Q2FY24 Preview: Tata Consumer Products: Revenue seen at Rs. 36,749 million, PAT at Rs. 3,265 million

30 Oct 2023 , 09:54 AM

Result date: October 31, 2023

Recommendation: Add

Target price: Rs. 900

Analysts at IIFL Capital Services expect Tata Consumer Products to clock in 6.5% growth in India tea and foods (Salt and Sampann) business as compared to the year-ago quarter. The company’s international portfolio is expected to deliver a year-on-year topline growth of ~24% and EBITDA growth of ~192% (on a subdued base). Overall sales growth is expected at ~9.3%, whereas EBITDA growth is expected to be ~15.7% over the year-ago quarter. The EBITDA margin is expected to increase by 80 basis points over the year-ago quarter, but would contract by ~90 basis points sequentially.

Profit After Tax or PAT could grow 32.7% as compared to the year-ago quarter.

Important management insights to watch out for:

• Demand trends across markets, product segments
• Outlook on margins, pricing action

Rs. Million	September 2023 estimates	YoY change
Revenue	36,749	9.3%
EBITDA	5,018	15.7%
PAT	3,265	32.7%

Source: IIFL Research

	Sales growth	EBITDA growth
India tea and foods	6.5%	2.6%
International tea	24.0%	191.7%
B2C Coffee + Vietnam	7.5%	44.1%
B2B Coffee	6.0%	21.4%
Overall growth	9.3%	15.7%

Source: IIFL Research