BENGALURU, Oct 30 (Reuters) – Indian rice producer and exporter LT Foods LTOL.NS reported a 74.3% surge in quarterly profit on Monday, boosted by strong demand for its basmati rice.

The company’s consolidated profit rose to 1.56 billion rupees ($18.74 million) in the quarter ended Sept. 30, from 895 million rupees, a year earlier.

Consolidated revenue from operations rose more than 14% to 19.78 billion rupees, aided by a 23% growth in the company’s core basmati and other specialty businesses.

Total expenses rose about 12% to 17.92 billion.

The company said that increased investment in its Daawat brand basmati rice, marketing and market share gains have led to margin expansion in its core segment.

“The market share of Daawat brand in India surged to 30.2%, increasing 160 basis points in the quarter,” said Managing Director and CEO Ashwani Arora.

India, the world’s biggest exporter of rice, imposed a $1,200 per ton minimum export price (MEP) on basmati rice shipments in August to cool local prices.

It, however, reduced the minimum export price to $950 per metric ton this month, boosting expectations that the move will reinstate the competitiveness of Indian basmati rice shipments in global markets.

Shares of LT Foods rose as much as 8.6% after results before paring gains.

($1 = 83.2260 Indian rupees)

(Reporting by Ashna Teresa Britto; editing by Eileen Soreng)

Published Date: October 30, 2023