L T Foods Reports Mixed Performance in Q2 FY25, Positive Revenue Generation and Concerns Remain

L T Foods, a midcap company in the rice and rice processing industry, has recently announced its financial results for the quarter ending September 2024. According to the report, the company’s performance has remained flat with a score of -3, a decrease from the previous quarter’s score of 3.

However, there are some positive aspects to the financials of L T Foods. The company has shown a strong operating cash flow of Rs 756.91 crore annually in the last three years, indicating a higher revenue generation from its business operations. Additionally, the net sales for the quarter have been the highest in the last five quarters at Rs 2,107.79 crore, showing a positive trend in the near term.

On the other hand, there are some areas of concern for L T Foods. The profit before tax less other income (PBT) for the quarter has fallen by 11.87% year on year, and the operating profit (PBDIT) has been the lowest in the last five quarters. The operating profit margin has also decreased to 10.88%, indicating a decline in the company’s efficiency. The earnings per share (EPS) have also been the lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

Furthermore, the company’s dividend payout ratio (DPR) has been the lowest in the last five years, indicating a lower distribution of profits as dividends. The non-operating income for the quarter has been the highest in the last five quarters, but it may not be sustainable as it comes from non-business activities.

In conclusion, L T Foods has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to its financials, there are also areas of concern that need to be addressed. Based on these results, MarketsMOJO has given a ‘Hold’ call for the company’s stock.