Indian basmati rice maker KRBL posts lower Q1 profit on weak demand

KRBL

31/07/2024 13:22

BENGALURU, July 31 (Reuters) - India's KRBL  KRBL.NS 
reported its fourth straight quarterly profit fall on Wednesday,
hurt by slower demand for its basmati rice.
    KRBL, which makes the 'India Gate' brand of basmati rice,
said its consolidated net profit fell 55.5% to 865.6 million
rupees ($10.4 million) in the quarter ended June.
    Revenue from operations fell 15.2% to 11.99 billion rupees.
    The world's biggest rice exporter imposed various curbs on
exports in July last year and continued them in 2024 in an
effort to keep local prices in check ahead of the general
elections held in April-May.
    However, India plans to lower the floor price for basmati
rice exports as rice inventories hit a record high, helping it
retain market share in the face of Pakistan's record exports,
Reuters reported earlier this month. New Delhi is expected to
lower the basmati rice's minimum export price (MEP) to $800-$850
a metric ton, down from $950 a ton, to boost shipments, the
report said. 
    Revenue from its agricultural business, which includes all
rice types besides seed and bran, fell 16.1%.    
    KRBL's shares ended up 1.1% ahead of the results, trimming
their year-to-date losses to 15.1%. 


($1 = 83.6700 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Savio
D'Souza)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))