KRBL reported a nearly 35% 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% 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%, the company said in an exchange filing. Total revenue from operations fell 6.4% 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%. The segment contributed more than 90% of its total revenue.
Earlier this month, LT Foods, which owns rival Daawat brand, posted a nearly 37% jump in quarterly profit.