BENGALURU: KRBL reported a nearly 35% drop in third-quarter profit on Tuesday, hit by weak demand for its India Gate brand of basmati rice in international markets, leading to a 6.4% drop in its shares.
Consolidated net profit was 1.34 billion rupees ($16.1 million) in the quarter ended December 31, compared with 2.05 billion rupees a year earlier. The company marked its second consecutive quarterly decline in profits after five quarters of growth.
Export revenue fell 47%, the company said in a statement to the stock exchange. Total revenue from operations fell 6.4% to 14.37 billion rupees.
KBRL derives 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, seeds and bran, decreased by about 7%. The segment contributed more than 90% of its total revenue.
Earlier this month, LT Foods, owner of rival brand Daawat, reported a nearly 37% jump in quarterly profit.