LT Foods (LTFOODS) Q4 16/17 earnings summary

Executive summary

• FY2016-17 delivered 11.49% consolidated revenue growth, 11.18% operating EBITDA growth and 26% normalized PAT growth, supported by brand investment, new consumers and higher sales volumes.

• Strategy shifted beyond rice into organic foods, staples and convenience products, with expansion through new facilities, acquired brands and joint ventures.

Financial highlights

• Consolidated revenue from operations was ₹3,286.5 crore; total revenue was ₹3,322.1 crore, versus ₹2,979.6 crore in FY2015-16.

• Operating EBITDA rose to ₹403.4 crore from ₹362.8 crore; profit before prior-period, exceptional items and tax increased to ₹194.7 crore from ₹163.5 crore.

• Consolidated PAT was ₹128.7 crore versus ₹72.5 crore reported in FY2015-16; excluding the prior-year ₹44 crore exceptional fire-related loss, normalized PAT was ₹102 crore, making FY2017 growth 26%.

• Consolidated EPS was ₹4.40 basic and ₹4.39 diluted, versus ₹2.72 and ₹2.71, respectively; prior periods were restated for the 10-for-1 share split.

Outlook and guidance

• Focus remains on branded consumer, organic and value-added businesses in India and international markets, with margin improvement targeted through working-capital optimisation, procurement efficiency and process improvements.

• Five ecoLife organic ready-to-heat pouch products were planned for launch in the US, alongside new retort-processing capability at the Houston site; a rice-snack range was expected by end-2018.

• Management expected to launch ready-to-heat organic rice in the US in the next fiscal year and continue introducing differentiated staples and organic products.