Anil Mittal, chief managing director, KRBL, in an interview to CNBC-TV18 says the company posted flat EBIDTA and sales numbers due to a 15,000 tonne contract dispute in Q2 and Q3. This dispute, Mittal adds, got cleared only in Q4, leading to an sluggish bottomline.
On the threat from Vietnam rice exporters, Mittal says the company will not see any impact at all. Mittal explains that the company is primarily into basmati rice and the rice coming from Vietnam is non-basmati, hence, its international sales will be unaffected.
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The International Rice Research Institute earlier this month said that rice exports from India will see a slump due to supplies from Vietnam, Myanmar and Pakistan.
Below is the edited transcript of Mittal’s interview to CNBC-TV18.
Q: Could you tell us why despite a flat earnings before interest, taxes, depreciation, and amortization (EBITDA) performance the net profit is down so much?
A: Our bottom-line in Q4 has almost been the same. What happened is that we had a 15,000 tonne of contract which was in dispute in Q2 and Q3. We got it settled in Q4 because the dollar was in our favour and that is why we agreed to supply them the quantity. If one looks at the bottom-line, it is almost the same. We covered in the dollar appreciation.
Q: What about sales in terms of volumes and realizations? What did you clock this quarter?
A: The sales this quarter is Rs 492 crore versus Rs 499 crore quarter on quarter.
Q: How did you do in the export as well as the domestic market?
A: Domestic and exports both were very good. Domestic sales this quarter was Rs 343 crore and export this quarter was around Rs 130 crore.
Q: What is the export situation looking like right now because two weeks back also we had news that the Vietnam producers have really flooded the market – how is the situation been now?
A: We are primarily in to basmati rice. When one talks of Vietnam they talk of non basmati rice. As far as KRBL is concerned, we are very small player in non-basmati rice. Our main focus is on basmati rice. So, Vietnam does not have any impact on our sales internationally.