KRBL Limited (KRBL) Q3 22/23 earnings summary

Executive summary

• Q3 FY23 revenue from operations rose 33% YoY to Rs 1,53,599 lakh; PAT reached Rs 20,545 lakh, up from Rs 7,336 lakh.

• Growth was supported by higher realizations, stronger domestic and export sales, and procurement 47% above the prior year to meet orders and aging needs.

Financial highlights

• Q3 total income was Rs 1,55,393 lakh versus Rs 1,16,868 lakh; EBITDA was Rs 297 crore and PAT was Rs 205 crore.

• Gross profit rose 82% YoY; gross margin was 29.3%, up 800 bps YoY but down from 34.6% in Q2, reflecting product mix and higher input costs.

• EBITDA margin was 19.1%; PBT and PAT margins improved to 17.7% and 13.2% from 8.6% and 6.3% a year earlier.

• 9M FY23 revenue from operations reached Rs 4,08,350 lakh and PAT Rs 58,300 lakh, up 66% YoY; EBITDA rose 57.6% to Rs 844 crore.

Outlook and guidance

• Q4 realizations and shipment volumes were expected to reflect higher prices, with Ramadan-related demand effects in the quarter.

• Export Basmati prices were viewed as sustainable over the long run, though management expected volatility with importer demand.

• HoReCa target share rose to 20%-25% from ~10%, with a goal to double segment revenue within two years.

• Pesticide-resistant Basmati varieties were expected in limited quantities in 2023 and sufficient quantities for the 2024 crop, supporting plans to enter Europe and the U.S.