LT Foods records 30% YoY growth in Q3 PAT; margins contract due to various cost pressures

LT Foods reported 30% rise in net profit to Rs 100 crore on a 31% increase in total revenue to Rs 1,792 crore in Q3 FY23 over Q3 FY22.

The company said that the revenue growth was aided by accelerated brand investments across all 3 business segments - Basmati & Other Specialty Rice, Organic and Convenience and Health business.

While the company's gross profit was Rs 571 crore (up 25% YoY), EBITDA was at Rs 179 crore (up 19% YoY).

Gross profit margin, however, contracted by 144 bps on account of increase in input cost and reduction in freight cost. EBITDA margins contracted by 103 bps due to due to increase in input cost and reduction in freight cost.

Ashwani Arora, managing director & CEO, said: our India market share continues to increase and currently stands at 29.4% according to the AC Nielsen survey. On a YoY basis, the category climbed by 15.7%, while the number of homes eating Daawat rose by 39% to 40 Lakh households. In the effort to diversify our product basket, we have seen tremendous success with the launch of new products like Devaaya Weight Watcher, Black Rice-E-com First, and Biryani Kit. We are well placed to capture growth across all our business segments with the combination of our strong brand, global supply chain hubs, wide distribution network in India and across geographies. LT Foods is a leading player in the specialty rice and rice food products and organic business across the globe, exporting produts in more than 60 countries. The company portfolio includes a range of brands that include Daawat, Royal and other regional leading brands. The company is also expanding its organic play by supplying organic food ingredients to businesses as well as offering organic staples to consumers in markets across the globe.

The scrip rose 0.09% to end at Rs 111.30 on the BSE today.

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