Tata Global Beverages Ltd's Q4FY18 consolidated Adj. net profit declines 21.8% yoy to Rs73.2cr : Misses Estimates

The company’s consolidated revenue stood at Rs1,688.4cr, up 0.4% yoy but down 2.4% qoq.

May 11, 2018 02:05 IST India Infoline Research Team

Tata Global Beverages Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,688.4 0.4
EBITDA 145.7 [21.4]
EBITDA Margin (%) 8.6 [240]
Net Profit (adjusted) 73.20 [21.8]
***EBITDA margin change is bps


Reco. Price


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Tata Global Beverages reported poor set of numbers for the quarter, significantly lower than the consensus estimates on operating and profitability fronts. Consolidated revenue for the quarter was flat. Due to significant jump in raw material cost, EBITDA declined by 21.4% to Rs145.7cr, and hence, EBITDA margin contracted by 240bps to 8.6%. Reported PAT was up by 40% to Rs71.6cr on account of Rs42.5cr of exceptional items in the base quarter. However, adjusting for the same Adj. PAT was down by 21.8% yoy to Rs73.2cr.
  • Revenue from the branded Tea segment was flat on yoy basis, and up 5.8% for the coffee segment. Unbranded segment, on the other hand, reported decline of 5.5% yoy due substantially lower coffee crop (adversely impacted by abnormal and extreme weather conditions). Further, lower commodity prices weighed down the non-branded business.
  • On EBIT level, Tea segment reported EBIT margin expansion of 295bps, whereas, coffee segment’s EBIT margin contracted by 135bps. Further, the non-branded business reported EBIT loss of Rs10.3cr against EBIT profit of 56.7cr.
  • On the standalone basis, the company’s revenue was up marginally by 2.6% yoy to Rs714.7cr. EBITDA margin remained broadly flat at 9.8% and PAT grew by 20.9%.
  • Raw material cost as percent of net sales jumped by 624bps yoy. Advertisement and other expenses were down by 185bps and 180bps yoy as percent of net sales respectively.
  • Loss from associates and JVs widened to Rs43.1cr for the quarter against loss of Rs33.2cr in same quarter last year.

Technical View:

Tata Global Beverages Ltd is currently trading at Rs. 286.65, up by 1.15 points or 0.4% from its previous closing of Rs. 285.50 on the BSE.
The scrip opened at Rs. 285.10 and has touched a high and low of Rs. 290.15 and Rs. 285 respectively. So far 21,35,628 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 100 DMA.

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