The shares of a leading FMCG player of TATA Group climbed as much as 6% on Friday’s trade after the company reported its Q3FY25 results.
Share Price Movement
The shares of Tata Consumer Products Ltd, with a market capitalization of Rs 1 Lakh Crores, as of Friday afternoon were trading around Rs 1,030 per share, which was 6.6% higher than the previous close of Rs 967. It generated a return of 12% last month.
Reason for the Rise
The company’s Revenue from Operations grew by 17%, from Rs 3,804 Crores in Q3FY24 to Rs 4444 Crores in Q3FY25, and on a quarterly basis, it grew by 5.5% from Rs 4,214 Crores.
However, its consolidated net profits declined by 6% from Rs 302 Crores in Q3FY24 to Rs 282 Crores in Q3FY25, and on a quarterly basis, it declined by 23% from Rs 367 Crores.
Its EBITDA was flat at Rs 578 Crores in Q3FY25 as against Rs 576 Crores in Q3FY24, driven by significant inflation in tea costs in India.
Segment-wise Performance
Revenue from Indian Business saw a growth of 19%, from Rs 2,375 Crores in Q3FY24 to Rs 2,834 Crores in Q3FY25. Revenue from International Business grew by 16%, from Rs 1,028 Crores to Rs 1,192 Crores over the same period. Total Branded Business saw a growth of 18% and Non-Branded Business grew 9% YoY.
Management Commentary
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products commented that “Tata Consumer Products reported a 17% revenue growth in Q3FY25, driven by strong performance in India Beverages and Foods. The Indian tea business saw robust double-digit growth, while the salt business and Tata Sampann gained market share. Recent acquisitions, Capital Foods, and Organic India performed well and expanded in Food Service and pharma channels. Internationally, the company strengthened its No 2 position in branded tea in the UK. Tata Starbucks improved sequentially and expanded to 473 stores across 74 cities in India.”
About Tata Consumer Products
Tata Consumer Products Limited is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The Company’s portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks, and mini meals. Its food portfolio includes brands such as Tata Salt, Tata Sampann, Tata Soulfull, Ching’s Secret, and Smith & Jones. In India, Tata Consumer Products has a reach of over 263 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products.
Price Targets
Nuvama Institutional Equities cut its target price to Rs 1,255 per share, down from Rs 1,350 earlier, while maintaining its ‘buy’ call on the firm. Jefferies maintained a ‘Buy’ rating on Tata Consumer with a revised target price of Rs 1,100 (down from Rs 1,130). Goldman Sachs maintained a ‘Neutral’ rating on Tata Consumer Products with a target price of Rs 1,040.
Written By Adhvaitha Nayani
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