Chamanlal is now focusing on its next growth phase and is planning to reach 2000 cr. sales in 18 months. Margins are down because of lower basmati prices, they are hoping for margins to revive from Q3 as they sell high priced inventory in Q2. Concall notes below.
FY25Q1
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Export volume grew by 38% to 35,000 tons , increased penetration in APAC, Middle East, and African markets
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Domestic business grew by 70% accounting for 13% of sales. Domestic business is less profitable
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EBITDA margins were impacted by lower basmati prices, geopolitical issues leading to some new contracts at relatively lower spreads (EBITDA/kg < 9). Confident of reaching EBITDA of 10/kg by end of FY25 as they will finish high cost inventory in Q2 and procure lower price rice/paddy
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EBITDA margins vary between 8-14%
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Inventory: 288 cr., Cash: 150 cr.
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Buyback of 20 lakh shares @300 totaling to 60 cr. (tender route: promoters will participate)
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Completed flooring of first unit and will operationalize it in 2-3 months. Can contribute 150 cr. additional quarterly revenues
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Non-basmati takes almost double amount of water vs Basmati and there are campaigns in Punjab is shifting from non-Basmati to Basmati rice
Disclosure: Invested (no transactions in last-30 days)
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