BENGALURU, Feb 13 (Reuters): KRBL reported a nearly 35 per cent drop in third-quarter profit on Tuesday, hit by a weak demand for its India Gate basmati rice brand in international markets, leading to a 6.4 per cent decline in its shares.
Consolidated net profit was 1.34 billion rupees ($16.1 million) for the quarter ended Dec. 31, compared with 2.05 billion rupees a year earlier. The company marked its second consecutive quarterly profit decline, following five quarters of growth.
Export revenue slumped 47 per cent, the company said in an exchange filing. Total revenue from operations fell 6.4 per cent to 14.37 billion rupees.
KBRL earns more than two-thirds of its revenue from the Middle East, the world's largest consumer of basmati rice.
Revenue from the agricultural segment, which includes India Gate basmati rice brand, non-basmati rice, seed and bran, declined about 7 per cent. The segment contributed more than 90 per cent of its total revenue.
Earlier this month, LT Foods which owns rival Daawat brand, posted a nearly 37 per cent jump in quarterly profit.
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