(Reuters) -Basmati rice producer KRBL on Friday reported a rise in fourth-quarter profit, helped by the strong overseas demand for its rice products.
KRBL, known for its ‘India Gate’ brand of basmati rice, reported consolidated net profit of 1.54 billion rupees ($18 million) in the fourth quarter, up 35% from a year ago.
India had eased almost all curbs on non-basmati and basmati rice exports late last year to reduce surging inventories and regain market share.
The government had also removed minimum export price for basmati rice to help thousands of farmers who complained about a lack of access to lucrative overseas markets such as Europe, the Middle East and the U.S.
The move boosted export volumes as Indian basmati rice is now more competitively priced in global markets.
The company’s export revenue grew 45% in the fourth quarter. Increasing export revenue will partly contribute to margin improvement next year, it said.
KRBL’s agricultural segment, which includes India Gate basmati rice brand and non-basmati rice, saw a 10% rise in quarterly revenue. The segment accounted for nearly the company’s entire revenue during the quarter.
($1 = 85.5550 Indian rupees)
(Reporting by Shivani Tanna in Bengaluru; Editing by Shreya Biswas)
