StoxBox: Views on Tata Consumer Products Ltd. Q4 FY24

Tata Consumer Products Ltd. reported healthy revenue growth led by strong growth in Indian business. The company’s India businesses continued their strong trajectory, with a revenue growth of 40% in FY24. The premiumization agenda continues to progress well, with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio. The company also delivered a strong performance in International markets and significant margin improvement. The consolidated EBITDA margins surpassed market consensus due to better operational efficiency. Going ahead, the domestic business will continue to improve, led by growth in the tea and salt business. Moreover, we remain hopeful that the company’s recently acquired new business – Capital Foods and Organic India – will drive significant revenue and cost synergies over the medium term. Additionally, the easing inflation and forecast of normal monsoon bodes well for the overall business over the medium to long term basis.

Tata Consumer Products Ltd. Q4FY24 Result First Cut – Revenue and PAT misses market estimates

  • Revenue stood at Rs. 3,927 crores in Q4FY24 (up 3.2% QoQ / up 8.5% YoY) owing to strong performance of its India business. However, revenues were marginally lower than market expectations of Rs. 3,962 crores.
  • In the company’s branded business segment, India’s business revenue rose to Rs. 2,480 crores in Q4FY24 (up 10.0% YoY), led by India Beverages business growing 3% YoY. India Foods business continued its strong trajectory, with revenue up 20% YoY including Capital Foods.
  • The company’s international business revenue stood at Rs. 1,052 crores in Q4FY24 (up 7.0% YoY).
  • Non-branded business revenue stood at Rs. 402 crores in Q4FY24 (up 4.2% YoY).
  • The company’s EBITDA rose 10.0% QoQ / up 23.0% YoY to Rs. 630 crores in Q4FY24, surpassing street estimates of Rs. 594 crores. EBITDA margin rose to 16.0% (up 99 bps QoQ / up 189 bps YoY), led by improved profitability across businesses.
  • Profit after Tax stood at Rs. 212 crores (down 29.6% QoQ / down 26.7% YoY) in Q4FY24, lower than market estimates of Rs. 303 crores, while PAT margin came in at 5.4% (down 252 bps QoQ / down 260 bps YoY).
  • The Board has recommended a final dividend of Rs. 7.75 per equity share.

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