LT Foods (Dawaat) Q2FY21 net profit climbs 64 per cent YoY; stock tumbles over 5 per cent

For Q2FY21, LT Foods Ltd reported strong growth in financials. The company, known for its flagship Basmati and speciality rice brands namely, Daawat & Royal, is involved in milling, processing & marketing of branded and non-branded basmati rice and also, engages in manufacturing rice food products in the domestic & overseas markets.

Its total revenue increased by 24 per cent YoY to Rs 1,218 crore in Q2FY21, led by an increase in product demand due to the growing ‘in-home’ consumption. Consumers shifted to packaged & branded food products during the lockdown period as it ensured brand assurance, hygiene & quality, which eventually led to strong product demand. The company’s revenue is expected to continue seeing a positive upward trend as many consumers still prefer to purchase branded products.

LT Foods also saw significant growth by 114 per cent YoY in H1FY21.

Though the stock tumbled by more than 5 per cent on Monday, it has recovered by more than 240 per cent from its March lows. The stock has more than doubled on a YTD basis.

Going forward, strengthening brands, widening distribution networks, increasing brand penetration in consumer segments & expansion of product portfolio in the health & convenience platform, will aid in boosting the company’s revenue and profit growth.

On Monday, the stock of the company was trading at Rs 50.50, down by 5.08 per cent or Rs 2.70 per share.