LT FOODS (DAAWAT) = Q4 FY 20 RESULTS REVIEW = dt 02 06 20

LT FOODS (DAAWAT)

Q4 FY 20 RESULTS REVIEW

·       70 year old company

·       Supplies Rice/rice food brands in more than 80 countries

·       Produces organic agri ingredients, supplies to leading businesses in US and Europe

·       Q4 FY 20 PERFORMANCE

·       TOTAL INCOME : RS.1217 CR UP 20% YOY; strong growth across segments

·       International branded businesses up by 32% YoY

·       Organic Business up by 15% YoY

·       EBITDA AT RS.150 CR UP 54% YOY aided by operational efficiencies

·       PAT : RS.58 CR UP 167% YOY with margin expansion of 265 bps, aided by savings in finance cost

·       Saw a 174 bps increase in GPT margin to 26.7%;140 bps increase in EBITDA margin to 12.2% and 125 bps increase in NPT margin to 4.8%

·       Cash generation, debt reduction and finance cost reduction focus

·       29% market share in India and 45% in US for Daawat and Royal respectively

·       5 processing facilities in India

·       2 packaging units and 1 ready to heat facility in US and 1 processing facility in Rotterdam.

·       Key markets are India, US, UK, Europe, Middle East and Far East

FY 20 PERFORMANCE

·       TOTAL INCOME : RS.4184 CR; UP 7% YOY, - strong growth across segments

·       International Branded business grew by 20% YoY

·       EBITDA RS .509 CR; UP 21% YOY – due to operational efficiencies

·       PAT : RS.199 CR; UP 45% YOY – improvement of margins by 125 bps

·       EPS : RS.5.8 UP 46% YOY

·       CASH FROM Opns up Rs.365% at 4,77 cr

·       Book value per share at rs.50 per share up by 11.5%

·       We are adequately covered for demand for FY 21

·       There is surge in demand for packaged goods.

·       Falls under essential services

·       No break in operations.

LT Foods (in Rs. Cr.)	Mar '20	Dec '19	Sep '19	Jun '19	Mar '19	YOY	QOQ
Net Sales	1198	996	972	980	1009	18.8	20.3
Purchase of Traded Goods	24	11.3	2.48	16.91	4.99	382	113
Increase in Stocks	71	-1.14	-56.6	84.12	-35.3	-301	-6325
Other Income	18.8	1.36	12.7	5.05	8.84	112	1280
Interest	35.6	28.12	31.2	37.29	43.9	-18.76	26.74
P B T	84.9	67.49	59.6	68.69	32.4	162	25.83
Tax	24	18.87	11.8	22.83	11.2	115.8	27.98
Net Profit	60.8	48.6	48	45.86	21	187	25
Net P/L After M.I & Associates	54	45.41	42.4	42.71	19.7	174	18.9
Equity	31.98	31.98	31.98	31.98	31.98	0	0
Basic EPS	1.69	1.42	1.33	1.34	0.62	172.6	19
52 Wk L/H	13	32.8
TECHNICAL RATING
Very Bullish
Moving Averages	Bullish
Technical Indicators	Bullish
Moving Averages Crossovers	Bullish
Valuation
Market Cap (Rs Cr.)		839.59
P/E		9.87
Book Value (Rs)		27.24
Dividend (%)		50
Industry P/E		8.62
EPS (TTM)		2.66
Price/Book		0.96
Dividend Yield.(%)		1.9
Face Value (RS)		1
Deliverables (%)		45.19