LT Foods climbs 5% higher as Q4 net profit jumps 79% YoY

Shares of LT Foods surged nearly 5 percent in early trade on May 19, as investors lapped up the scrip buoyed by the company’s strong performance for the quarter ended March.

In Q4, the parent company of the Daawat rice brand showcased a robust financial performance with substantial growth across all three key indicators of profit, revenue and profitability.

The company’s net profit witnessed a surge of 79.3 percent, reaching Rs 128.2 crore compared to Rs 72 crore in the same period last year. This significant increase was triggered by an increase in market share and uptake in volumes.

Additionally, the company’s revenue grew by 19.3 percent on year to Rs 1,821.4 crore aided by accelerated brand investments across all three business segments – basmati and other specialty rice, organic and convenience and health business.

The operational performance also improved as the EBITDA margin expanded 80 basis points to 10.8 percent in January-March from 10 percent in the year-ago period.

At 11.42 am, shares of LT Foods were trading at Rs 118.45 on the National Stock Exchange, up 2.20 percent.

Follow our live blog for all the market action

Trading volumes were also high as around 37 lakh shares changed hands on the exchanges, as against the one-month daily traded average of 19 lakh shares.

The company also plans to solidify its leadership position in key markets and grow its current market share further, with a five-year revenue compounded annual growth rate target of 10-12 percent. Along with that, the company also aims to expand EBITDA margin by 140-150 basis points within the next five years.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.???????????????