LT Foods, Chaman Lal, KRBL shed up to 4% as export duty on parboiled rice stays on

Shares of rice milling companies like LT Foods, KRBL, and Chaman Lal Setia Exports went down up to 4 percent on February 22 after the government extended the 20 percent export levy on parboiled rice beyond March 31.

So far this year, the stock of LT Foods and KRBL has declined 7-8 percent, while Chaman Lal Setia gained 0.5 percent. In comparison, the benchmark Sensex was flat-to-negative during the same period.

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In a notification, the finance ministry said that the 20 percent export duty will continue beyond March 31 without an end date. The levy on parboiled rice came into effect on August 25, 2023 till October 16, 2023 to maintain adequate stock and prices under check.

India’s rice production is estimated to have risen to 135.54 million tonnes in the 2022-23 crop year (July-June) from 129.47 million tonnes in the previous year, according to the agriculture ministry data.

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In Q3FY24, LT Foods consolidated net profit rose 52 percent year-on-year (YoY) to Rs 152.6 crore, while revenue from operations was up 9.1 percent to Rs 1,941.7 crore. Chaman Lal Setia’s total income, too, surged 32 percent on-year to Rs 355 crore, whereas net profit  jumped 85 percent to Rs 37 crore in Q3FY24.

However, KRBL’s revenue declined 6 percent YoY to Rs 1,437 crore in Q3FY24 and profits dropped 35 percent YoY to Rs 134 crore in Q3FY24.

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