Q2 Miss Sends Tata Consumer Shares Crashing

21 Oct 2024 , 01:44 PM

Tata Consumer Products‘ shares dropped 9.4% on Tuesday to trade at the day’s low of Rs 986.30 on the BSE, as investors were unimpressed with an 8% increase in net profit for the quarter that ended in September 2024, to Rs 364 crore (attributable to shareholders). In the same time last year, the profit was Rs 338 crore.

According to the corporate filing, the India drinks segment rose by 3%, with tea volumes dropping by 4% year over year. Meanwhile, India Foods revenue grew by 28% (+9% organic). Volume increased by 1% for the quarter.

As of 1:40 pm, the shares had recovered slightly and were trading at ₹1,017.30 down nearly 7%.

The reported quarter’s revenue from operations was Rs 4,214 crore, which was 13% more than the similar quarter’s revenue of Rs 3,734 crore in the previous fiscal year.

Weather and competition from Campa (-4% YoY LFL) affected the India beverages category in Q2, and tea volumes fell 4% YoY. 29% of India’s business was made up of growth companies, which saw YoY growth of 15% (LFL).

For feedback and suggestions, write to us at [e-mail]