The below post has an article of how ITC could benefit from the on going Russia Ukraine crisis as these countries account for 30% wheat export. As a result commodity wheat prices shot up 50%. The article also says ITC could benefit from its rice export as people will start consuming more rice than costly wheat. This will be good to KRBL as well.
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The last one two years we are discussing this issue but just see the reality on the ground sales going down margins under pressure long protracted legal battle still ed holding 6 Percent stake.
As investors we have to understand that the market knows better than us may it is trading at a reasonable fair value today but the question is why to take risk were we completely not aware of the total scenario as small individual investors the is adage to remember
If they can steal for you one day they will steal from you.
So there enough other investing opportunities why put our neck in line for this
Last point even now they are holding to joint auditors as whole time after the old auditors criminal link
Discl tracking only
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Seeing the last few posts I feel there’s good value in this company at current price. Ofcourse it is subjective to each person. Promoter buying from open market is a very good sign. At this price most of the negatives are already priced in.
Disc:
Holding. Will change my mind if anymore negatives crop up.
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With price of all agri inputs flaring up, KRBL (which has the highest inventory of rice among listed players )will definitely benefit. Should see improving results going ahead from them. Inventory is close to 2800 Cr whereas market cap is only 4500 cr with negligible debt. Moreover, their buying power due to inventory +no debt will ensure market share gains as well.
Disc : Invested
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- Got huge Tax Relief
- Contingent Liability to get reduced too
1f73cdef-e5c8-4ba8-8954-eaab93f7b1dd.pdf (863.9 KB)
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Does this means company has done nothing wrong and they will not swindle company into VVIP chopper scam also?
This is different issue altogether - this is tax demand from IT department and you are referring to Augstawestland case… Though it is good that management was right in this matter. Thanks!
i had read in some news report that CBI dont have enough material proof wich can prove wrong doing in this case as already all material evidence are destroyed already.
If the company is clean on Income Tax, means it has not done any money laundering or faking receipts, etc. ( I was asking on those lines ) , Extensive audits and books must have already been reviewed by the IT department.
I think you have misunderstood the both case. Let me try to give you some perspective.
- Income tax demand: this issue pertains to tax demand for FY11 to fy16 - IT department issue notice based on mismatch in their database and what company have filed. Of course IT team might have asked for more information and company provided the same but they did not agree and hence notice and the all arguments happen in respective forum.
I am not sure but based on little serach - I did on this - this was related to some repecipt where company did not get it from local mandies hence it department did not recognised as expenses.
This stand as solve as per company’ recent filling.
- Augstawestland scam:
This is bigger issue then former but there is no way to put finger on exact amount as this is done through sham agreement and kickback so no documentation.
Here ED alleges that company helped culprit and middleman to get there kickback amount via their dubai subsidiary in India. I lack space to describe the the whole issue as lot companies and persons have been detained by ED - you can find a lot of information on Internet.
ED has yet to file chargesheet (as per last status I have checked) against mastedmind of this scam.
And if you want to check specific information when company’ joint MD was arrested - I have posted order of every hearing in this forum.
Hope this clarify few things for you.
Thanks!
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Following Additions made by IT dept. for the Asst. years 2010-11 to 2016-17 were deleted by tribunal in a recent judgement on 09.05.2022 :-
- Addition of INR 4,76,843 + 29,98,74,335 + 5,27,159 + 14,07,06,177 + Rs. 49,72,24 ,635/- for A.Y . 2014-15 , Rs. 31 ,36,47 ,795/- for A.Y. 2015-16, Rs. 36,54,70 ,992/- for A.Y. 2016-17 of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills.
- Addition of INR 15,15,74,668/- in respect of the income earned by M/s KRBL DMCC, Dubai, a wholly-owned subsidiary of the KRBL Ltd. by alleging it as the income of the KRBL Ltd.
- Addition of INR 2,07,72 ,796/- on account of stock difference in rice during physical verification.
- Addition of INR 2,05,94 ,826/- alleging the same as unaccounted money of the KRBL Ltd.
- Addition us 40 A (3) payment made to mandis u/r 6 DD (e) by the appellant in excess of Rs. 20,000/- in making such purchases amounting to Rs.443 ,67,45 ,973/- were disallowed and added back to the income of the appellant.
link to judgement
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KRBL Q4 results
Revenue lower QoQ, Flattish YoY.
Decent operating cash flow. 215 Cr. debt repaid.
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Compared to the result, L T Foods has knocked out of the park. Clearly, risk-reward ration and undervaluation is more favorable there.
Apologies if the thread is irrelevant, will delete after 24 hours.
Disclosure :- Not invested.
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I had a listen to the KRBL earning conference call. For me the key highlights are -
- They had ~1,100 Cr. export to Saudi and Iran which reduced to ~300 Cr in last FY. Saudi was a problem on account of dealer issue. The new dealer has been appointed.
- They expect ~700 Cr. revenue from Saudi itself in FY23. Also, they expect 400-500 Cr rev. from Iran in FY23.
- Expansion is initiated at Guj, MP and Karnataka(Non-Basmati only)
- Initial revenue from the three expansions is expected to be ~400 Cr. and would be scaling to ~1,300 Cr. (around FY24)
- Expect 70-80 Cr revenue from expansion in Q4’FY23.
- Growth from Non-Saudi and Non-Iran is expected to be about 10%
- Major headwind seems to be the sharp increase in freight cost. Its taking them 4 times the money in freight cost compared to earlier to ship to US and middle east.
Overall there are drivers for growth to return for KRBL.
Can someone please suggest, what is the most convenient way to track the freight costs? Besides, I am wondering - how is LT foods able to cater to such an increase in freight cost.
LT Foods Operating Margins past 5 quarters starting Mar’21 - 10%,11%, 12%,11%,10%
KRBL Operating Margins past 5 quarters starting Mar’21 - 21%,19%,19%,09%,16%
D-Invested
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LT Foods is also facing the issue of high freights which is evident from the sharp jump in other expeses and also mentioned in their con call.
Sharp increase in global freight rates seen in stastista report
statistic_id1250636_container-freight-rate-index-worldwide-2019-2022.pdf (80.7 KB)
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"Suraj Agarwal, CEO of Kolkata-based Tirupati Agri Trade, said: “Prices of all varieties of rice have gone up by 30%. The ratna variety of rice, whose price was ₹26 per kg, has shot up to ₹33 … Prices of basmati rice have also shot up by almost 30%, from Rs 62 per kg to Rs 80, as demand is very strong from Iran, Iraq and Saud Arabia.”
Advantage KRBl…? huge inventory gains ?
Similar view on rice prices has been shared by LT foods recently in CNBC Interview
Q1’22 results are out
Visible improvement after a disappointing Q4. With the tail winds in terms of price increase, rupee depreciation - It seems stage set for a good FY’23 oerformance
Investor Presentation : https://www.bseindia.com/xml-data/corpfiling/AttachLive/8bcb8111-97d4-45ec-bf93-38206ed7eed4.pdf
Disc-Invested
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