GRM Overseas Shares Surge After Declaring Financial Results For Q3FY25

The shares of GRM Overseas Ltd rose by 0.15% on Friday from Rs 240.85 to Rs 241.15. The stock price is currently lower than its 52-week high of Rs 288.60 and higher than the low of Rs 114.15. The company now has a market capitalization of over Rs 1,400 crore. The company's advanced financial performance and multilevel marketing initiatives continue to increase investor trust.

GRM Overseas reported quarterly results of Q3FY25 for the company highlighting a net revenue increase of 18% to Rs 371.24 crore from Rs 319.49 crore in Q2FY25. Quarter Net profit grew by 47% to Rs 13.54 crore during the same period. The net sales for the period of nine months ending December 2024 (9MFY25) recorded a 17% increase to Rs 1,056.81 crore and a net profit of Rs 40.76 crore was earned accounting for a 3% increase to the same period in the previous financial year.

Mr. Atul Garg, Managing Director, said: "During Q3FY25, the company reported a total revenue of Rs. 382 Crores, registering a growth of 19% QoQ with EBITDA margin improving by 114 bps QoQ to 6.1%. Our exports business is progressing well, and as per our growth strategy, we are looking to enter newer geographies through partnerships with distributors and penetration of our own brand "Tanoush". Under GRM Foodkraft's flagship brand 10X, we offer a wide range of staples like basmati rice, atta, and oil, which have been widely accepted in Tier II and Tier III cities. The Foodkraft business has grown remarkably by 1.7x to Rs 459 Crores in 9MFY25. The company will be adding range of products under its modern brand, Faashta, focussing on ready-to-cook and ready-to-eat offerings such as biryani kits, noodles, dosa & idli mix and poha."

"Post the successful fundraising in August 2024, with prominent investors coming on board, the company is poised for growth through acquisitions and strengthening the professional leadership team. The strategic investment in Rage Coffee aligns perfectly with our vision to drive growth in digital-first, healthfocused, and lifestyle brands," he added.

'With the onboarding of Barun Prabhakar as the Group Chief Marketing Officer, the company is optimistic to achieve the target of high single digit market share in the food FMCG industry in India. The company is taking all the right initiatives and steps towards becoming a prominent player in the Indian FMCG industry," Mr. Atul Garg added.

The business's stock showed healthy returns with the company earning an ROE of 19% while the ROCE was 13%. In the last five years alone, the stock has returned over 2,100% multibagger returns and over the last ten years, this figure rose to an overwhelming 5,350%. This reflects the strong earning potential the stock has along with very high investor interest.

With its 10X brand, GRM Overseas is also making headlines in the FMCG industry. It recently revamped the brand with new packaging and a high-budget CGI video featuring Bollywood actor Salman Khan as the brand's new face. The advertising campaign has created a lot of buzz online, which indicates the effectiveness of the brand in so far as quality, innovation, and modern packaging are concerned. With the Bollywood star ambassador, 10X is bound to get greater visibility and customer interest which will help enhance its stake in the very competitive Indian FMCG sector.

GRM Overseas Ltd has made public its H1FY 25 and Q2FY 25 financial results and revenue figures during the international expansion of the company into the Chilean market. As prudent results, they show the company's growth in revenue as well as profitability. In Q2 FY25 GRM Overseas's revenue went upwards a notch from Rs 210.3 crore recorded in the same quarter last year to Rs 320.2 crore. Year-on-year record growth has been witnessed in the company's performance. The net profit of the Company in Q2FY25 surged to Rs 9.19 crore, an increase compared to Rs 6.62 crore recorded in Q2 FY24. During H1 FY25 the company generated revenue net of Rs 695.47 crore a record performance when compared to revenue generated during H1 FY24 of 536.27 crore. Net profit figures surged as well recording Rs 27.21 crore compared to Rs 24.06 recorded in H1 FY24.

Overall, the shares together carry a return on equity (ROE) of about 19 per cent and a return on capital employed (ROCE) of 13 per cent confirming the sound performance of the company and the trust it earns from its investors.

To further cement its market leadership role, GRM Overseas understood the need to enter into a business arrangement with Supermercados Central Ltda, one of the important retail players in Chile. Through this collaboration, GRM Overseas will launch its Tanoush basmati rice brand in Chile. Tanoush will be sold in 1kg and 5kg packs and be distributed by Exclusively Supermercados Central Ltda's distribution network making it possible for GRM to boost its visibility in South America.

According to the pact, Supermercados Central Ltda will be the sole distributor for GRM Overseas products in Chile, in this case, taking advantage of its geographical knowledge to increase the brand's competitiveness in the market. This partnership is fully in line with GRM Overseas plans of growth in terms of penetration of new international markets, expansion of brand presence and strategic growth through partnerships.

As part of the recent international growth story, GRM Overseas has reported about revamping the packaging of the already popular 10X brand whose face is Bollywood actor Salman Khan. This update on the brand is for the purpose of improving the presence of the brand within India and outside India as well with the consumers getting exposed to a new design that is modern and colourful.

The newly revised packaging featuring Salman Khan addresses the brand's quality and authenticity commitments on its entire 10X product range consisting of basmati rice, flour, as well as biryani kits in regional varieties such as Moradabadi, Hyderabadi, and Lucknowi ready to be cooked. In the scope of activities of GRM Overseas, G.K. and F.B.R. are active in the production of grow-out as well as non-grow-out grains and grains, namely Attas flour products Shakti Chakki Fresh and Basmati rice.