KRBL shares drop over 6% after Q1 profit declines to Rs 8,656 lakh

By Aditya Bhagchandani Published on August 1, 2024, 10:20 IST

KRBL’s shares fell more than 6% on Wednesday following the release of its Q1 results, which showed a significant drop in profit due to weakened demand for its basmati rice.

Q1 FY25 Financial Highlights

Net Profit: Declined by 55.5% to ₹8,656 lakh ($10.4 million) from ₹19,433 lakh a year ago.
Revenue from Operations: Decreased by 15.2% to ₹1,199 crore.
Agricultural Business Revenue: Fell by 16.1%, which includes all rice types except for seed and bran.

Market Conditions and Company Response

Export Controls: KRBL imposed export restrictions in July last year and continued them into 2024 to manage local prices ahead of the general elections. The Indian government is planning to lower the minimum export price for basmati rice to boost shipments amid high rice inventories and increasing competition from Pakistan.
Shares Trading: As of 10:17 AM, KRBL shares were trading 6.36% lower at ₹298.20 on the NSE.

Ahmedabad Plane Crash

Aditya Bhagchandani

Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.