LT Foods (LTFOODS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 17% year-over-year to INR 2,088 Cr, driven by growth across all segments, brand investments, and expanded distribution in Basmati & Specialty Rice, with strong gains in organic and ready-to-eat/cook segments.

• Gross profit increased 16% year-over-year, though gross margin declined 30 bps to 33.5% due to higher input costs.

• EBITDA grew 15% to INR 258 Cr, with an EBITDA margin of 12.4%.

• EPS rose to INR 4.41, up from INR 3.96 in Q1 FY24.

• Board declared a 2nd interim dividend of Rs. 0.50 per share for FY 2024-25 and approved the sale of a loss-making subsidiary.

Financial highlights

• Q1 FY25 revenue was INR 2,088 Cr, up from INR 1,789 Cr in Q1 FY24.

• Net profit for Q1 FY25 stood at INR 155 Cr, with a profit margin of 8%.

• Return on capital employed improved to 20.8% from 19.4% year-over-year; return on equity at 17.8%.

• Debt-to-equity ratio reduced to 0.2x (consolidated 0.34), and interest coverage ratio increased to 11.6.

• Net working capital days reduced to 202.

Outlook and guidance

• Management targets EBITDA margin of 14–15% over the next four years, leveraging premiumization and new product launches.

• Ready-to-eat/ready-to-cook business expected to grow at a CAGR of 33–35% over five years and break even by FY27 at INR 400 Cr revenue.

• Margin improvement anticipated in FY26 as commodity prices decline; freight cost pressures from the Red Sea crisis expected to persist for 1–2 more quarters.

• 34th Annual General Meeting scheduled for September 26, 2024.