RATING

RECOMMENDATION

Neutral

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Neutral

Business Type

Traditional Business

RATING

RECOMMENDATION

Neutral

Business Type

Traditional Business

  • Lotte Growth

If you want to know about Lotte India Revenue Growth journey before investing, Just go through this page and know about Net Growth, Key Ratio, etc. Collect all the important information about Lotte India Unlisted Shares.

Lotte Revenue Growth

Growth in %

  • -3.32%

    1 Year

  • -0.17%

    3 Year

  • -2.85%

    5 Year

In FY21, the total revenue of the company stood at Rs. 377 Cr., which represents a de-growth of 3% from FY20. The reason for the fall is the COVID-19 lockdown and restrictions. Meanwhile, in FY21, due to home seclusion, the company has witnessed small changes in their sales channel, with an inclination towards e-commerce sales as the company's products are listed on major grocery e-commerce sites, and is expected to increase their contribution in the coming years, whilst independent small grocers remain the dominant channel for distribution. In FY21, the company has made efforts to provide fewer discounts and schemes, which were Rs. 35 Cr. in FY20 to Rs. 31 Cr. in FY21. Other operations, on the other hand, increased by 152% in FY21 over FY20, owing primarily to a net gain on foreign currency transactions and translation exchange differences.

Despite all, the company is not consistent with their earnings power. 

Lotte Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Net profits of the company in FY21 have increased substantially from FY20 despite generating lower revenue in FY21. Prudent cost management initiatives undertaken by the company are the primary reason for such growth. In FY21, the prices of vanaspati, skimmed milk powder, and chocomass have gone up significantly. However, the company was able to adopt cost reduction measures such as product mix change, additional cost restructuring and cost-saving initiatives to negate the impact of COVID-19, which could be realised with 19% reduction in the overall expenses in FY21 from FY20. Overall the company has not been consistent with profits and only reported profits in FY19 and FY21, during the company under review period. 

Lotte EPS Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

There were no changes made in the equity structure of the company, which resulted in the growth of EPS directly correlated to the growth in the net profits of the company in FY21 from FY20. 

  • Lotte Book Value Growth

Growth in %

  • -0.83%

    1 Year

  • -1.23%

    2 Year

  • -2.08%

    4 Year

There were no changes to the company's equity structure during the previous fiscal years, and changes in book value are directly related to changes in total equity. Overall book value per share of the company has been witnessing a negative trajectory with a fall year-on-year due to accumulated profit and loss over the years. Retained earnings became negative from January 1, 2015 to March 31, 2016, which then added losses to the retained earnings and thereafter for all the financial years except 2019 and 2021, the company reported losses. Profits in FY19 and FY21 were not significant enough for positive retained earnings. On an individual basis, the overall equity of the company has increased with profits, but the overall book value per share fell in FY21.

Lotte EBITDA Growth

Growth in %

  • 87.66%

    1 Year

  • 15.59%

    3 Year

  • 17.20%

    5 Year

EBITDA of the company has reported a growth of 88% in FY21 from FY20 despite a fall in the overall revenue. The company has been able to mitigate expenses despite facing challenging conditions along with increase in the price of raw materials. Despite such factors, expense per unit of operating revenue has decreased by 15% in FY21 from FY20, which is also reflected in the higher EBITDA margin growth of 97% in FY21 from FY20. Cost of the good sold has decreased by 4%, owing to product mix strategy and 24% reduction in the operating expenses. EBITDA has remained positive through out the years and grew substantially year-on-year for the financial years when the company generated positive profits. 

Lotte Operating Profit Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

EBIT of the company has witnessed substantial growth in FY21 from FY20 in lieu of lower EBITDA in FY20, amounting to Rs. 33 Cr., and with further depreciation, a negative Rs. 9 Cr. was reported as EBIT. With higher EBITDA in FY21, the depreciation amount, which has remained at a stable level in FY21 from FY20, has transpired into a positive EBIT in FY21. Similarly, the same phenomenon is applied to FY19, when depreciation remained at a stable level from FY18, but due to higher EBITDA, EBIT turned positive. 

Lotte Asset Growth

Growth in %

  • -5.13%

    1 Year

  • -4.47%

    3 Year

  • -5.51%

    5 Year

Total assets of the company have been witnessing a negative trend. Fixed assets are positively correlated (0.98) with total assets, which indicates a decrease in fixed assets will have a significant impact on total assets, and with such a decrease in fixed assets year-on-year (y-o-y), total assets of the company declined y-o-y. The decline in assets is due to the fact that the company has already established fixed assets with little to no addition in assets, and with further depreciation, the company's fixed assets fell and subsequently total assets. 

Lotte Cash Flow from Operations

Growth in %

  • 15.71%

    1 Year

  • 12.03%

    3 Year

  • 53.78%

    5 Year

Cash flow from operations increased by 16% in FY21 compared to FY20. The primary reason for such growth is the increase in positive profits generated in FY21. Along with that, changes in the working capital, especially a decrease in the current assets, gave further impetus to the cash flow, among which the decrease in inventories has contributed the most to improving cash flow from operations. Overall in FY21, there has been a decrease in the current liabilities, which earlier in FY20, gave impetus to cash flow from operations. 

  • Lotte Solvency Ratios

Lotte D/E Ratio

The D/E ratio in FY21 fell by 14% from FY20. The total debt amount has decreased by 17%, owing mostly to interest payments already made in previous financial years, and the company did not undertake any new borrowings in FY21, which has reduced the overall debt of the company. On the other hand, equity, on the other hand, has increased by 2% in FY21 due to an increase in retained earnings as a result of positive net profits in FY21. This led to decrease in the debt/equity of the company in FY21.

Lotte Current Ratio

The current ratio of the company in FY21 has fallen by 17% from FY20. The reason for the de-growth is an increase in the current liabilities along with a decrease in the current assets of the company. Current assets de-grew by 4%, owing mostly to a decrease in the inventory of the company, and current liabilities grew by 16% in FY21 from FY20, mostly attributable to an increase in the current maturities of long-term debt. It must be noted that there was a reduction in the account payables. The reason for the lower receivable and lower payables is the volatility prevailing in the market. On average, the current ratio has witnessed an increase of 8% in FY21 compared to FY20.

Lotte Quick Ratio

In FY21, the quick ratio saw a growth of 9% from FY20. Current assets excluding inventories have witnessed an increase of 19%, mostly attributable to receivables from related parties, which led to an overall improvement in the quick ratio. On the other hand, inventories have witnessed a significant de-growth of 29% due to the volatility prevailing in the market amid COVID-19.

Lotte Interest Coverage Ratio

The interest coverage ratio of the company in FY21 grew by 326% from FY20. The primary reason for the growth is the positive EBIT generated in FY21 on account of the prudent cost management initiative undertaken by the company. On the other hand, interest expense has remained at FY20's level. Although interest on borrowings and swap arrangements has increased by 5%, the fall in interest expense on other items nullified the impact of the increase, leading to a higher interest coverage ratio. 

  • Lotte Operating Efficiency

The company was able to recover from the margin hit of FY20 in FY21. Despite COVID-19 and an increase in raw material prices, the company has generated positive EBIT, EBITDA, and PAT. The reason for such an improvement is that the company was able to limit the impact and manage the working capital, tranche of loan repayment, and regular investments with internal accruals owing to the cost-cutting measures used by the company, including product mix adjustment. The company implemented additional cost-cutting and cost-cutting initiatives to offset the impact of losses during the COVID-19 impacted months, which improved the company's overall margins in FY21. EBITDA margin and PAT margin grew by 339%, 173% and 160%, respectively in FY21 from FY20. 

Lotte Operating Profit EBIT Margin(OPM)


Lotte Profit Before Tax Margin (PBT Margin)

Lotte Profit After Tax Margin (PAT Margin)

  • Lotte Profitablity Ratio

Lotte Return on Equity(RoE)

In FY21, the ROE of the company witnessed an increase of 157% from FY20. As per DuPont analysis, the primary reason for the growth in ROE is the growth in net income margin. Net income margin has witnessed an increase of 160% in FY21 from FY20, which was a result of strong cost control despite lower revenue realisation amid COVID-19. Asset turnover, on the other hand, remained stable as the company operates in the latter stage of the business cycle with already established assets. The equity multiplier has decreased, which indicates a positive sign but subsequently reduces the overall ROE. The company has not increased its assets. As a result, the equity multiplier has witnessed a marginal decrease of 4%, which has created an insignificant impact. 

Lotte Return on Capital Employed(RoCE)

The EBIT in FY21 increased by 328% from FY20 and stood at a positive Rs. 21 Cr. And the total capital employed de-grew by 10% in lieu of COVID-19 and uncertain market conditions. With the dual impact of higher EBIT and lower capital employed, ROCE of the company has increased substantially by 336% in FY21 compared to FY20. 

Lotte Return to Assets (RoA)

In FY21, the company's ROA increased significantly as a result of a lower asset base and higher net profit. ROA has witnessed an overall increase of 160%. 

  • Lotte Valuation Ratios

Lotte Earning Yield