India’s LT Foods posted a bigger profit for the twelfth consecutive quarter on Thursday, bolstered by strong demand for its basmati rice.
The company, which makes ‘Daawat’ and ‘Royal’ basmati rice, said consolidated net profit increased 11.5% to 1.53 billion rupees ($18.3 million) in the April-June quarter.
According to official data, India’s basmati rice exports grew by 13% to $1.04 billion from April to May, highlighting strong performance in international markets during the quarter.
LT Foods, whose biggest export market is the United States, said revenue from operations rose about 16% to 20.71 billion rupees. It does not segregate its revenue by segments or geography.
India plans to lower the floor price for basmati rice exports as rice inventories hit a record high, helping it retain market share in the face of Pakistan’s record exports.
This could benefit rice exporters, including LT Foods and its rival KRBL, which makes ‘India Gate’ basmati rice. KBRL is due to announce its results next week.
LT Foods’ shares were off 0.5% after the results, trimming their year-to-date gains to about 42.5%. KBRL’s shares were down 3.5% on the day and are off 18% this year.
($1 = 83.7026 Indian rupees)
