LT Foods, an Indian company renowned for selling Daawat basmati rice, reported an impressive 79% surge in quarterly profit. This remarkable growth can be attributed to the strong demand for its packaged rice and favorable export prices.
In the quarter ending March 31, the rice producer experienced a significant surge in consolidated net profit. The figure rose to 1.28 billion rupees ($15.65 million), marking a substantial increase from the previous year’s 715.1 million rupees.
According to an exchange filing, the company reported a 31.26% growth in the number of households consuming its products, reaching 4.5 million by the end of the fiscal year 2023.
With a global reach, LT Foods exports its rice to over 60 countries, encompassing regions like the United States, Europe, the Middle East, and the Far East.
The surge in profit is attributed to the increase in prices of Indian rice exports, which reached a nearly two-year high by the end of February. Importers showed a preference for the Indian variety over pricier alternatives from hubs such as Thailand and Vietnam.
In the fourth quarter, the company witnessed a significant boost in consolidated revenue from operations, with a growth of over 19% to 18.21 billion rupees. This increase was primarily driven by a remarkable 30% year-on-year growth in the company’s basmati and other specialty segment.
Ashwani Arora, Managing Director and CEO, said, “Our India volume market share continues to increase and currently stands at 29.6% (annually).”
India, the largest global exporter of rice, achieved record-breaking numbers in the shipment of domestically produced rice in 2022, despite government restrictions on overseas sales.
Following the release of the results, shares of LT Foods experienced a 3.7% increase.