Shares of rice miller KRBL fell more than 9% in early trading on May 31, a day after the company reported its fourth-quarter numbers. While revenues and profits are growing, the company’s turnover has fallen sharply.

The stock was trading at Rs 367.50 on the NSE at 10:30 am, down 8.9%. Volume was 1.4 million shares, 3.5 times the 20-day average.

KRBL’s March quarter revenue soared 29.6% year-on-year to Rs 1,279.7 crore, while net profit rose 8.2% to Rs 118 crore. However, the company’s EBITDA margin fell to 11.2% in the quarter from 16.5% in the previous year. EBITDA was Rs 143.9 crore, down 11.5% year-on-year.

“The lower profit margin is due to the higher share of bulk non-basmati export sales (11% versus 7% of rice sales), the original contract is cancelled, and the goods had to be sold in different countries with lower realizations,” the company said. Indicates its investor presentation.

The company added that Basmati achieved a 17% increase compared to Q4FY22, which was more than offset by a corresponding 24% increase in rice input costs.

To assuage investor concerns, KRBL said its Indian business was showing strong growth. In the fourth quarter, revenue from the domestic business stood at Rs 932 crore, driven by an 18% increase in volume. The number of households consuming KRBL’s India Gate brand crossed the 1 crore milestone in March.

In an interaction with CNBC-TV18, Ashish Jain, CFO of the company, informed that exports in Q1FY24 are expected to exceed Rs 500 crore, similar to the level seen in Q3. The Gujarat plant will start operations in the first quarter, while the Karnataka plant may be slightly delayed.

He expects margins to recover in Q1FY24, with full-year FY24 margins around 18%.

Shares of KRBL have risen more than 66% in the past year, outperforming its peers LT Foods and Kohinoor Foods. The stock currently trades at a historical P/E ratio of 12.142 times.