India Gate basmati rice producer KRBL tanks 10% post-March quarter numbers

KRBL share price:  Shares of KRBL, best known for its India Gate brand of basmati rice, which is the largest-selling rice brand in India, tanked as much as 10.11 per cent to Rs 362.90 apiece on the BSE on May 31, Wednesday. The company released its March quarter numbers on Tuesday, wherein it reported an over eight per cent rise in its consolidated net profit at Rs 117.98 crore against Rs 109.06 crore logged in the year-ago period.  Revenue from operations stood at Rs 1279.73 crore, up 29.6 per cent as against Rs 987.40 crore registered in the corresponding quarter of the preceding fiscal. 

The stock eventually ended at Rs 364.40, down 9.75 per cent.

Basic earnings per share (EPS) stood at Rs 5.01 for the quarter under review, against Rs 4.63 in the year-ago period.

KRBL said that revenue from its India operations rose almost 32 per cent to Rs 983 crore, boosted by strong distribution growth and increased sales of its India Gate basmati rice brand. The company, which also operates in the Middle East and Europe, saw international demand rise 18 per cent to Rs 331 crore during the quarter, Reuters reported.

Top exporters told Reuters in November that India's premium basmati rice exports are likely to jump 15 per cent in 2022/23 as buyers in the Middle East build their inventories, the news agency said. 

In its filing, the company said, "The Company's Joint Managing Director, Mr Anoop Kumar Gupta (JMD), had been detained and released on bail by the Directorate of Enforcement ('ED') pursuant to certain allegations against the Company, KRBL, DMCC (a subsidiary of KRBL Ltd.), and JMD.