Global FMCG company LT Foods, renowned for its ownership of basmati rice brands Daawat and Royal, made a significant announcement on Monday. The company reported a striking 64.85 percent surge in consolidated net profit, reaching INR 157.27 crore for the second quarter (Q2) concluding on September 30, 2023. This remarkable financial performance marks a substantial improvement over the INR 95.40 crore consolidated net profit achieved in the same period during the previous fiscal year, as stated in the company’s regulatory filing.
In Q2 of FY24, the company witnessed a significant increase in its revenue from operations, reaching INR 1991.81 crore, compared to the INR 1731.60 crore recorded in Q2 of FY23. Simultaneously, the company’s total expenses also exhibited growth, rising to INR 1792.33 crore during Q2 of FY24, in contrast to the total expenses of INR 1601.02 crore incurred in the corresponding period of the preceding fiscal year, as reported in the BSE filing.
Ashwani Arora, managing director and CEO, LT Foods, said, “Our ongoing efforts to expand our presence in India and international markets have yielded substantial results.”
Arora further said, “We have continued our investment to enforce our brand equity and as a result, the market share of our Daawat brand in India surged to an impressive 30.2 per cent, marking a consistent upward trajectory with an increase of 160 bps over the same period last year (MAT September 23; AC Nielsen Retail Survey Audit). Furthermore, we are thrilled to note that the number of Daawat consuming households has risen by a substantial 24 per cent year-on-year, reaching a staggering 48 lakhs (Kantar MAT September 23) in India.”
The brand Royal has continued to enhance its presence and has acquired an additional 1.6% market share in North America.
Adapting to shifting consumer preferences, the company’s strategic goal is to expand its core operations and maintain a competitive edge within the market. This will be achieved through the introduction of new product lines and the diversification of its product portfolio, capitalizing on its robust global distribution network and strong brand reputation.
“We are confident of continued improvement in our performance over the long term and in our ability to deliver consistent, sustainable, profitable, and responsible growth,” said Arora.