GRM Overseas logs 350% yoy growth in Q3 PAT at Rs27cr; Stock dives 5%

25 Jan 2022 , 09:16 AM

GRM Overseas Limited, one of India’s leading basmati rice exporteRsand a growing consumer staples player has announced the financial results for the third quarter and nine months ended 31st December, 2021.

Key Highlights

• Total Revenue at Rs297cr in Q3 FY22 as against Rs214cr reported in Q3 FY21, a 39.0% yoy growth; During 9M FY22 period, GRM reported total revenues at Rs772cr as against Rs503cr in 9M FY21, a 53.5% yoy growth
• GRM Foodkraft (incorporated in July 2020) under its growing 10X brand reported a revenue of Rs78cr and Rs132cr in Q3 FY22 and 9M FY22, respectively, as against Rs58cr revenue reported in FY21
• Absolute EBITDA at Rs23cr grew by 100.8% yoy in Q3 FY22 with an EBITDA Margin of 7.8%; During 9M FY22, EBITDA was at Rs82cr, a growth of 79.3% yoy with the Company reporting an EBITDA Margin of 10.6% during the said period
• GRM reported PAT of Rs27cr as compared to Rs6cr in Q3 FY21, a 350% yoy growth; In 9M FY22, PAT was at Rs69cr, a significant growth of 158.2% yoy as against Rs27cr in 9M FY21
• The Company Board of DirectoRshave proposed an Interim Dividend of 50% i.e., Rs1.00 per equity share of Face Value of Rs2 per equity share for FY22

Speaking about the performance, Atul Garg, Managing Director, said, “The performance during the current financial year till date has been in line with our anticipated goals. GRM has been showing continuous improvement both in terms of operational and financial fronts demonstrating its strong managerial skills.

With the incorporation of “GRM Foodkraft Private Limited” a majority owned subsidiary of GRM, the Company has been expanding its domestic footprints through its own “10X” brand by pushing its presence both in General trade and Modern trade. The Company’s tie-up with around 125+ distributoRsand around 103,545 Kirana stores and also availability of its products at various modern trade and ecommerce platform such as Jio Mart, udaan, Amazon India, ElasticRun, Walmart India, etc among otheRswill help it strengthen 10X brand presence and product reach while keeping it competitive and driving its revenue and profitability.

The Company proudly upholds its tradition of bringing world-class products to consumeRsand is strategically introducing various Direct-to-Consumer (D2C) products enabling it to reach a wider consumer base in the domestic market. The Company recently expanded its D2C product offerings by adding Ready-to-Cook Biryani Kit in December 2021 under its growing 10X brand portfolio.

Our focus is on improving the Company’s brand visibility and are well poised to meet the increasing demand and move up in the food value chain by creating India’s largest and trusted standalone consumer staples brand. With more high margin products likely to be introduced in coming quarters, GRM is well-positioned to enter into a new era of growth and to create maximum value for all our stakeholders.”

On Tuesday early morning trade, GRM Overseas was trading at Rs780.85 per piece lower by 4.99% on the BSE.