Reliance Backed Company: Chocolate Company's Shares Hit 5 Per Cent Lower Circuit Despite 5 Times Rise in PAT
The company posted a net profit of Rs 3.72 crore, marking a significant 520 per cent increase compared to Rs 0.60 crore in the same quarter of the previous fiscal year.
Lotus Chocolate Company Ltd, a confectionery-focused manufacturer, reported a robust year-on-year (YoY) growth in net profit (PAT) and revenue for Q3 FY25. The company posted a net profit of Rs 3.72 crore, marking a significant 520 per cent increase compared to Rs 0.60 crore in the same quarter of the previous fiscal year. Revenue from operations surged to Rs 194 crore, a remarkable 274 per cent growth from Rs 51.90 crore in Q3 FY24.
However, the company’s quarterly performance showed a sequential decline, with net profits falling 29 per cent on a quarter-on-quarter (QoQ) basis, leading to selling pressure on the stock.
Financial Performance
Lotus Chocolate Company’s operating earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Rs 5.85 crore in Q3 FY25, compared to Rs 0.84 crore in Q3 FY24. Lotus Chocolate also saw an improvement in its EBITDA margin, which expanded by 240 basis points to 4.0 per cent in Q3 FY25, compared to 1.6 per cent in the corresponding quarter of the previous year.
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Stock Market Performance
As of 2:40 PM on Tuesday, Lotus Chocolate Co.'s stock price was down 5 per cent, hitting the lower circuit at Rs 1,218.4 per share on the BSE. In contrast, the BSE Sensex was up by 0.26 per cent at 76,528.22.
The company’s market capitalisation stood at Rs 1,564.55 crore. The stock has experienced a significant fluctuation in the past year, with a 52-week high of Rs 2,608.65 per share and a 52-week low of Rs 301.35 per share. In the past one year stock delivered substantial returns of 280 per cent.
About the Company
Lotus Chocolates Limited (LCL) is engaged in the manufacturing of Chocolates, Cocoa Products and other similar products. LCL is in the business of sourcing and processing cocoa beans to manufacture chocolates, cocoa products and cocoa derivatives. Its products are supplied all over the world to chocolate makers and chocolate users, from local bakeries to multinational companies, etc. Reliance Consumer Products Ltd (a wholly owned subsidiary of Reliance Retail Ventures Ltd) acquired a 51 per cent stake and took control of the company from May 24th, 2023.
Disclaimer: This article is for informational purposes only and not investment advice.