Rice Exporter KRBL Reports Profit Decline in Q2 due to Soft Demand
Published on: November 9, 2023.
Filed under:
Bengaluru-based rice exporter, KRBL, reported a 28.1% decline in profit for the second quarter. The company, known for its ‘India Gate’ branded basmati rice, was negatively affected by weaknesses in its agricultural segment.
The consolidated net profit of KRBL dropped to 1.53 billion rupees ($18.37 million) for the quarter, compared to 2.13 billion rupees in the previous year.
The company’s agricultural segment, which includes agricultural commodities such as rice, furfural, seed, and bran, accounted for approximately 95.2% of total sales and experienced a decline of 9.3%.
India, the largest exporter of rice globally, implemented a minimum export price (MEP) of $1,200 per ton on basmati rice shipments in August to stabilize local prices. This change may have had a negative impact on rice exports for producers and sellers.
To regain competitiveness in global markets, the minimum export price was reduced to $950 per metric ton last month.
KRBL’s total revenue from operations declined by 8.03% to 12.13 billion rupees.
Although KRBL has reported a rise in profit for the preceding five quarters, its shares fell by as much as 9.2% following the release of these earnings.
For more information, please visit the source.
