India Gate basmati rice producer KRBL's Q4 profit falls as expenses weigh

KRBL

20/05/2024 15:02

BENGALURU, May 20 (Reuters) - Indian exporter of branded
basmati rice KRBL  KRBL.NS  said on Monday its fourth-quarter
profit fell 3.3%, as higher expenses outpaced a steady demand
for its flagship product.
    KRBL's consolidated net profit fell to 1.14 billion rupees
($13.7 million) for the quarter from 1.18 billion rupees a year
earlier, marking its third consecutive quarterly profit decline
following five quarters of growth, according to LSEG data.
    The rice processing company known for its flagship brand
'India Gate' said its total expenses inched up to 11.74 billion
rupees from 11.64 billion rupees a year earlier, due to a rise
in cost of materials.
    The basmati rice producer's agricultural segment, which
includes India Gate basmati rice brand, non-basmati rice, seed
and bran, saw a 2.2% in revenue. The segment accounted for about
96% of the company's total revenue.
    KRBL's results come amid concerns due to prevailing
geopolitical tensions in the Middle East, which is the company's
key market, accounting for over 67% of basmati exports.
    It said total revenue from operations rose nearly 3% to
13.18 billion rupees.
    Peer LT Foods  LTOL.NS  reported a rise in quarterly profit
last week, boosted by strong demand for its basmati rice.
    KRBL recommended a final dividend of 4 rupees per share for
the financial year ended March 31, 2024.
    The company's shares fell 24% so far this year.


($1 = 83.2800 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Yagnoseni.Das@thomsonreuters.com))