KRBL Limited (KRBL) Q3 23/24 earnings summary

Executive summary

• Q3 FY24 revenue from operations was ₹1,437.03 crore and total income ₹1,465.27 crore; domestic growth partly offset sharply lower exports.

• The auditors’ review conclusion was qualified for possible effects of the ongoing ED investigation; the separate land-attachment matter drew attention but did not modify the conclusion.

Financial highlights

• Q3 gross profit was ₹363 crore, EBITDA ₹206 crore, and PAT ₹133.84 crore, versus ₹205.45 crore PAT a year earlier.

• Q3 gross margin was 24.8% vs. 29.3% YoY; EBITDA margin was 14.1% vs. 19.1%, and PAT margin was 9.1% vs. 13.2%.

• 9M revenue from operations was ₹4,064.07 crore (-0.5% YoY), total income ₹4,152 crore (+0.5%), EBITDA ₹712 crore (-15.7%) and PAT ₹481.78 crore (-17.3%).

• 9M gross profit was ₹1,139 crore (-13.7% YoY), gross margin 27.4% vs. 31.9%; EBITDA margin was 17.1% vs. 20.4%, and PAT margin 11.6%.

Outlook and guidance

• Management expected subdued prices in March-April amid government pressure, with prices potentially rising after April as demand and consumption grow.

• Management expected a better Q4 export quarter, including potential bulk basmati shipments in Q4 or Q1 FY25; other markets were expected to do 25%-30% more business than Q3.

• Domestic priorities include deeper branded basmati penetration, broader distribution and portfolio expansion; export strategy includes diversified channels, economy variants, small packs, direct marketing and HORECA.

• Regional rice revenue was on track to exceed the ₹200 crore FY24 target; the longer-term ambition is ₹1,000 crore within five years.