Shares of LT Foods tanked 9 percent on January 27 after the company released a disappointing set of Q3 earnings, marked by a decline in net profit and weak operational performance.
At 3.04 pm, shares of LT Foods were trading at Rs 367.85 on the NSE. The selloff was further intensified by a spike in trading volumes in the counter.
As much as 11 lakh shares changed hands on the exchanges thus far, more than double the one-month daily traded average of five lakh shares.
Follow our market blog to catch all the live action
The basmati rice maker reported a near 6 percent fall in its Q3 net profit to Rs 143 crore, down from Rs 152 crore that it clocked in the same quarter of the preceding fiscal. The decline in net profit can be attributed to a spike in expenses as costs of raw material, finance costs and employee benefit expenses surged from the year ago period.
The rise in expenses also weighed on the company's operational performance as EBITDA margin contracted to 11 percent in Q3 as against 12.3 percent in the year ago quarter.
On the other hand, revenue was 17 percent on year to Rs 2,275 crore, as compared to Rs 1,942 crore last fiscal.
Meanwhile, the board of LT Foods also approved the acquisition of a 4 percent stake in Raghunath Agro Industries, an arm of DAWAAT Foods for Rs 2,70 crore. DAWAAT Foods is also a wholly-owned subsidiary of LT Foods.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
