GRM Overseas Shares Jump 9% As Promoter Buys Stake of 73,000 Equity Shares

On Thursday, the shares of GRM Overseas opened higher on the BSE at Rs 148.00 apiece and surged to an intraday high of Rs 163.80 in the early trade.

The spike in the value of the company's shares following the announcement to the stock markets on June 10, 2024, that one of the company's promoters, Mr. Atul Garg, had purchased 73,000 equity shares at a cost of Rs. 2 apiece, or about 0.12% equity stake of GRM Overseas Limited's paid share capital.

Recently on 31st May, the company informed to stock exchanges that from Rs. 433.6 crore in Q4 FY23 to Rs. 405.9 crore in Q4 FY24, the total revenue on a consolidated basis has plummeted. Comparing Q4 FY24 to Q4 FY23, EBITDA was Rs. 21.8 crore as opposed to Rs. 20.9 crore. PAT margin for Q4 FY24 was 5.2%, while the company's net profit was Rs. 21.2 crore.

Commenting about the Q4 & FY24 performance: Mr. Atul Garg. Managing Director said, "We are delighted to present the financial performance for Q4 and FY24. During FY24, the Basmati rice export segment remained stable, generating a revenue of Rs. 1,012.00 Crore. Despite macro-economic challenges, government-mandated Minimum Support Price (MSP) restrictions, and the Red Sea crisis, GRM Overseas has maintained its position as a reliable supplier of premium Basmati rice, meeting the demands of discerning consumers worldwide. This consistency reflects our robust supply chain management, quality assurance practices, and strong relationships with international clients. Our margins were impacted by higher procurement costs and rising freight expenses. We anticipate an improvement in margins at the consolidated level, supported by the addition of better product categories in GRM Foodkraft and a modest growth in our export division."

"GRM Foodkraft reported a robust set of numbers where revenue is standing at Rs. 256.5 Crore for FY24 and EBITDA margin improving from 5.1% in FY23 to 6.5% in FY24. The margin improvement was driven by commanding premium prices in the domestic market and the expansion of our product portfolio. Our strategic efforts in targeting tier 2 and 3 cities and towns have started to show positive outcomes, as reflected in robust product uptake and consumer interaction. By utilizing both modern and traditional trade channels, we have successfully extended our reach and accessibility, reinforcing our presence across various segments of the domestic market," he added.

"During the fiscal year, GRM Foodkraft embarked on an ambitious journey of product diversification, launching various other food segments to cater to the evolving preferences of domestic consumers such as Edible Oil, Besan, Poha, Sooji, Maida, and Daliya. Particularly, our Edible Oil has received a very positive response in the market and is showcasing a positive demand trend. This strategic expansion not only broadened our product portfolio but also positioned us as a comprehensive solution provider in the food industry. By introducing new food segment in food products, we are poised to capitalize on emerging trends and consumer demands, driving sustained growth and profitability," Atul Garg stated.

"Looking ahead, we anticipate strong ground-level demand in the exports as well as domestic markets, as reflected in our recent order wins from the prestigious Sultanate of Oman of premium basmati rice. Our focus is on consolidating our position in both domestic and international markets, strengthening our brand presence in the domestic region, and enhancing operational efficiencies. By closely monitoring market dynamics and consumer behavior, we will continue to invest in product development, marketing initiatives, and distribution networks to sustain momentum and unlock new avenues for growth," Atul Garg added.

"At GRM Overseas, we view challenges as opportunities for growth and improvement. We are leveraging our expertise and innovative spirit to navigate these obstacles and emerge stronger than before. Our longstanding commitment to delivering quality products remains unwavering, and we are confident in our ability to overcome these macro challenges," he further added.