 "LT Foods share price rises over 4% after opening new facility in UK")
Shares of FMCG firm LT Foods surged up to 4.54 per cent at Rs 293.15 per share on the BSE in Friday’s intraday trade. This came after LT Foods on Thursday announced the inauguration of a facility in the United Kingdom (UK).
With the new facility, LT Foods, the owner of basmati rice brands 'Daawat' and 'Royal', is set to meet the growing demand in the UK's rice market, the company said in an exchange filing.
Located in Harlow, the new facility is spread over an area of 100,000 square feet, the facility will offer both branded and private-label products. The facility boasts a production capacity of 60,000 tonnes of rice per annum.
The rice and rice-based food market in the UK is worth around 1 billion pounds. To tap this opportunity, LT Foods has made an initial investment of 7 million pounds in this new facility with a commitment of further investment up to 50 million pounds in the coming years.
“The company is expecting annual revenue to the tune of 50 million pounds over the next 2 years, with a targeted 100 million pounds within the next 5 years. The company will also provide employment opportunities to local talent,” LT Foods said in a statement on Thursday.
The company has already partnered with 4 leading retailers in the UK with plans to further scale this up.
LT Foods, reported a 14 per cent year on year (YoY) increase in consolidated net profit to Rs 150.24 crore for the fourth quarter of fiscal 2023-24, driven by strong sales. In the same period a year earlier, the company's profit was Rs 131.81 crore.
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Total income for the January-March quarter of 2023-24 rose to Rs 2,091.73 crore from Rs 1,834.95 crore in the corresponding period a year ago.
The smallcap firm has a total market capitalisation of Rs 10,112.01 crore. The company shares are trading at a price to earnings multiple of 60.98 with an earning per share of Rs 4.60.
At 13:16 PM; the stock of the company pared some of its gains and was trading 3.85 per cent higher at Rs 291.20 per share on the BSE. In comparison the BSE Sensex rose 0.85 per cent to 80,682 levels.