KRBL Ltd. — Interim / Quarterly Report 2023

Feb 3, 2023

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E:KRBL/BIBHU/STK_EX_2223/81 03[rd] February 2023

The General Manager Department of Corporate Services BSE Limited Floor 25, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Scrip Code: 530813	National Stock Exchange of India Limited “Exchange Plaza”, C-1, Block-G Bandra-Kurla Complex Bandra (E), Mumbai-400051 Symbol: KRBL Series: Eq.

Sub: Investor Communication on Unaudited Financial Results of KRBL Limited for the Third Quarter (Q3) and Nine Months ended 31 December 2022

Dear Sir/Madam,

Pursuant to the provisions of Regulation 30 read with Para A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to enclose herewith the Investor Presentation on Unaudited Financial Results of KRBL Limited for the Third Quarter (Q3) and Nine Months ended 31 December 2022.

This is for your kind information and record.

Thanking you,

Yours Faithfully, For KRBL Limited

JYOTI VERMA Digitally signed by JYOTI VERMA DN: c=IN, postalCode=122001, st=HARYANA, street=H NO 871 SECOND FLOOR GURGAONSECTOR 40NEAR COMMUNITY CENTRE 122001, l=GURGAON, o=Personal, title=7135, serialNumber=e4a5c32bf0f695bc6dd92023f30f83262334c4279360d43c6c9bcc31262b5c3d, pseudonym=713520221018132322476, 2.5.4.20=5d7f1f48d3d1088e4300a3fd33ec2d4cc733bf4f536c78b2669f51f3bf9312c7, email=CS@KRBLINDIA.COM, cn=JYOTI VERMA Date: 2023.02.03 18:11:22 +05'30' Jyoti Verma Company Secretary

Encl: As above

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KRBL Ltd. Investor Presentation Q3 & 9M FY2023

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Unmatched Strengths

India’s largest exporter of branded basmati rice with #1 footprint in > 90 countries India Gate is recognized as the world’s no. 1 basmati rice brand #1 Integrated operations with world’s largest rice milling capacity and the world's largest plant in Punjab, #1 India

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1

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700+

KRBL has largest contact farming network coverage for rice Strong financial position; healthy internal accruals and liquidity with low reliance on debt Dealer and Distributors across India

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2

- Q3 FY23 Highlights

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Domestic Revenue: 998 Cr

Highest Ever Quarterly

Total Revenue: 1536 Cr

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3 All figures in Rs . crore and are based on standalone financials

*Excludes Energy

Q3 FY23 standalone performance highlights

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Total Income Gross Profit EBITDA PAT
1,554 455 297 205
63 503 4,560 4,435
Cash & Bank balance Net Bank Borrowings Net worth Total Inventory
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All figures in Rs . crore and are based on standalone financials

*Includes Other Bank balances and Investments (excluding Investment in Equity Shares)

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4

Continuing momentum in Revenue

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 27%
 33%
4,083
3,223 80
1,536 81
2,404
1,154
14 1,971
17
998
758
1,600
1,171
379 523
Q3 FY22 Q3 FY23 9M FY22 9M FY23
Exports Domestic Power Exports Domestic Power
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• Q3 FY23 & 9M FY23 revenue growth driven by both Domestic & Export Sales.

• Q3 FY23 Domestic HORECA sales augmented by GST rationalization on bulk packs, besides continuing strong retail demand.

All figures in Rs. crore

All figures are based on standalone financials

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5

Profitability metrics for Q3 & 9M FY23

Gross Profit (Rs. Crore)

EBITDA (Rs. Crore)

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31.9%
29.3%
27.1%
21.3%
455
883 1,320
249
Q3 FY22 Q3 FY23 9M FY22 9M FY23
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20.4%
19.1%
16.4%
10.6%
297
536 844
123
Q3 FY22 Q3 FY23 9M FY22 9M FY23
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• Strong Q3 FY23 Gross Profit margin & EBIDTA margin at 29.3% and 19.1% respectively. Margin lower than in Q2 FY23 on account of change in product sales mix and higher input costs.

• Q3 FY23 Gross Margin driven by basmati realization increase (31% over Q3 FY22) partially offset by 17% increase in rice input cost over the same period.

Profit After Tax (Rs. Crore) Cash Profit (Rs. Crore)

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14.1%
13.2%
10.8%
6.3%
205 351 583
73
Q3 FY22 Q3 FY23 9M FY22 9M FY23
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639
407
224
92
Q3 FY22 Q3 FY23 9M FY22 9M FY23
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• Q3 FY23 y-o-y EBITDA Margin improvement reflects Gross Margin trend partially offset by higher logistics and other costs.

• Q3 FY23 PAT trend a reflection of EBIDTA improvement.

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6 All figures are based on standalone financials

Superior balance sheet matrix

Current Ratio (%)

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8 8
Q3 FY22 Q3 FY23
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Working Capital Days

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253 266 262 271
20 12 30 17
Inventory Days Payble Days Recievable Days Working Capital Days
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Q3 FY22 Q3 FY23

All figures are based on standalone financials

• Higher total inventory (Rs 4,436 as on 31[st] Dec’22 vs Rs 3,168 Cr as on 31[st] Dec’21) to meet expected demand.

• Working capital days increased on account of higher inventory.

• Healthy overall liquidity position.

Inventory Position (Rs. Crore)

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2,252
2018
1660
1,359
Paddy Rice
Q3 FY22 Q3 FY23
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7

Superior balance sheet matrix

Net Bank Borrowing (Rs. Crore)

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503
318
Q3 FY22 Q3 FY23
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• Total Bank Borrowing as of Dec 31, 2022: Rs 566 cr

• Financial strength reflected in Strong Credit Rating: [ICRA] A1+; CARE A1+

Interest Coverage Ratio

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80
25
Q3 FY22 Q3 FY23
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All figures are based on standalone financials

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8

9M FY23 standalone performance highlights

Particulars (Rs in Cr. )	9M FY22	9M FY23	YOY Growth
Revenue From Operations	3,223	4,083	26.7%
Total Income	3,259	4,133	26.8%
Gross Profit	883	1,320	49.5%
Gross Profit Margin	27.1%	31.9%
EBITDA	536	844	57.6%
EBITDA Margin	16.4%	20.4%
Profit after tax	351	583	66.0%
PAT Margin	10.8%	14.1%
Cash Profit	407	639	57.1%

• Revenue growth witnessed in both Domestic and Export Segments.

• Better realization resulted in better margins.

All figures are based on standalone financials

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9

Financial trends over the years

Gross Profit (Rs. Crore)

Revenue (Rs. Crore)

EBITDA* (Rs. Crore)

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Revenue (Rs. Crore) Gross Profit (Rs. Crore) EBITDA (Rs. Crore)
4,499
3,246 4,120 3,992 4,211 1,119 1,241 1,299 1,255 1,191 819 865 894 846 705
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
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PAT (Rs. Crore) Net Bank Borrowings (Rs. Crore)

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503 559 560 1,382
462 460 1,128
375
53
(389)
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
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10 All figures are based on standalone financials, *Includes Other Income

Shareholder value creation

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Net worth (Rs. Crore) Dividend as a % of FV
 78% Consistent increase
Over FY18 over the years
4,063
3,685 350% 350%
3,119
2,717 280%
250%
2,279 230%
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
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All figures are based on standalone financials

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11
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11

India Business

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Continuing market leadership

998

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Revenue* in Rs. Crore for Q3 FY23

Trend in Domestic Business

• Y-o-Y domestic rice sale is higher on account of higher retail volume, higher HORECA volume post GST rationalization on bulk packs, and higher realization.

32% Revenue growth Y-o-Y

*Excludes Energy

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13

~~STRATEGIC PILLARS | DOMESTIC~~

1.

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INCREASING BRANDED BASMATI PENETRATION

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2.
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DENSIFYING DISTRIBUTION REACH

3. AUGMENTING PORTFOLIO ACROSS SEGMENTS

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~~STRATEGIC PILLARS | DOMESTIC~~

1. 2. INCREASING BRANDED BASMATI DENSIFYING PENETRATION DISTRIBUTION REACH

3. AUGMENTING PORTFOLIO ACROSS SEGMENTS

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STRATEGIC PILLAR 1

INCREASING BRAND PENETRATION

INDIA[*] BASMATI PENETRATION (% OF PENETRATED HOUSHOLDS%)

Existing: Driving conversion through Unity

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BASMATI RICE : 41%

UNBRANDED BASMATI : 31% BRANDED BASMATI : 20%

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New

Unity is now a Rs. 600 crore plus brand

Campaigns launched in Q3

Initiative:

Huge headroom for increasing Branded Basmati’s penetration

HINDI SPEAKING Driving MARKETS WEST BENGAL consumption through India Gate MAHARASHTRA

*Source : Kantar Household Panel (MAT Sept’22) – 11 Major Markets (Urban)

Overall Basmati Rice Numbers : ‘Branded Basmati + Unbranded Basmati’ penetration is higher than Basmati penetration since this includes dual usage households also

STRATEGIC PILLAR 1

NEW BRAND CAMPAIGNS

Launched in Dec’22

HINDI-SPEAKING MARKETS

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‘Basmati Rice Se No Compromise’

I love my Saasumaa - https://youtu.be/ePDZpW5lFqQ Maa ke haath ka khaana - https://youtu.be/FKptBujuzr8 Inka Favorite Pulav - https://youtu.be/z2c7ZUW5QlY

WEST BENGAL

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Home Minister

Home Minister - https://youtu.be/m6tKGdi5Zr0

MAHARASHTRA

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Brand Power

Preferred by 9 out of 10 women in Mah. Brand Power - https://youtu.be/8rx0kVV_GHc

TV + DIGITAL

TV

TV + DIGITAL + PRINT

HIGH IMPACT TV LAUNCH & SUSTENANCE CAMPAIGN SPREAD OVER A PERIOD OF 4 MONTHS ACROSS 25+ LEADING CHANNELS!

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And many more…

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STRATEGIC PILLAR 1

LAUNCH IMPACT

New campaign launched with High Impact across markets

MASTERCHEF INDIA Season 7

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BIG BOSS
Hindi & Marathi
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INTEGRATIONS & SPONSORSHIPS

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Special partners for MasterChef India - Season 7

Product display | Multiple Integrations | Regular TVC spots | Relevant audience

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‘Basmati Rice Se No Compromise’

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‘9 out of 10 women in Maharashtra recommend India Gate’

Integrations & Sponsorships across Top daily soaps & High Impact & visibility-driving properties like Cookery and Gaming shows

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~~STRATEGIC PILLARS | DOMESTIC~~

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1. 2. 3.
INCREASING
BRANDED BASMATI DENSIFYING AUGMENTING
PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS
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STRATEGIC PILLAR 2

DENSIFYING DISTRIBUTION REACH

Increasing Penetration through improved availability

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MARKET REPRESENTATION

40% increase in number of distributors Having market representation in ALL 50k+ Pop. Towns in North & West & ALL 1 Lac+ Pop Towns in East & South

MARKET COVERAGE

50%+ increase in Feet On Street with focus on direct retailing and improved assortment availability

SECONDARY COVERAGE

Increase by 400 bps to 35%

Leading to increase in ND(%)

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NUMERIC DISTRIBUTION (%)*

Traditional Trade Q3 FY22 Q3 FY23 KRBL 37.2 39.2 +200 bps

*Numeric Distribution = (No. of outlets in which KRBL packaged Basmati Rice is available) / (No of outlets in which Packaged Rice (Basmati & NonBasmati) is available).

Source: As per Nielsen’s OND’22 RMS data

~~STRATEGIC PILLARS | DOMESTIC~~

1. 2. 3. INCREASING BRANDED BASMATI DENSIFYING AUGMENTING PENETRATION DISTRIBUTION REACH PORTFOLIO ACROSS SEGMENTS

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STRATEGIC PILLAR 3

PORTFOLIO INTERVENTIONS

Introducing offerings at attractive price points in the Daily segment with INDIA GATE DAILY PREMIUM INDIA GATE EVERYDAY

UNITY PULAV

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AUGMENTING PORTFOLIO across segments

HEALTH PORTFOLIO

REGIONAL RICE

With ~77 Mn Indians living with diabetes & an equal number expected to be pre-diabetic, KRBL further strengthens its health portfolio , by launching a Diabetic Friendly Rice INDIA GATE SUGAR WATCHERS

Positive response to Aged Regional Rice offerings from the house of India Gate – SURTI KOLAM, JEERA RICE and SONA MASOORI

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EXPANSION UPDATE

• Gujarat- Work in progress. Expected to go live by April,2023

• Karnataka- Land already acquired, other formalities are in progress.

• Madhya Pradesh- Land identification is in progress.

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BRAND LANDSCAPE

LEADERSHIP GOING STRONG

Further consolidating leadership position

ALL INDIA VOLUME SHARE _(Q3FY23)_ Q3 FY23 Q2 FY23 Q3 FY22 Traditional 32.4% +90 bps +70 bps Trade Modern 39.8% +810 bps +360 bps Trade*

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• Source: As per Nielsen’s OND’22 RMS data

India Brand Portfolio

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Export Business

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Leadership beyond India

523

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Revenue in Rs. Crore for Q3 FY23

Trend in Export Business

• Strong y-o-y growth from key markets such as Saudi Arabia and UAE.

38% Revenue growth Y-o-Y

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Exports Brand Portfolio

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Positive trends for Rice export from India

Global markets offer exciting opportunities for KRBL to drive growth

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• High yielding varieties of rice have led to surplus production in the country

• Production • Adoption of technology in farming have helped spur growth in produce • Focus on quality has led to increased demand for Basmati globally

• Export • India is the #1 exporter of rice and has a 65% share of the global basmati market Leader • Globally, India accounts for ~85% of basmati exports which is expected to rise Indian • Increasing demand for the PUSA basmati variety in the US which was commercialized by Presence KRBL Globally • Large Indian diaspora aboard to drive rice as both a staple and a restaurant grade item Demand • Excellent quality standards have spurred increase in the demand for Indian basmati rice from amongst locals Middle • Supported by consistent supply, 52% of total rice consumption is Basmati Rice (As per AC East Nielsen)

• Shift to • ~$10 million of rice exported out of India under private label is Brown Rice

• Healthier • UK accounts majorly for the import of brown rice with shift to healthier alternatives

• Option

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Basmati rice exports from
India for FY22 – Volume - (%)
Asia; 3% Oceania; 1%
Africa; 4%
North America;
6%
Europe; 6%
Middle East;
80%
Source: APEDA
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28

Overall international market position

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Middle East
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Europe
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• •KRBL has leadership position in terms of market share in most GCC countries

• •India Gate is #1 Indian Basmati rice brand in Qatar, UAE, Bahrain

• •India Gate is the only premium Indian Rice brand in GCC

• •Nur Jahan is the 2[nd] most popular brand in the region and preferred brand among price conscious consumers

• •Europe is a growing market for KRBL

• •KRBL’s growing portfolio of the health food segment to propel growth in the region •Development of new crop will help in complying pesticide norms and will grow KRBL’s presence in the region

• •KRBL consistently earns substantial premium on realizations.

• •India Gate is #1 Indian Basmati rice brand in Canada both in Ethnic and Modern Trade

Americas

• •Present in the dominant channels of trade •Popular brand among diaspora, rising local popularity

• •KRBL has leadership position in Australasia for last 15 years

• •India Gate is #1 Indian Basmati rice brand in Australia, New Zealand and Fiji with 26% market share

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RoW
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• •Nur Jahan is #1 Indian Basmati rice brand in South Africa with 53% import share •32% dominant import share in dominant Northern African markets

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Export Strategy

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Launch of economy
variants / small packs to
drive penetration
New products
Channel expansion
Existing
Markets
New / Seeded
Acquisition of markets
“adjacent” basmati
consumer Direct marketing
Channel
deepening &
diversification Direct marketing
- Penetration to locals with Arabic TVC in mainstream
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• Penetration to locals with Arabic TVC in mainstream channels

• -Targeting geo-location customers through social media

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• -Increasing focus on India Gate HORECA line up to target HORECA customers

30

Contact Us

Safe Harbor

This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to KRBL Limited and its affiliated companies (“KRBL”) future business developments and economic performance.

While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro‐economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.

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Investor Relations Desk

KRBL Ltd.

Tel: +91‐120‐ 4060 300 Email: investor@krblindia.com

KRBL undertakes no obligation to periodically revise any forwardlooking statements to reflect future/ likely events or circumstances.

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31

Thank You

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