LT Foods (LTFOODS) Q4 07/08 earnings summary

Executive summary

• FY08 standalone sales and other income reached Rs 57,782.98 lakh, PBT Rs 3,161.05 lakh and PAT Rs 2,822.19 lakh; reported growth indicators were 19%, 36% and 37%, respectively.

• Growth came alongside the Kusha acquisition, higher rice-milling capacity and expansion of domestic distribution; a 15% dividend was recommended.

Financial highlights

• Standalone sales and other income rose from Rs 48,584.19 lakh in FY07 to Rs 57,782.98 lakh in FY08; PBT increased from Rs 2,326.70 lakh to Rs 3,161.05 lakh and PAT from Rs 2,058.43 lakh to Rs 2,822.19 lakh.

• Consolidated sales were Rs 69,506.89 lakh and net profit Rs 3,281.61 lakh; consolidated EPS was Rs 14.74 vs Rs 12.77.

• Export revenue rose to Rs 24,629.33 lakh from Rs 18,078.32 lakh; domestic revenue reached Rs 32,929.62 lakh vs Rs 30,335.32 lakh.

Outlook and guidance

• Export revenue target set at Rs 400 crore for the year ahead, with growth expected from North America, Europe and the Middle East.

• FY08–09 strategy emphasized branded exports over private-label business to support stability and higher export-segment profitability.

• New packaging lines and reclosable small packs were being added to meet demand; R&D was preparing value-added rice products for launch over the next two years.