LT Foods Ltd. shares surged nearly 5% on Thursday after the company reported a rise in its earnings for the first quarter of the financial year, supported by strong growth in revenue and operating performance.
The stock was closed at Rs 397.10 apiece, gaining around 18.50 points from its previous close at Rs 378.6.
Investors reacted positively to the earnings announcement, with LT Foods shares climbing after the results were announced, as the market cheered the company's strong revenue growth and margin expansion.
Revenue Growth Drives Earnings
The company reported a consolidated net profit of Rs 183 crore for the quarter ended on June 30, up 8.8% from Rs 169 crore in the corresponding quarter last fiscal.
Revenue from operations rose 27.9% year-on-year to Rs 3,152 crore, compared with Rs 2,464 crore in the year-ago quarter, reflecting healthy business momentum during the period.
Ebitda increased 33.5% to Rs 354 crore during the quarter, from Rs 265 crore a year earlier. The Ebitda margin expanded to 11.2% from 10.8%, indicating better operating efficiency despite a challenging business environment.
Other income of the business, however, declined sharply to Rs 9.5 crore during the quarter from Rs 37.1 crore in the corresponding quarter last year. Despite the drop in other income, the company's higher revenue and improved operating profitability helped deliver growth in quarterly earnings.
Stock rallied in recent times but is down over a year
Shares of LT Foods have been going up in the past month, gaining over 8.3% during the period. Even in the past one week, the stock gained around 6.5%, which also includes today's rally. However, the stock has been down over 20% in the past year.
Currently, the stock is trading at a price-to-earnings multiple of 21.22 times, while it traded between the range of Rs 333.15 and Rs 507.8 apiece during the past 52 weeks.
The company commands a market cap of Rs 13,730.4 crore as at the end of the previous trading session.
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