LT Foods (LTFOODS) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue for H1 FY25 increased 12% year-over-year to INR 4,222 crores, driven by growth in Basmati, specialty, convenience, and health segments, with strong performance in organic and ready-to-eat/cook segments.

• Gross profit margin expanded by 160 bps to 33.8% in H1 FY25 due to lower input costs; EBITDA grew 7% to INR 515 crores, though EBITDA margin declined by 50 bps to 12.2% due to higher freight costs.

• Profit after tax rose 4% to INR 306 crores; EPS up 3% to INR 8.71; cash profit up 7% to INR 393 crores.

• Un-audited standalone and consolidated financial results for the quarter and six months ended September 30, 2024, were approved and reviewed by statutory auditors, with no material misstatements identified.

• A 3rd interim dividend of ₹0.50 per equity share was declared, with a record date of November 4, 2024.

Financial highlights

• Q2 FY25 revenue up 7% year-over-year to INR 2,134 crores; gross profit up 17% with margin rising 320 bps to 34.1%.

• Q2 EBITDA flat at INR 256 crores; EBITDA margin at 12%. PBT down 6% to INR 199 crores; EPS down 5% to INR 4.3.

• Consolidated net profit for Q2 FY25 was ₹15,061.01 lakhs, compared to ₹15,726.88 lakhs in Q2 FY24; H1 FY25 net profit was ₹30,589.71 lakhs, up from ₹29,471.24 lakhs year-over-year.

• Depreciation for H1 increased to INR 87 crores due to asset capitalization; full-year guidance at INR 175-180 crores.

• Other income rose to INR 25 crores, mainly from associate charges.

Outlook and guidance

• Volume growth for FY25 guided at 10-11%, with EBITDA margin expected at 12%.

• Gross margin targeted to improve to 34-35% as premium and organic segments expand.

• RTE/RTC segment expected to grow at 33-35% CAGR over the next five years, with new US capacity coming online.

• Freight costs expected to normalize from Q4 FY25 onwards.

• Focus on digital transformation, ESG integration, and inorganic growth opportunities.