Q3FY23 Preview: Tata Consumer Products: Revenue seen at Rs34,668 million, PAT at Rs2,822 million
30 Jan, 2023 |
4:24 PM
Weak volumes, margins likely
Result date: 2nd February, 2023
Recommendation: Add
Target price: Rs 850
Tata Consumer Products (Tata Consumer) could post mid-single digit decline in sales volumes of tea amid late onset of winter and higher competition from regional players. Foods business would see continued traction. Salt would witness low single-digit volume growth. NourishCo should continue its momentum and deliver strong growth in the quarter. Overall, analysts at IIFL Securities expect the company to post sales growth of 8% over the year ago quarter.
EBITDA though is expected to remain flat over the year-ago quarter, partly due to weakness in EBITDA of international tea and B2C Coffee + Vietnam segments. Higher tea prices and unfavorable currency are other margin headwinds.
Profit After Tax (PAT) could grow 2.7% as compared to the year-ago quarter.
Important management insights to watch out for:
Tea prices and volumes
Demand trends across key markets and product categories
Outlook on input costs, pricing action and margins
