Shares of KRBL, which owns India Gate basmati rice, crashed over 10 percent on Wednesday on the back of lower margins and a sequential decline in profit and revenue in the quarter ended March 2023.
The stock fell as much as 10.2 percent to its day's low of ₹362.90. It is now just 19 percent away from its 52-week high of ₹449.40, hit on December 14, 2022, and has gained over 8 percent from its 52-week low of ₹198, hit on June 20, 2022.
The company's net profit rose just 8 percent YoY to ₹118 crore versus ₹109 crore in the year-ago period. However, on a sequential basis, the profit fell almost 50 percent from ₹205.27 crore in the December quarter.
Meanwhile, its revenue rose around 30 percent YoY to ₹1,280 crore from ₹987.40 crore, a year ago. Sequentially, the revenue fell nearly 17 percent from ₹1,535.99 crore in the previous quarter.
However, the company's EBITDA margin fell to 11.2 percent in the quarter under review from ₹16.5 percent in the same quarter last year. Its EBITDA also declined 11.5 percent Yoy to ₹143.9 crore.
"Margins were lower due to a higher share of the bulk non-basmati export sale (11 percent as against 7 percent of rice sales) where the original contract was canceled and goods had to be sold at lower realization in a different country," the company said in its investor presentation.
It further added that Basmati realisation grew by 17 percent compared to Q4 FY22, but it was offset by a corresponding 24 percent rise in rice input costs.
It also informed that the number of households consuming KRBL's India Gate brand crossed the milestone of 1 crore in March.
The stock has gained over 82 percent in the last 1 year but is down 6 percent in 2023 YTD.