KRBL Q3 results: Profit declines nearly 35% on weak export demand

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

Rice

Photo: Bloomberg

Reuters BENGALURU

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KRBL 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, which owns rival Daawat brand, posted a nearly 37% jump in quarterly profit.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 13 2024 | 4:50 PM IST

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