Chamanlal has been reporting very good nos. I am including notes from their last couple of calls below.
FY24Q2
- Realizations increased from 85 in Q1 to 90/kg in Q1, export volumes increased by 14% QoQ (export sales growth of 20% vs 4.5% decline in domestic sales)
- 35k tons in Q2, EBITDA: Rs. 10/kg (which is very high according to management)
- Focus is now on increasing domestic sales, especially with MEP problems
- The shipments of parboiled rice were impacted in September
- APAC region contributed 40%, Middle East 40% and America & Europe contributed 20%
- Israel exports are intact and hasn’t seen any pressure
- Crop is 15% higher than last year. Have procured 10,000 tonnes of pesticides free rice
- Expect Q3 to be more favorable because company have procured rice at lower level which will lead to increased profitability
- 50% of the total procurement is already done and procurement has happened at favorable prices
- If basmati minimum export prices had stayed at $1200/tonne, there would have been severe impact, but because of reduction in MEP to $850/tonne there are no problems currently
FY24Q3
- Export realizations increased from 90/kg in Q1 to 93/kg in Q3, export volumes increased by 10% YOY and 37% QoQ (export sales growth of 16% vs 13.2% decline in domestic sales). Are opportunistic about selling between domestic vs exports
- 39k tons in Q3, EBITDA: Rs. 13/kg
- Branded sales (Maharani, Mithas and Begum) comprised 12% of 9MFY24 sales
- Value-added segment (Diabetes, Brown Rice) grew by 167% YoY during 9MFY24
- Have started advertising on e-commerce websites
- Procurement prices are 25-30% higher this year
- Basmati prices are decreasing, however their inventory is mapped to sales
- EBITDA margin guidance: 11-14%
- Small packing sales (<=5kg): 35% of sales
- Inventory Dec 2024: 626 cr. (Have more orders than inventory)
- Make quotation on FOB prices, make shipments on CIB basis
- Yemen, Israel are currently impacted
- Deals with House of Spices in USA
- Will use cashflows generated to grow business by investing more in working capital
- Will target export of other commodities like Peanuts, sesame seeds, haldi, etc. from Gandhidham unit
Disclosure: Invested (position size here, no transactions in last-30 days)
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