KRBL stock tanks 7% on weak June quarter show; profit more than halves

KRBL shares fall: Shares of KRPL, one of the largest Basmati rice exporters, dropped as much as 7.21 per cent to hit an intraday low of Rs 295.30 per share on Thursday, August 01, 2024. 

The fall in the stock price came after the company reported a weak set of June quarter results.

The rice exporter’s profit plunged 55.5 per cent on a year-on-year (Y-o-Y) basis to Rs 86.6 crore in the June quarter of financial year 2025 (Q1FY25), from Rs 194.7 crore in the June quarter of financial year 2024 (Q1FY24).

The revenue from operations, or topline, fell a little over 15 per cent to Rs 1,199.2 crore in the June quarter of FY25, from Rs 1,414.2 crore in the June quarter of FY24. 

 

At the operational level, earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, dropped 53.4 per cent on Y-o-Y basis to Rs 117.2 crore in the June quarter of current fiscal year, from 251.5 crore in the same quarter a year ago.

Consequently, Ebitda margin squeezed 800 basis points (bps) to 9.8 per cent in Q1FY25, from 17.8 per cent in Q1FY24. 

KRBL is among the leading producers of basmati rice with comprehensive operations spanning the entire basmati value chain, including seed development, contract farming, procurement, storage, processing, packaging, branding, and marketing.

With a legacy of 120 years, KRBL stands out as a major producer of both basmati and non-basmati rice. The company also produces milling by-products such as bran oil, furfural, rice bran, and de-oiled cakes.

Under its flagship brand, ‘India Gate,’ KRBL markets rice alongside 13 other brands, including Taj Mahal, Doon, Nur Jahan, Bemisal, and Unity.

The company has established a robust distribution network across India with over 800 dealers and distributors, and 387,000+ retail outlets in more than 750 cities. In the first quarter of FY24 alone, KRBL opened around 50,000 new outlets.

Globally, KRBL exports basmati rice to over 90 countries across six continents, leading the branded segment of the basmati rice market. The Middle East, including countries such as Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Bahrain, is a key market for KRBL, accounting for nearly 67% of its total export sales in FY23.

The market capitalisation of KRBL is Rs 6,826.64 crore, according to Bombay Stock Exchange (BSE).

At 10:29 AM, the shares of KRBL were trading 6.28 per cent lower at Rs 298.25 per share. In comparison, BSE Sensex was trading 0.21 per cent higher at 81,910.85 levels.