India's LT Foods reports first profit drop in 13 quarters as raw material costs rise

LT Foods

24/10/2024 10:20

Oct 24 (Reuters) - India's LT Foods  LTOL.NS  posted its
first profit decline in 13 quarters on Thursday, dragged down by
higher input costs despite a healthy demand for its basmati
rice, sending shares down 12%.
    The company, which makes 'Daawat' and 'Royal' basmati rice,
said consolidated net profit dropped 4.9% to 1.48 billion rupees
($17.6 million) in the July-September quarter from a year
earlier.
    The company reported a 8.4% rise in its overall expenses,
propelled by a 32.2% rise in cost of its raw materials.
    India's agricultural exports are facing challenges due to
rising shipping costs stemming from the Red Sea crisis, analysts
said.
    This has increased transportation expenses for exporters,
making it harder to stay competitive in the global market, they
added.
    LT Foods, whose biggest export market is the United States,
said revenue from operations rose 6.6% to 21.08 billion rupees.
The company does not segregate its revenue by segments or
geography.

($1 = 84.0460 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sumana
Nandy)
 ((Yagnoseni.Das@thomsonreuters.com;))