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LT Foods shares drop after organic segment revenue drops 20 percent in September quarter

LT Foods shares drop after organic segment revenue drops 20 percent in September quarter

LT Foods shares drop after organic segment revenue drops 20 percent in September quarter
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By CNBCTV18.com Nov 1, 2022 12:37:05 PM IST (Published)

The company's organic business reported a decline of 20 percent from last year during the quarter.

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Shares of LT Foods Ltd., the company that produces and sells rice under the ‘DAAWAT’ brand, dropped as much as 5 percent on Tuesday after announcing results for the September quarter.


The company's organic business reported a decline of 20 percent from last year during the quarter. The decline was attributed to a delay in bulk shipments. Organic contributed 13 percent to LT Foods' topline during the financial year 2022.

Total revenue jumped 31 percent year-on-year during the September quarter to Rs 1,732 crore. Revenue growth was aided by the core basmati business, which grew 36 percent during the quarter.

EBITDA stood at Rs 178 crore, up 14 percent year-on-year. However, the EBITDA margin contracted nearly 200 basis points due to an increase in freight expenses.

Net profit jumped 16 percent from last year to Rs 94 crore.

LT Foods also declared an interim dividend of Rs 0.50 per share. The company has fixed November 11 as the record date for the same.

The company's market share in India also increased 180 basis points during the September quarter to 28.5 percent. MD & CEO Ashwani Arora highlighted that margin expansion will remain a key focus area for the company going forward.

Shares of LT Foods are trading 4 percent lower at Rs 121.3 as of 12:30 PM.

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