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HomePosts Tagged "Financial results for Q1 FY2025"
Agribusiness, Company News, Finance, Foodgrains, India, Trade

The E-commerce ecosystem has delivered a staggering 75 per cent revenue growth (vs. STLY) * for KRBL, solidifying its position as a pivotal strategic channel for the company’s business expansion.

KRBL Limited, renowned for its flagship range- India Gate Basmati Rice, the World’s No. 1 Basmati Rice brand, has reported robust growth in the domestic market for Q1 FY25, with revenue of Rs 925 crore, marking a 9 per cent year-on-year increase. This growth is underpinned by a significant rise in both volume and realisation for branded Basmati rice, as well as a 23 per cent surge in sales of non-Basmati branded rice.

KRBL has achieved a record-breaking market share of 37.1 per cent (+460 bps*, STLY) in general trade, 44.9 per cent (+280 bps*, STLY) in modern trade, and 42.0 per cent (+350 bps*, STLY) in e-commerce, significantly strengthening its leadership across all market categories in Q1 FY25. The E-commerce ecosystem has delivered a staggering 75 per cent revenue growth (vs. STLY) * for KRBL, solidifying its position as a pivotal strategic channel for the company’s business expansion.

The company’s unwavering efforts to enhance product availability and densify its distribution network are credited with this achievement. Currently, the brand is present in over 1.1 crore households nationwide, with a 10 per cent penetration (8 per cent increase* over STLY) and a retail outlet presence of 3.8 lac outlets.

The company has also received a positive response to its regional rice offerings and the India Gate Classic Biryani Masala. The regional rice segment, featuring aged varieties such as Surti Kolam, Jeera Rice, Sona Masoorie, Wada Kolam, and Gobindo Bhog, has grown by 23 per cent, reflecting strong consumer demand. Similarly, the India Gate Classic Biryani Masala has gained traction across E-commerce and Modern Trade platforms, further enhancing KRBL’s presence in the domestic market.

Ayush Gupta, Domestic Business Head, KRBL, commented on the performance, saying, “Our recipe for success is built on three essential pillars: Consumer, Category, and Channel. We place the consumer at the core of everything we do, constantly evolving with their preferences and translating these insights into impactful initiatives. Our passion goes beyond selling rice; we’re committed to elevating the entire basmati category. By expanding the market, educating both consumers and retailers and preserving Basmati’s heritage, we ensure an uncompromised experience. Additionally, a robust omnichannel presence has been crucial in connecting with the right customers at the right time, driving our growth strategy forward”

As KRBL continues to build on its market leadership, the company remains dedicated to expanding its reach and strengthening its product offerings in the domestic market, ensuring sustained growth and value for its stakeholders.

The E-commerce ecosystem has delivered a staggering

Agribusiness, Agro chems – Chemicals, Agro chems – Fertilizers, Company News, Finance, India, Speciality Chemicals

Company registered Profit After Tax (PAT)of Rs 200 crore which is 76 per cent higher on YoY basis.

Deepak Fertilisers and Petrochemicals Corporation Limited, one of India’s leading producers of industrial & mining chemicals and fertiliser announced its results for the first quarter ended June 30, 2024.

In Q1FY25 company delivered revenue Rs.2,281 Crores, marginal decline by 1.4 per cent on YoY basis due to lower commodity prices. Company’s EBITDA margin improved to 20.4 per cent against 12.1 per cent on YoY basis. Company’s PAT was Rs.200 crore which is 76 per cent higher on YoY basis.

During the quarter, sales of manufactured bulk fertilisers was 174 KMT, representing an 11 per cent increase YoY. The company has launched Smartek fertilizer for paddy, pulses, and cotton, along with the Croptek grade for soybean crops. Sales of specialty fertilizer product, Bensulf, amounted to 10 KMT this quarter, reflecting a 51 per cent increase YoY.

Sales of traded specialty fertilisers in Q1FY25 saw an 80 per cent increase YoY. With global prices for water-soluble fertilisers stabilizing, demand has now returned to normal levels.

 With better monsoon, the demand outlook is positive. We are focusing on delivering crop specific and water-soluble fertilizers which deliver higher yield and productivity to the farmer. Additionally, our recent partnership with Israel-based Haifa Group will help to promote high-performance specialty fertilisers.

Segment Performance:

Chemical Segment (Mining and Industrial Chemical) contributed about 57 per cent of total revenue which grew by 5per cent YoY mainly driven by improved demand in TAN business.

Fertilisers Segment contributed 43 per cent of total revenue which was lower by 9 per cent YoY because of delay in monsoon which post July has picked up very well.

Reduction in key RM Prices during Q1FY25 has resulted in lower NSP:  Ammonia 36 per cent YoY; MOP 37 per cent YoY; Gas 7 per cent YoY; while delivering improved overall margins.

Launched Croptek grade for Soyabean Crop and Smartek grade for Paddy-& Pulse.

The National Budget has proposed Duty hikes on Ammonium Nitrate and Duty reductions on the Precious Metals used for Catalysts, both will have a positive impact.

Commenting on the performance, Sailesh C. Mehta, Chairman & Managing Director said, “DFPCL has delivered an impressive performance for Q1FY25, with notable increase in EBITDA margin by 823 bps YoY, up from 12.1 per cent to 20.4 per cent.

The businesses are reaping the benefits of backward integration of Ammonia plant which has helped mitigate supply chain risk as well as price volatility and the benefits are captured within the group.

Also, the strategy of moving from commodity to speciality has been working to sustain and enhance the margins of the businesses.

Mining chemical segment demonstrated robust volume and margin growth supported by stable imported Fertliser Grade Ammoniam Nitrate (FGAN) prices and lower ammonia prices. The proposed duty hike on ammonium nitrate will also help going forward.

The fertilizer business volume was driven by Croptek and specialty fertilizers, providing crop-specific solutions to farmers. Despite delayed monsoon and high inventory of phosphatic fertilizers, volumes slightly declined by 3 per cent YoY. With rains predicted to be above normal, we expect volume growth in the coming quarter, boosted by new launches: Croptek grade for Soyabean and Smartek for paddy and pulses.

Margins of Nitric acid is stable with volumes lower on YoY basis due to extended repair in WNA plant. The IPA business declined by 8 per cent YoY due to the planned shutdown of the plant. Going forward, we expect stable demand in both Nitric Acid and IPA segment.

We continue to maintain sharp focus on operational efficiencies, drive cost optimizations, capacity utilization, and productivity improvements, which will help us navigate through market challenges and remain steadfast in adding value to our shareholders.

Company registered Profit After Tax (PAT)of Rs