India’s KRBL Ltd on Tuesday said its fourth-quarter profit jumped more than 8% on strong domestic demand for its India Gate-branded basmati rice.
The company’s consolidated net profit rose to 1.18 billion rupees ($14.27 million) for the quarter ended March 31, from 1.09 billion rupees a year ago, it said in an exchange filing.Total revenue from operations rose almost 30% to 12.8 billion rupees, while revenue from its mainstay agricultural segment increased 31.9%.KRBL said that revenue from its India operations rose almost 32% to 9.83 billion rupees, boosted by strong distribution growth and increased sales of its India Gate basmati rice brand.
The company, which also operates in the Middle East and Europe, saw international demand rise 18% to 3.31 billion rupees during the quarter.Top exporters told Reuters in November that India’s premium basmati rice exports are likely to jump 15% in 2022/23 as buyers in the Middle East build their inventories.The company benefited from a jump in revenue from its agricultural segment, which produces rice products and contributed 98.7% to the total revenue during the quarter.
India, the world’s biggest exporter of rice, reported record-high rice exports in 2022 despite government curbs on overseas sales.Earlier this month, LT Foods, which owns the rival Daawat brand, reported a 79% increase in domestic basmati rice sales.Shares of the company closed 0.37% higher ahead of results. ($1 = 82.6722 Indian rupees) (Reporting by Ashna Teresa Britto and Manvi Pant; Editing by Sonia Cheema)