Q3FY24 Preview: Tata Consumer Products: Revenue seen at ₹37,889 Million, PAT at ₹3,177 Million

6 Feb 2024 , 11:41 AM

Result date: February 7, 2024

Recommendation: Add

Target price: ₹1,150 

Analysts at IIFL Capital Services expect Tata Consumer Products to report revenue growth of high single digits (9%) as compared to the year-ago quarter. The company’s India tea is expected to deliver a volume/value growth of 3%/5%, respectively and foods is expected to deliver a value growth of ~14% driven by ~6% growth in salt and 45% growth in Sampann relative to the year-ago quarter. The company’s US coffee business could decline by 1-2% whereas the International tea business is likely to grow ~26% over the year-ago quarter. The company’s EBITDA margin could remain flat sequentially at ~14.4%.

Profit After Tax or PAT could grow 9.0% relative to the year-ago quarter.

Important management insights to watch out for:

• Market share updates
• Demand trends in both domestic and international markets
• Outlook on margins

₹ Million	December 2023 estimates	YoY change
Revenue	37,889	9.0%
EBITDA	5,444	20.0%
Profit After Tax	3,177	9.0%

Source: IIFL Research