Indian rice exporter LT Foods Q2 profit surges on strong demand for basmati

LT Foods

30/10/2023 09:25

BENGALURU, Oct 30 (Reuters) - Indian rice producer and
exporter LT Foods  LTOL.NS  reported a 74.3% surge in quarterly
profit on Monday, boosted by strong demand for its basmati rice.
    The company's consolidated profit rose to 1.56 billion
rupees ($18.74 million) in the quarter ended Sept. 30, from 895
million rupees, a year earlier.
    Consolidated revenue from operations rose more than 14% to
19.78 billion rupees, aided by a 23% growth in the company's
core basmati and other specialty businesses.
    Total expenses rose about 12% to 17.92 billion. 
    The company said that increased investment in its Daawat
brand basmati rice, marketing and market share gains have led to
margin expansion in its core segment.
    "The market share of Daawat brand in India surged to 30.2%,
increasing 160 basis points in the quarter," said Managing
Director and CEO Ashwani Arora.
    India, the world's biggest exporter of rice, imposed a
$1,200 per ton minimum export price (MEP) on basmati rice
shipments in August to cool local prices. 
    It, however, reduced the minimum export price to $950 per
metric ton this month, boosting expectations that the move will
reinstate the competitiveness of Indian basmati rice shipments
in global markets. 
    Shares of LT Foods rose as much as 8.6% after results before
paring gains.


($1 = 83.2260 Indian rupees)

 (Reporting by Ashna Teresa Britto; editing by Eileen Soreng)
 ((AshnaTeresa.Britto@thomsonreuters.com;))