BENGALURU (Reuters) – KRBL on Thursday reported a 28.1% drop in second-quarter profit as India’s top exporter of branded basmati rice was hit by weakness in its mainstay agricultural segment.
Consolidated net profit at the ‘India Gate’ basmati rice maker fell to 1.53 billion rupees ($18.37 million) for the quarter, from 2.13 billion rupees a year ago.
The company’s agricultural segment, which includes agricultural commodities like rice, furfural, seed and bran, accounted for about 95.2% of total sales and fell 9.3%.
India, the world’s biggest exporter of rice, had imposed a $1,200 per ton minimum export price (MEP) on basmati rice shipments in August to cool local prices, a move that may have taken a hit on exports for rice producers and sellers.
However, it reduced the minimum export price to $950 per metric ton last month, expecting the move will reinstate the competitiveness of Indian basmati rice shipments in global markets.
The rice processing company said total revenue from operations fell 8.03% to 12.13 billion rupees.
For the preceding five quarters, KRBL has reported a rise in its profit.
KRBL shares fell as much 9.2% after earnings.
($1 = 83.2800 Indian rupees)
(Reporting by Yagnoseni Das in Bengaluru)