LT Foods (LTFOODS) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue for H1 FY25 grew 12% year-over-year to INR 4,222 crores, driven by increased sales in Basmati, specialty, convenience, and health segments, supported by brand investments and expanded distribution.

• Gross profit margin expanded by 160 bps to 33.8% in H1 FY25 due to lower input costs; EBITDA rose 7% to INR 515 crores, though EBITDA margin declined by 50 bps to 12.2% due to higher freight costs.

• PAT for H1 FY25 rose 4% to INR 306 crores; EPS up to INR 8.71; net debt reduced to INR 546 crores.

• Un-audited standalone and consolidated financial results for H1 FY25 were approved with no material misstatements; a 3rd interim dividend of ₹0.50 per share was declared.

Financial highlights

• H1 FY25 revenue: ₹4,222 crore (up 12% YoY); Q2 FY25 revenue: ₹2,134 crore (up 7% YoY); H1 FY25 gross profit: ₹1,427 crore (up 17% YoY); H1 FY25 EBITDA: ₹514 crore (up 7% YoY).

• H1 FY25 cash profit increased 7% to INR 393 crores; return on capital employed at 20.8% and return on equity at 17.1%.

• Debt-to-equity ratio stable at 0.2; debt-to-EBITDA at 0.8; current ratio improved to 2.5.

• Net working capital days increased to 195 from 174 year-over-year.

• Consolidated net profit for H1 FY25 was ₹30,589.71 lakhs, up from ₹29,471.24 lakhs year-over-year; EPS (consolidated, basic) for H1 FY25 was ₹8.68.

Outlook and guidance

• Management expects 10-11% volume growth and EBITDA margin around 12% for FY25; targeting 14-15% EBITDA margin in the next four years through premiumization and product expansion.

• Freight costs expected to normalize from Q4 FY25 onwards; gross margins targeted to reach 34-35% as premium and organic mix increases.

• RTE/RTC segment expected to grow at 33-35% CAGR over the next five years; new US facility coming online in 3-4 months.

• Management remains confident about recovery of a significant insurance claim, with ongoing legal proceedings expected to resolve the matter.