Agricultural Products company GRM Overseas announced Q1FY24 results: Total Revenue grew marginally to Rs 325.9 crore from Rs 318.8 crore in Q1FY23 GRM’s Foodkraft revenue grew by 8% YoY to Rs 41.1 crore Export business stood at Rs 268.7 crore EBITDA at Rs 29.7 crore as against Rs 30.9 crore in Q1FY23 and Rs 25.3 crore in Q4FY23 EBITDA Margin up by 333 bps on QoQ level, to 9.1% in Q1FY24, from 5.8% in Q4FY23, indicating a return to normalcy PAT stood at Rs 17.4 crore with a PAT Margin of 5.4% Speaking about the performance and recent updates, Atul Garg, Managing Director, said, “We have reported a decent quarterbacked by high single-digit revenue growth in the branded domestic business (GRM Foodkraft), while our export business remained steady. Our EBITDA has recovered significantly on a sequential basis and is expected to improve further. We have been witnessing stimulated demand and improved liquidity of our stock of basmati rice after the Govt. banned the export of non-basmati rice. The shift in demand from non-basmati to basmati rice in export would lead to higher exports. While we anticipate strong revenue growth in exports, our domestic branded business is making consistent strides, as demand in Tier-II and Tier-III towns is moving towards the branded segments. We are strategically positioning our products to capture both conventional customers and contemporary customers who prefer buying products online. We have an unwavering belief in our ability to position ourselves as the preeminent and reliable standalone consumer staples brand in the country. This conviction is underpinned by the growing acceptance and demand of our 10X brand in the domestic market.” Result PDF
Other agricultural products firm GRM Overseas announced Q3FY23 results: Consolidated Q3FY23: Total revenue grew by 16.6% YoY, to Rs 365.1 crore as compared to Rs 313.2 crore in Q3FY22. GRM’s Foodkraft revenue grew by 55.3% YoY to Rs 121.1 crore. Export business up by 10.9% and stood at Rs 233.7 crore. EBITDA at Rs 32.9 crore as against Rs 39.6 crore in Q3FY22. EBITDA Margin stood at 9.0% in Q3FY23 as against 12.7% in Q3FY22. PAT stood at Rs 19.6 crore. Consolidated 9MFY23: Total revenue increased by 20.1% YoY to Rs 954.1 crore as against Rs 794.5 crore in 9MFY22. GRM’s Foodkraft revenue surged by 51.6% YoY to Rs 200.6 crore in 9MFY23, as compared to Rs 132.3 crore in 9MFY22. Export increased by 14.5% YoY to Rs 710.5 crore during 9MFY23 as against Rs 620.6 crore in 9MFY22. EBITDA at Rs 85.7 crore as against Rs 104.3 crore in 9MFY22. EBITDA Margin stood at 9.0% in 9MFY23 as against 13.1% in 9MFY22. PAT during the period was at Rs 51.6 crore. Speaking about the performance and recent updates, Mr. Atul Garg, Managing Director, said: “We have delivered a strong revenue growth this quarter, backed by our meticulous efforts to increase our presence in the domestic branded business and our solid presence in the exports business. The domestic business is growing at a stronger pace ever since the introduction of the 10x brand, which is gaining good momentum. Although our margins were under pressure on a YoY basis, we have been able to contain our margins sequentially. We have also forayed into Agrotech space and have signed agreement with Harvesting India Private Limited (HFN). This agreement will ensure that we further expand our supply chain and product portfolio, meanwhile enabling us to magnify the reach of our 10x brand as those products will be sold on HFN’s online and offline platforms, in addition to the current major channels. This is surely a progressive step in our journey to become one of the largest and most trusted consumer staples brands in India. Going forward, our anticipation is that we will grow better, which will be driven by the deeper penetration and improved performance of the domestic business and supported by our robust and steady export growth. Softening of commodity prices will also enable us to improve our margins, going forward.” Result PDF