LT Foods (LTFOODS) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue rose 7% YoY to Rs. 4,184 crore; EBITDA increased 21% to Rs. 509 crore and PAT rose 45% to Rs. 199 crore.

• Growth reflected stronger consumer business, international markets and organic foods, alongside improved margins and lower borrowings.

• Operations continued through COVID-19 lockdowns with no significant disruption; home consumption and online demand gained traction.

Financial highlights

• Consolidated revenue from operations was Rs. 4,184 crore versus Rs. 3,915 crore; gross profit reached Rs. 1,117 crore, up 14% YoY.

• EBITDA was Rs. 509 crore versus Rs. 421 crore; EBIT Rs. 417 crore versus Rs. 352 crore; PBT Rs. 281 crore versus Rs. 214 crore.

• PAT increased to Rs. 199 crore from Rs. 137 crore; EPS was Rs. 5.77 versus Rs. 3.96.

• Standalone revenue was Rs. 2,378 crore, up 7.6%; standalone PAT rose 56.3% to Rs. 85 crore and EPS to Rs. 2.66.

Outlook and guidance

• Priorities: grow core basmati, expand organic and health/convenience foods, improve margins and ROCE, and strengthen financial metrics.

• Plans include wider distribution, more value-added products and higher-margin mix; growth engines include Daawat Cuppa Rice, Kari Kari, fortified rice, sauces and ready-to-heat products.

• FY21 plans included expanding Kari Kari into more Indian channels and international markets; broadening Cuppa Rice distribution after its Indian Railways contract.