Q4FY23 Preview: Tata Consumer Products: Revenue seen at Rs 35,085 million, PAT at Rs 2,248 million

24 Apr 2023 , 10:20 AM

Result date: 25^th April, 2023

Recommendation: Add

Target price: Rs 760

 

Tata Consumer Products is likely to put up a mixed performance for the March 2023 quarter. Analysts at IIFL Capital Services believe the company’s tea business could witness low-to-mid-single digit volume growth, but marginally positive in value terms. The Salt and Sampann portfolio is expected to witness low double-digit volume growth during the quarter. NourishCo should continue its momentum and deliver strong growth in the quarter. Overall, domestic business is likely to perform well even as international business lags behind.

Sales growth is expected at ~10%, whereas EBITDA growth is expected to be ~2% as compared to the year-ago quarter.

The company’s Profit After Tax or PAT though could decline 2.9% over the year-ago quarter. 

Important management insights to watch out for:

• Outlook on volumes and tea prices
• Updates on acquisitions front, new product launches

Rs Million	March 2023 estimates	YoY change
Revenue	35,085	10.5%
EBITDA	4,543	2.3%
Profit After Tax	2,248	(2.9)%

Source: IIFL Research