KRBL- The King of Basmati rice


(GSrikan) #585

Pretty good results.

Rev up 74% (1250 cr vs 716 cr YoY)
PBT up 44% (222 cr vs 157 YoY)
Agri Revenue up 76.6% (1194 cr vs 676 cr YoY)
Power Revenue up (69 cr vs 52 cr YoY)
PBT Agri up 29.5% (184 cr vs 142 cr YoY)
PBT Power up 40.7% (38 cr vs 27 cr YoY )
Domestic Agri Revenue up 47% (558 cr vs 380 cr YoY)
Export Agri Revenue up 114% (635 cr vs 296 cr YoY)

Exports Seems to have contributed primarily. Domestic, Power too contributed.

Finance costs 92 lakhs vs 13.91 crores (YoY). (Need to understand whether is some kind of adjustment of forex gains into finance costs; Balance sheet indicates Short term Borrowings are down to 115 cr from 1164 cr Six months back; 208 cr Year back)

Receivables stable YoY at 253 cr (vs 246 vr six month back; 261 cr Year back). Payables down to 56 cr (vs 115 cr Six months back & 84 cr and Year back).

Got to listen to concall to understand this Export performance is sustainable or not in coming quarters.

Discl: Invested


(rupaniamit) #586

Last quarter management mentioned that a cargo (worth approx 150-200cr) for Middle East was lying at the port and they weren’t able to ship it by end of Q1. The sale for this cargo is included in Q2 result and hence export numbers are inflated. Need to understand realization trend and value of existing inventory.

Margins were under pressure for Q2FY19 as perhaps benefit of lower cost inventory is not left anymore:

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(GSrikan) #587

Video version:

Text version:

Very silly interview to replace important conference call. Not much useful info other than management were aggressive in increasing sales so had to sacrifice margins. H2 would be close to H1. No answer to investigation part of question. Iran seems to be planning to buy rice using rupee. No benefit of dollar appreciation due to 80% of dollar revenues are hedged.

Reading between the lines, looks like they have reduced the prices to compete with new players like Adani-wilmer, Patanjali etc…

Disc: Invested


(jajushobhit) #588

While I broadly agree with your analysis, there is a ~7-8% increase in realizations (both domestic and exports). Further, another positive is the ~35% increase in domestic volumes. Though, one may argue that it has come at the expense of margins. Giving the link of the presentation uploaded by the company on website.

Regards
SJ