LT Foods rose 6.57% to Rs 25.95 after consolidated net profit surged 167.10% to Rs 58.34 crore on 18.8% jump in net sales to Rs 1,197.95 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax soared 149.80% to Rs 82.50 crore in Q4 March 2020 as against Rs 33.03 crore in Q4 March 2019. Current tax expenses stood at Rs 29.35 crore in Q4 March 2020 as compared to Rs 5.24 crore paid in Q4 March 2019. The result was declared after market hours yesterday, 28 May 2020.
The company continued to operate its manufacturing facilities and distribute its products which are covered under the essential commodities category. Though, there have been some operational difficulties due to lock down imposed in various regions. However, the impact on overall operations have not been significant. As the economic continues to remain highly uncertain, the management is regularly monitoring the development in countries where it operate or supplies goods and take necessary action to adapt to changing environment.
EBITDA grew 54% to Rs 150 crore in Q4 March 2020 from Rs 98 crore in Q4 March 2019. EBITDA margin improved to 12.3% in Q4 FY 2020 as against 9.6% in Q4 FY 2019, aided by operational efficiencies.
Debt to EBITDA ratio improved to 2.9x in FY20 from 4.0x in FY19. Meanwhile, LT Foods collaborated with Zomato and Swiggy for direct delivery of goods to customers. Post enforcement of complete lockdown, a tele-caller facility was set up to directly reach top retail outlets in the country and take orders from them.
Speaking on the Q4 results, Ashwani Kumar Arora, the managing director (MD) and chief executive officer (CEO), stated: "This quarter saw us continuing to show operational excellence in spite of challenges posed due to disruptions from COVID-19. The company has been extensively working on its 3 strategic pillars of growth, margin expansion and strengthening the financial metrics. The company has been focusing on strengthening its brand, widening its distribution network and increasing brand penetration across all consumer segments. On margin expansion, the company has driven its focus on changing the product mix towards higher margin brands and ensuring manufacturing cost efficiencies. The company saw a 174 bps increase in GP margin to 26.7%, 140 bps increase in EBITDA margin to 12.2% and 125 bps increase in PAT margin to 4.8%. Thirdly the company has focused on strengthening its balance sheet by focusing on key financial parameters in the form of cash generation, debt reduction and finance cost reduction."
LT Foods is a consumer food company delivering rice and rice-based food brands in more than 80 countries. LT Foods also produces organic agri ingredients, supplying them to leading businesses in US and Europe for 25 years.
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