India's LT Foods Q4 profit rises on strong demand for basmati

LT Foods

17/05/2024 13:37

BENGALURU, May 17 (Reuters) - LT Foods  LTOL.NS , an
Indian fast-moving consumer goods company, reported its eleventh
straight quarterly profit rise on Friday, boosted by strong
demand in its mainstay business, basmati rice. 
    The rice exporter's consolidated profit rose 16%
year-on-year to 1.49 billion rupees ($17.9 million) in the
quarter ended March 31.
    Consolidated revenue from operations rose nearly 14% to
20.75 billion rupees.
    Revenue from the company's core basmati and other specialty
rice business, which alone form more than 85% of revenue, rose
15% during the quarter. Basmati is a premium long-grain variety
famed for its aroma.
        LT Foods, which is known for its basmati rice brands
'Daawat' and 'Royal', has the United States as its biggest
market by revenue at 39%, followed by India at 31%, according to
its latest annual report.
    The company's results come at a time when Indian rice
exporters are grappling with buyers delaying purchases due to
increased freight costs caused by disruptions in the Red Sea.
They also face competition from Pakistan, which is offering the
grain at competitive prices amid ample supply. 
    India is expected to see a normal monsoon in 2024,
benefitting nearly half of the country's farmland, which has no
irrigation cover and depends on the annual June-September rains
to grow crops such as rice.
    LT Foods shares ended 0.7% lower at 226.90 rupees after the
results.
    


($1 = 83.3663 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Eileen
Soreng)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))