Indian basmati rice processor KRBL's Q3 profit drops on weak export demand

KRBL

13/02/2024 09:59

BENGALURU, Feb 13 (Reuters) - KRBL  KRBL.NS  reported a
nearly 35% drop in third-quarter profit on Tuesday, hit by a
weak demand for its India Gate basmati rice brand in
international markets, leading to a 6.4% decline in its shares.
    Consolidated net profit was 1.34 billion rupees  ($16.1
million) for the quarter ended Dec. 31, compared with 2.05
billion rupees a year earlier. The company marked its second
consecutive quarterly profit decline, following five quarters of
growth.
    Export revenue slumped 47%, the company said in an exchange
filing. Total revenue from operations fell 6.4% to 14.37 billion
rupees.
    KBRL earns more than two-thirds of its revenue from the
Middle East, the world's largest consumer of basmati rice.
    Revenue from the agricultural segment, which includes India
Gate basmati rice brand, non-basmati rice, seed and bran,
declined about 7%. The segment contributed more than 90% of its
total revenue. 
    Earlier this month, LT Foods  LTOL.NS , which owns rival
Daawat brand, posted a nearly 37% jump in quarterly profit.
    
($1 = 83.0075 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))