GRM Overseas reports Consolidated Q2 & H1FY23 Financial Results

GRM Overseas Limited (herein referred to as "GRM"), one of India's leading basmati rice exporters and a growing consumer staples player, announced the financial results for the Q2 and H1 ended 30th September 2022.

Consolidated Financial Performance

Q2FY23

- Total Revenue at Rs 270.2 Crores as compared to Rs 258 Crores in Q2FY22, a growth of 4.7% YoY

- GRM's Foodkraft revenue increased by 10.6% YoY to Rs 41.4 Crores in Q2FY23

- Export business stood at Rs. 211.7 Crores as compared to Rs. 210.5 Crores in Q2FY22

- EBITDA at Rs 21.8 Crores as against Rs 36.4 Crores in Q2FY22

- EBITDA Margin stood at 8.1% in Q2FY23 as against from 14.1% in Q2FY22. The margins were impacted largely due to higher raw material prices

- PAT was at Rs 13.7 Crores as compared to Rs. 24.5 Crores in Q2FY22

H1FY23

- Total Revenue grew substantially by 22.4% YoY to Rs 589 Crores as compared to Rs 481.3 Crores in H1FY22

- GRM's Foodkraft revenue increased by 46.4% YoY to Rs 79.5 Crores in H1FY23, as compared to Rs 54.3 Crores in H1FY22

- Export business up by 16.3% YoY to Rs 476.8 Crores during H1FY23 as against Rs 410 Crores in H1FY22

- EBITDA at Rs 52.8 Crores as against Rs 64.7 Crores in H1FY22

- EBITDA Margin stood at 9.0% in H1FY23 as against 13.4% in H1FY22

- PAT during the period was at Rs 32.0 Crores as compared to Rs 42.8 Crores in H1FY22

Speaking about the performance, Mr. Atul Garg, Managing Director, said: "We are happy to report that the company saw robust business growth in the first half of the current financial year. With the new procurement season just getting underway, we expect the H2FY23 performance to be better as compared to H1FY23. We have recently introduced 10X Zarda King Rice to our domestic branded portfolio. This along with our existing D2C portfolio of consumer staples like the Ready to Cook Biryani kit, Ready to Eat Biryani, packaged wheat flour (Atta), and subsequentially the expected launch of mustard oil will help us to consistently achieve healthy growth.

However, there was an impact on operating margins in H1FY23 on account of inflationary pressure. We are currently focusing on gaining market share and with the easing of raw material prices going ahead, we are optimistic about margin expansion in the future.

We anticipate excellent overall performance going forward as our domestic business picks up steam and is equally backed by the steady export business."

Source : Equity Bulls

Keywords

GRMOverseas Q2FY23 H1FY23 ResultUpdate