LT Foods witness stellar Q2 earnings with PAT rising by 64% to Rs77cr

In the latest quarter, the company posted a consolidated net profit of Rs77cr rising by 64% from Rs47cr profit recorded in the same quarter of the previous year.

Oct 30, 2020 03:10 IST India Infoline News Service

LT Foods
Dawaat basmati rice manufacturer, LT Foods, was trading at Rs52.90 per piece down 3.56% on Sensex at around 3.25 pm. The stock has touched the day's high and low of Rs56.80 per piece and Rs52.10 per piece respectively. LT Foods was in focus on Friday after the company announced its financial performance for the quarter ended September 2020 (Q2FY21).

In the latest quarter, the company posted a consolidated net profit of Rs77cr rising by 64% from Rs47cr profit recorded in the same quarter of the previous year.

While LT Foods records total revenue of Rs1,218cr in the quarter under review, increasing by 24% from Rs984cr a year ago same period.

EBITDA increased by 39% yoy to Rs160cr in the quarter, while margins stood at 13.1% expanding by 140 basis points on a year-on-year basis.

Ashwani Arora, Managing Director & CEO said, “We have delivered yet another strong quarter with growth across our segments, as demand for ‘In-Home’ consumption remained strong during pandemic while ‘Out of home’ consumption stayed under stress."

Arora added, " We were able to capture the share of increased growth with the combination of the Strategies adopted by the Company and efforts of our People in implementing them along with investment in our strong brands, robust distribution network, supply chain. With the Farm to Fork approach, the Company has demonstrated the strength of the business in these unprecedented times. We are confident that the Company will continue this momentum of growth going forward as well.”

For the first half (April - September) of FY21, the company's gross margins expanded by 175 basis points from 27.4% to 29.1% in 1HY FY21 on Y-o-Y basis. This is on account of change in brand mix towards higher gross margin products and the impact of lower input cost. The Company saw double-digit growth in the Premium segment across geographies.

In the six months, the company's EBITDA margins also expanded by 96 bps to 13.2% vs. 12.2% last. The other expenses as a percentage to sales were up by 80 bps on account of variable cost for increased sales, professional charges for

LT Foods said, overall Profit Margins also expanded by 185 basis points to 6.6% in 1HY FY21 and by 155 basis points on Y-o-Y in Q2FY21, led by a reduction in finance cost. Management expects the input prices to remain stable going forward as the forecast on harvest and monsoons is good.

Related Story