Indian rice exporter KRBL posts Q2 profit drop on weak demand

KRBL

09/11/2023 09:14

BENGALURU, Nov 9 (Reuters) - 
    KRBL  KRBL.NS  on Thursday reported a 28.1% drop in
second-quarter profit as India's top exporter of branded basmati
rice was hit by weakness in its mainstay agricultural segment.
  
    Consolidated net profit at the 'India Gate' basmati rice
maker fell to 1.53 billion rupees ($18.37 million) for the
quarter, from 2.13 billion rupees a year ago.
    The company's agricultural segment, which includes
agricultural commodities like rice, furfural, seed and bran,
accounted for about 95.2% of total sales and fell 9.3%.
    India, the world's biggest exporter of rice, had imposed a
$1,200 per ton minimum export price (MEP) on basmati rice
shipments in August to cool local prices, a move that may have
taken a hit on exports for rice producers and sellers.
    However, it reduced the minimum export price to $950 per
metric ton last month, expecting the move will reinstate the
competitiveness of Indian basmati rice shipments in global
markets.
    The rice processing company said total revenue from
operations fell 8.03% to 12.13 billion rupees.
    For the preceding five quarters, KRBL has reported a rise in
its profit.
    KRBL shares fell as much 9.2% after earnings.
    
   
($1 = 83.2800 Indian rupees)

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