LT FOODS 2023-24 Annual Report Analysis

Mon, 9 Sep

LT FOODS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

LT FOODS Income Statement Analysis

• Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY24 as against 10.5% in FY23.
• Depreciation charges increased by 20.5% and finance costs increased by 1.1% YoY, respectively.
• Other income grew by 15.4% YoY.
• Net profit for the year grew by 41.4% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 7.7% in FY24.

LT FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	69,358	77,724	12.1%
Other income	Rs m	430	496	15.4%
Total Revenues	Rs m	69,788	78,221	12.1%
Gross profit	Rs m	7,286	9,868	35.4%
Depreciation	Rs m	1,269	1,529	20.5%
Interest	Rs m	821	830	1.1%
Profit before tax	Rs m	5,626	8,005	42.3%
Tax	Rs m	1,398	2,029	45.1%
Profit after tax	Rs m	4,228	5,976	41.4%
Gross profit margin	%	10.5	12.7
Effective tax rate	%	24.9	25.3
Net profit margin	%	6.1	7.7

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LT FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 20 billion in FY23, thereby witnessing an increase of 5.2%.
• Long-term debt down at Rs 105 million as compared to Rs 3 billion during FY23, a fall of 96.0%.
• Current assets rose 11% and stood at Rs 44 billion, while fixed assets rose 20% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 60 billion as against Rs 53 billion during FY23, thereby witnessing a growth of 14%.

LT FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	27,571	33,716	22.3
Current Liabilities	Rs m	20,111	21,159	5.2
Long-term Debt	Rs m	2,609	105	-96.0
Total Liabilities	Rs m	53,003	60,162	13.5
Current assets	Rs m	39,481	43,945	11.3
Fixed Assets	Rs m	13,521	16,217	19.9
Total Assets	Rs m	53,003	60,162	13.5

LT FOODS Cash Flow Statement Analysis

• LT FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 193.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 175 million from the Rs 1 million net cash flows seen during FY23.

LT FOODS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,584	7,569	193.0%
Cash Flow from Investing Activities	Rs m	-3,946	-2,015	-
Cash Flow from Financing Activities	Rs m	1,363	-5,380	-
Net Cash Flow	Rs m	1	175	23,491.9%

Current Valuations for LT FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 389.4, stands at 23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	199.7	223.8
TTM Earnings per share	Rs	12.2	17.2
Diluted earnings per share	Rs	12.2	17.2
Price to Cash Flow	x	6.1	7.7
TTM P/E ratio	x	8.5	23.7
Price / Book Value ratio	x	1.3	1.7
Market Cap	Rs m	35,133	57,512
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for LT FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 2.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 10.6x during FY24, from 7.9x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 17.7% during FY24, from 15.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 26.1% during FY24, from 21.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.3% during FY24, from 9.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.0	2.1
Debtors’ Days	Days	355	317
Interest coverage	x	7.9	10.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.5	11.3
Return on equity	%	15.3	17.7
Return on capital employed	%	21.4	26.1

To see how LT FOODS has performed over the last 5 years, please visit here.

LT FOODS Share Price Performance

Over the last one year, LT FOODS share price has moved up from Rs 174.9 to Rs 389.4, registering a gain of Rs 214.5 or around 122.6%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for LT FOODS and quarterly results for LT FOODS)