Q1FY23 Preview: Tata Consumer Products: Revenue seen at Rs33,204 million; PAT at Rs2,973 million

9 Aug 2022 , 01:03 PM

Result date: 10th August
Recommendation: Add
Target Price: Rs840

Analysts at IIFL Capital Services forecast a flattish growth for the domestic tea business of Tata Consumer Products in the June 2022 quarter. This is because of the intense summer (leading to low single digit volume growth) and deflation in the prices of tea (passed on by the company). Salt business of the company is expected to grow in high teens in the quarter. This growth will be driven by increase in prices rather than volume. NourishCo business of the company is expected to do well this quarter because of demand momentum and a favorable base effect. Eight O’ Clock business is also likely to post growth in double digits because of low base of the year-ago quarter. International tea business is forecasted to register growth in mid to high single digits in the June quarter.

Revenue of Tata Consumer Products in the June quarter is forecasted at Rs33,204 million. This will be a y-o-y growth of 10.4%. Profit After Tax (PAT) is forecasted at Rs2,973 million. This will be a y-o-y growth of 58.2%.

Key management insights to look into:

• Demand trends across categories and markets
• Outlook on input costs, pricing action and margins
• Update on new product launches in the India Foods business

Rs. Million	June 2022 estimates	Y-o-Y
Revenue	33,204	10.4%
EBITDA	4,383	9.7%
Profit After Tax	2,973	58.2%

Source: IIFL Research