Indian basmati rice maker LT Foods' Q1 profit jumps on strong demand

KRBL

25/07/2024 09:20

BENGALURU, July 25 (Reuters) - India's LT Foods
 LTOL.NS  posted a bigger profit for the twelfth consecutive
quarter on Thursday, bolstered by strong demand for its basmati
rice.
    The company, which makes 'Daawat' and 'Royal' basmati rice,
said consolidated net profit increased 11.5% to 1.53 billion
rupees ($18.3 million) in the April-June quarter.
    According to official data, India's basmati rice exports
grew by 13% to $1.04 billion from April to May, highlighting
strong performance in international markets during the quarter.
    LT Foods, whose biggest export market is the United States,
said revenue from operations rose about 16% to 20.71 billion
rupees. It does not segregate its revenue by segments or
geography.
    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.
    This could benefit rice exporters, including LT Foods and
its rival KRBL  KRBL.NS , which makes 'India Gate' basmati rice.
KBRL is due to announce its results next week.
    LT Foods' shares were off 0.5% after the results, trimming
their year-to-date gains to about 42.5%. KBRL's shares were down
3.5% on the day and are off 18% this year.
 
 ($1 = 83.7026 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Savio
D'Souza)
 ((Yagnoseni.Das@thomsonreuters.com;))