KRBL Limited (KRBL) Q2 23/24 earnings summary

Executive summary

• Q2 domestic revenue excluding power rose 35% YoY to INR 940 crore, supported by basmati volume growth and market-share gains; export revenue fell 60% to INR 235 crore amid Saudi distribution disruption and absent prior-year China bulk exports.

• H1 revenue from operations grew 3.1% YoY, while gross profit, EBITDA and PAT declined on higher input costs and product-mix changes; auditors qualified their review over the ongoing ED investigation.

Financial highlights

• Q2 consolidated revenue from operations was INR 1,213.39 crore versus INR 1,319.28 crore YoY; total income was INR 1,246 crore, down 7%.

• Q2 consolidated PAT was INR 153.29 crore versus INR 213.10 crore YoY; EBITDA was INR 228 crore and gross profit INR 361 crore.

• H1 revenue from operations was INR 2,627.04 crore versus INR 2,547.51 crore; total income was INR 2,687 crore and PAT was INR 347.94 crore versus INR 377.55 crore.

• H1 operating cash flow was INR 1,759.03 crore versus INR 1,137.41 crore; cash generated from operations was INR 1,860.24 crore versus INR 1,228.71 crore.

Outlook and guidance

• Saudi branded sales could build toward INR 700 crore as retail and HORECA distribution normalizes; discussions continued with potential partners, with ramp-up expected in Q4.

• Regional rice FY24 revenue target was INR 200 crore, with a medium-term target of at least INR 1,000 crore within three to five years.

• Management expected rice exports to rise 7%-8% and domestic consumption to increase at least 10%-12%; procurement is spread over 90 days to average price exposure.

• Domestic priorities include broader branded basmati penetration and distribution; export strategy includes new markets, smaller packs, channel expansion and HORECA offerings.