LT Foods Q1 net profit rises 44% to Rs 137 crore

New Delhi: Consumer food company LT Foods on Friday clocked a 44 per cent jump in consolidated net profit at Rs 137.44 crore in the first quarter of the current fiscal, mainly on account of improved margins.

The company had posted a net profit of Rs 95.16 crore in the same quarter a year ago.

Total income in the June quarter increased to Rs 1,778.07 crore from Rs 1,611.10 crore in the year-ago period, according to a regulatory filing.

Expenses remained higher at Rs 1,621.91 crore as against Rs 1,490.52 crore in the said period.

The company said its core 'Basmati and other specialty rice' business increased during the quarter by 24 per cent on a year-on-year (y-o-y) basis due to higher investment in brand and marketing, along with subsequent gain in market share.

Revenue from the health and convenience segment comprising Daawat Sehat, Royal Ready-to-Heat, Daawat Cuppa Rice, Daawat Saute Sauces and Kari Kari stood at Rs 41 crore in the June quarter.

However, the company witnessed a decline in its organic segment during the quarter by 31 per cent on a y-o-y basis due to anti-dumping duty on import of organic soya in the US, the company added.

LT Foods Managing Director and Chief Executive Officer Ashwani Arora said, "we witnessed significant improvement in margins and return ratios." The company will continue to invest in marketing and brand building initiatives, research and development and product innovation to enhance its competitive edge by expanding its market share and distribution reach, he said.

"With an unwavering focus on having a sustainable, scalable and profitable business, we are also optimistic about maintaining the growth momentum this year and further solidifying our position in consumer space in India as well as globally," Arora added.