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Business Upturn
24-04-2025
- Business
- Business Upturn
Tata Consumer shares fall 3% despite Q4 PAT jumping 59% YoY
Shares of Tata Consumer Products Ltd. fell 2.26% to Rs 1,124.10 in early trade on April 24, even after the company posted a 59% year-on-year jump in Q4 FY25 consolidated net profit to Rs 345 crore. The stock's decline comes as investors weighed margin pressures and high input costs against strong topline and bottom-line growth. Q4 results: Strong revenue and PAT growth Tata Consumer reported consolidated revenue of Rs 4,608 crore, up 17% YoY from Rs 3,927 crore in Q4 FY24. On a sequential basis, revenue grew 3.7% from Rs 4,444 crore in Q3 FY25. PAT surged 24% QoQ, up from Rs 279 crore last quarter. India operations brought in Rs 2,937 crore, compared to Rs 2,480 crore in Q4 FY24. International business contributed Rs 1,194 crore, nearly flat sequentially but up 13.5% YoY. Margins impacted by tea cost inflation Despite strong growth, consolidated EBITDA declined 1% YoY, largely due to high tea inflation in India and rising coffee costs in the US. The company absorbed 54% of tea cost increases in Q4 to protect volumes and market share. Managing Director Sunil D'Souza said during the earnings call that while tea prices have started to moderate due to seasonal effects, they still remain 15% higher YoY. He added that margins could normalise by Q1 or mid-Q2 FY26 if input costs stabilize. Outlook and broker call Brokerage firm Nomura has a 'Buy' rating on Tata Consumer with a target price of Rs 1,300, citing double-digit core business growth, price hike benefits, and an improving margin trend. Nomura forecasts a 13%/18% EBITDA/EPS CAGR over FY25–28 and sees strong upside potential as the company continues to focus on premiumisation and digital channels. FAQs Why did Tata Consumer shares fall despite strong Q4 profit? Investors likely reacted to the 1% YoY dip in EBITDA due to high input costs, particularly in tea and coffee segments. What was the Q4 PAT for Tata Consumer? Rs 345 crore, up 59% YoY and 24% QoQ. What are analysts saying about the stock? Nomura has maintained a 'Buy' call with a target of Rs 1,300, citing long-term growth in core and premium segments. What affected margins this quarter? High tea cost inflation in India and coffee costs in the US led to a slight EBITDA decline, despite topline growth. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Business Standard
23-04-2025
- Business
- Business Standard
Tata Consumer Products Q4 results: Net profit up 59.2% to ₹345 crore
Fast-moving consumer goods major Tata Consumer Products on Wednesday reported a 59.2 per cent jump in its net profit attributable to shareholders at ₹345 crore in the fourth quarter of the financial year 2024-25 (Q4FY25). Net sales in the reported quarter were up 17.3 per cent at ₹4,608 crore and its underlying volume growth for India branded business stood at 5.9 per cent (excluding acquisitions). In its India business, the beverages segment's revenue grew 17 per cent (9 per cent excluding Organic India) and the category continued to retain its leadership in the e-commerce channel, the company said in its release. It saw robust growth across tea, coffee and its ready-to-drink segments. The India foods business revenue grew over 27 per cent (17 per cent excluding Capital Foods) and its salt revenue grew 13 per cent, with value-added salt portfolio growing 31 per cent during the quarter. The Tata Sampann portfolio continued its strong momentum and grew 30 per cent for the quarter. 'Capital Foods and Organic India continued to build momentum with combined revenue growth of 19 per cent during the year. Rollout is being progressed as per plan, for the new channels of food services and pharma,' the company said. Tata Consumer Product's international business grew 5 per cent (excluding international business of Capital Foods and Organic India). 'We ended the year with a strong quarter, accelerating the momentum further. We delivered a topline growth of 17 per cent during the quarter, bringing FY25 growth to 16 per cent. The growth was broad based across India and the International business in line with the earlier trend,' Sunil D'Souza, managing director and chief executive officer at Tata Consumer Products said in the results release. He added, 'We delivered strong performance in the International Business with all our geographies demonstrating growth. Importantly, we delivered strong margin expansion, in line with our guidance.'
Time of India
23-04-2025
- Business
- Time of India
Tata Consumer Products Q4 net profit jumps 52% to Rs 407 crore
New Delhi: Tata Consumer Products Ltd (TCPL), on Wednesday, has reported a robust 52 per cent year-on-year rise in consolidated net profit to Rs 407.07 crore for the fourth quarter (Q4) ended March 2025, propelled by higher income. It had reported a net profit of Rs 267.71 crore in the corresponding quarter of the previous fiscal, according to a regulatory filing. The FMCG major's total income for the January–March period stood at Rs 4,664.73 crore, marking a strong increase from Rs 3,965.39 crore in the year-ago quarter. Total expenses during the quarter rose to Rs 4,180.35 crore, compared to Rs 3,455.93 crore in the same period last fiscal. For the full financial year FY25, Tata Consumer Products posted a consolidated net profit of Rs 1,380.31 crore, slightly higher than Rs 1,300.99 crore reported in FY24. Commenting on the performance, Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, said: 'We ended the year with a strong quarter, accelerating the momentum further. We delivered a topline growth of 17% during the quarter, bringing FY25 growth to 16%. The growth was broad-based across India and the International business in line with the earlier trend.' He added that core categories like India tea and salt continued to grow, alongside robust gains in emerging brands like Tata Sampann and Tata Soulfull. 'While the RTD business was impacted in the earlier part of the year, we have seen a strong rebound as we exit the year. Our recent acquisitions—Capital Foods and Organic India—performed well, and we are accelerating growth momentum through innovation and expansion into new channels of Food Services and Pharma,' D'Souza said. TCPL's international business also saw strong growth across geographies, alongside margin expansion in line with earlier guidance. 'In India, we continued to strengthen our Sales & Distribution infrastructure and completed rollout of a next-gen Go-to-Market platform. Channels of the future, i.e., Ecommerce and Modern Trade, continue to fuel growth momentum,' he noted. The company launched 41 new products during the year, focusing on health, wellness, convenience, and premiumization, with an innovation-to-sales ratio of 5.2%. 'Despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward,' D'Souza emphasized.
Mint
23-04-2025
- Business
- Mint
Tata Consumer eyes US coffee advantage amid proposed tariffs
New Delhi: Fast-moving consumer goods company Tata Consumer Products, which sells tea, coffee, and salt, said on Wednesday that any proposed tariffs imposed by the US will give the company a competitive advantage, given that the Western nation primarily imports all coffee. However, it may put pressure on its salt and supplements brands imported from India. During the company's post-earnings call Wednesday evening, management said the impact would depend on the final tariff rates. Given that the US does not produce coffee or tea, the company anticipates a relatively even playing field from a competitive standpoint. In the US, the company sells brands such as Tetley, Good Earth tea, Teapigs, Tata Tea, and Organic India, in addition to Eight O'Clock coffee; it also sells Tata Salt, Tata Sampann, etc. 'If I take 10% as the normative tariff—our big business in the US is coffee; coffee is not produced in the US, it's all imported, and therefore from a competitive scenario we will be on an even keel with everyone else. In fact, because you are manufacturing offshore, we might have a little bit of a handicap in our favour as we go forward. On tea—the US doesn't grow tea, and therefore, on tea, there will be a little bit of difference if someone is manufacturing in Canada versus the UK, but not significant enough,' Sunil D'Souza, managing director & CEO of Tata Consumer Products, said. Tata Coffee acquired Eight O'Clock Coffee in 2006. The US has been flip-flopping on tariffs. Despite recent tariffs announced on goods imported from India—on 10 April, the US announced the suspension of additional tariffs on India for 90 days until 9 July. Meanwhile, Indian and US officials are set to commence deliberations on the proposed bilateral trade agreement later this week. Tata Consumer Products derives about 29% of its revenue from international markets. It does not provide a breakup of the business in overseas markets. For instance, it is the third largest tea player in the UK through its brand Tetley. The remaining 71% comes from its India business. To be sure, the vast majority of coffee consumed in the US is imported. The US is one of the world's largest coffee importers. Brazil and Colombia are the primary exporters of coffee to the US. India's share of coffee exports to the US is relatively small. Interestingly, according to the company's annual report, its recently acquired Organic India brand generated over 40% of its FY24 revenue from the US. Meanwhile, on Organic India, D'Souza said the brand's supplements and infusions are primarily India-made products. 'So, from a competitive perspective, I don't think it changes at all. Balance India foods (salt, Tata tea, etc.), people will be supplying out of India, and therefore, overall category-wise, there might be a bit of pressure as inflation builds up. Your guess is as good as mine, but from a competitive scenario, we don't expect to be way off,' he added. On Wednesday, the company reported a 59% year-on-year jump in its March quarter consolidated net profit to ₹ 345 crore, up from ₹ 216.63 crore in the same period last year. The company's revenue from operations stood at ₹ 4,608 crore during the quarter, up 17% year-on-year as against ₹ 3,927 crore posted in the March 2024 quarter. For the quarter, the India-branded business reported underlying volume growth (UVG) of 5.9% (excluding acquisitions). The company's India beverages business saw a 9% increase in revenue. The company's revenue grew 16% for the full yearto ₹ 17,618 crore. First Published: 23 Apr 2025, 09:00 PM IST
Mint
23-04-2025
- Business
- Mint
Tata Consumer Q4 Results: Tata group company posts 59% YoY jump in profit to ₹345 crore, declares dividend
Tata Consumer Q4 Results: Tata group company Tata Consumer Products on Wednesday, April 23, posted a sharp 59% year-on-year (YoY) surge in its March 2025 quarter (Q4) consolidated net profit to ₹ 345 crore. The figure stood at ₹ 216.63 crore in the same period last year. The revenue from operations stood at ₹ 4,608 crore during the quarter under review, recording an increase of 17% YoY as against ₹ 3,927 crore posted in the March 2024 quarter. On a sequential basis, the profit rose 24% from ₹ 279 crore posted in the December 2024 quarter, while the revenue grew by 3.6% from ₹ 4,444 crore in the preceding quarter. The consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at ₹ 625 crore, down 1%. 'We ended the year with a strong quarter, accelerating the momentum further. We delivered a topline growth of 17% during the quarter, bringing FY25 growth to 16%. The growth was broad-based across India and the International business in line with the earlier trend," said Sunil D'Souza, Managing Director & CEO of Tata Consumer Products. Here's a look at Tata Consumer's segment-wise performance for Q4 FY25: For the domestic beverage business, the company recorded a 9% YoY growth in revenue and continued to retain its leadership position in the e-commerce channel. The RTD (Ready to Drink) business delivered a growth of 10%, driven by a strong volume growth of 17%. Overall, India Foods had another strong quarter with 27% growth (+17% organic), bringing FY25 growth to 29% (+13% organic). The salt revenue grew 13%, with the value-added salt portfolio growing 31% during the quarter. The Tata Sampann portfolio grew 30% for the quarter, bringing FY25 growth to 29%. Tata Soulfull also had a strong year with 32% growth. For the quarter, the International business revenue grew 5% with FY 25 growth at 7% (excluding the international business of Capital Foods and Organic India). "Integration of Capital Foods and Organic India's international operations has opened up further opportunities for growth outside the core beverages business," said the company. The company added six net new stores during the quarter and entered six new cities. In FY25, 58 net new stores were added, bringing the total number of stores to 479 across 80 cities. The Board also recommended a dividend of ₹ 8.25/- per equity share of ₹ 1 each (825%) for FY 2024-25. The Tata group firm has not announced a record date for the dividend payment. 'The Dividend, if approved by the Shareholders at the ensuing 62nd Annual General Meeting, will be paid/dispatched (subject to deduction of tax at source) on or after June 21, 2025,' Tata Consumer Products said in a filing today. Ahead of the earnings announcement, Tata Consumer share price ended at ₹ 1149 on the BSE, up 1.14%.
