LT Foods Q4 earning stellar, logs 2-folds rise PAT; stock jumps 10%

Q4 PAT was aided by savings in finance cost.

May 29, 2020 12:05 IST India Infoline News Service

LT Foods
The Daawat-brand owner LT Food's March 2020 (Q4FY20) quarter, turned fruitful for the company as investors faith grew further in their business amid Coronavirus pandemic. The outbreak which has disrupted majority of businesses in India failed to impact LT Foods business as it posted robust growth in both top-line and bottom-line base.

In Q4, LT Foods consolidated net profit surged by a breathtaking 167% to Rs58cr compared to Rs22cr a year ago same period. Q4 PAT was aided by savings in finance cost.

Total income for the quarter was at Rs1,217cr, up by 20% from Rs1,018cr.

In Q3FY20, the company's net profit and revenue were at Rs48cr and Rs998cr respectively.

Consolidated gross profit was at Rs323cr higher by 29% yoy. While EBITDA surged by a whopping 54% to Rs150cr in Q4 versus Rs98cr in Q4FY19. The gross profit and EBITDA margin for the period stood at 26.5% and 12.3% respectively.

Talking about the financial performance, LT Foods  Managing Director & CEO Ashwani Kumar Arora said, “This quarter saw us continuing to show operational excellence in spite of challenges posed due to disruptions from COVID-19. The Company has been extensively working on its 3 strategic pillars of Growth, Margin Expansion and Strengthening the Financial metrics. The Company has been focusing on strengthening its brand, widening its distribution network and increasing brand penetration across all consumer segments."

Here's how FY20 was for LT Foods, as per the audit report:
  • Total Income at Rs4,184cr up 7% yoy
  • EBITDA at Rs509cr up 21% yoy
  • Profit After Tax at Rs199cr up 45% yoy
  • Earnings Per Share Rs5.8 up by 46% yoy
  • Cash generated from operation up by 365% at Rs477cr
  • Book value per share up by 11.5% at Rs50 per share
Stock price:
On Sensex, investors were highly bullish in LT Foods stock price as the stock clocked upper circuit limit of Rs26.75 per piece giving a 10% return on Friday.

At around 12.38 pm, LT Foods stock was trading at Rs26 per piece up by 6.78%. The stock opened at Rs25.85 per piece compared to the previous closing of Rs24.35 per piece.

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