lt foods: q2 profit soars on strong demand for indian basmati rice
Published on: October 30, 2023.
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Indian Rice Producer and Exporter LT Foods Reports 74.3% Surge in Quarterly Profit
LT Foods, an Indian rice producer and exporter, announced on Monday a significant increase in quarterly profit, driven by high demand for its basmati rice. The company reported a consolidated profit of 1.56 billion rupees ($18.74 million) for the quarter ended September 30, a notable surge compared to 895 million rupees in the same period last year.
Consolidated revenue from operations also witnessed growth, rising more than 14% to reach 19.78 billion rupees. This increase was mainly attributed to a 23% growth in LT Foods’ core basmati rice and other specialty businesses.
Despite a 12% rise in total expenses, the company saw margin expansion in its core segment due to increased investment in the Daawat brand of basmati rice, effective marketing strategies, and market share gains. Ashwani Arora, the Managing Director and CEO of LT Foods, stated that the market share of the Daawat brand in India surged to 30.2%, an increase of 160 basis points in the quarter.
India, being the largest exporter of rice globally, had imposed a minimum export price (MEP) of $1,200 per ton on basmati rice shipments in August to stabilize local prices. However, this MEP was reduced to $950 per metric ton in the current month, leading to expectations that Indian basmati rice will regain its competitiveness in global markets.
Following the announcement of the company’s results, the shares of LT Foods initially rose by as much as 8.6%, before paring gains.
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Source: https://www.zawya.com
