LT Foods Hit with 340% US Duty—But Keeps Earnings Steady

Image Source: The Indian Express

LT Foods Ltd (NSE: LTOL.NS) has stated that the U.S. Department of Commerce imposed a 340% countervailing duty (CVD) on Ecopure Specialities, its associate company. The duty was against the sales made within the January–December 2023 period and is approximately ₹500 million. Although hefty, LT Foods has stated that it does not anticipate a material impact on future profits.

1. What's Driving the CVD?

The U.S. Commerce Department levied the 340% CVD as part of a trade enforcement action, likely linked to alleged subsidy benefit derived by Ecopure Specialities.
The duty goes back to sales made in calendar year 2023, and the company is weighing its legal and financial options.

2. LT Foods' Reaction

In a filing, LT Foods clarified that the ₹500 million effect is one-time in nature and relates to historical transactions.
The company again asserted that future earnings and business remain unaffected and that the company is still in a healthy financial position.
LT Foods reasserted its devotion to following international trade practices and is contemplating remedial measures.

3. Market Snapshot

As of June 24, 2025, LT Foods shares were trading at around ₹432.85 on the NSE, having a 52-week range of ₹244.85 to ₹484.00.
The firm has shown strength from recent volatility with the support of strong fundamentals and diversified global operations.

Sources: Reuters, Economic Times, Trendlyne, Moneycontrol