indian rice exporter krbl sees Q2 profit decline due to weak demand
Published on: November 9, 2023.
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KRBL, India’s leading exporter of branded basmati rice, experienced a 28.1% decrease in second-quarter profit due to weakness in its agricultural segment. The company’s consolidated net profit for the quarter dropped to 1.53 billion rupees, compared to 2.13 billion rupees the previous year.
The agricultural segment, which includes rice, furfural, seed, and bran, accounted for 95.2% of total sales and declined by 9.3%. This decline can be attributed to the imposition of a $1,200 per ton minimum export price (MEP) on basmati rice shipments in India, resulting in cooled local prices and potentially impacting rice exports.
To regain competitiveness in the global market, India lowered the minimum export price to $950 per metric ton in October. This adjustment is expected to bolster Indian basmati rice shipments.
KRBL’s total revenue from operations also saw a decrease of 8.03%, amounting to 12.13 billion rupees.
While KRBL has reported consistent profit growth in the past five quarters, this recent decline caused a 9.2% drop in the company’s shares following the earnings report.
Source: [Link to the source article on Nasdaq.com](https://www.nasdaq.com)
