Investor Presentaiton
Capital Allocation Plan
We aim to balance the objectives of ploughing back earnings to support sustained growth, debt reduction
and appropriate reward to shareholders through dividends
Growth
Kil
Capex
A
Debt
Repayment
Utilizing the free cash flow generated for the growth in its Basmati and Organic business
along with the new growth engines launched under the Health and Convenience platform.
In addition to the above the same will be utilized for strengthening the brands, widening
distribution network and increasing brand penetration across all consumer segments
To continue investing in automation/up-gradation based on increasing consumer base and
to strengthen the supply chain network.
The investment to be in-line with Company's expected Return on Capital Employed
Goal is to maintain our Debt/ EBITDA ratio less than 3x, though majority of our debt is
Working Capital debt that is required to purchase paddy in the season and age it for
minimum 12 months
Dividend
The Company strive to maintain a steady steam of dividend to reward its shareholders.
Effective 20-21, in the medium term the dividend pay-out ratio is expected to be in the
range of 20%-30% of profits
19 LT Foods Investor presentation, 1HY FY21 & Q2 FY21
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