Tata Consumer targets high growth in India: Top highlights from the AGM

Tata Consumer Products Ltd (TCPL) is betting big on its India business, eyeing higher growth rates domestically in comparison to its international ventures, as outlined by Chairman N Chandrasekaran at the company's 60th Annual General Meeting (AGM).

Key Highlights from FY23:

Revenue and Profit: The company reported an 11 per cent increase in consolidated revenue, with a net profit rise of 30 per cent. The India business marked a 10 per cent increase, with notable growth in both beverages ( an increase of 1 per cent) and foods (an increase of 26 per cent).

International Business: Despite the focus on domestic growth, TCPL's international business also saw an increase, up by 8 per cent.

EBITDA and Cash Flow: Consolidated EBITDA for FY23 was up 7 per cent YoY, and a robust free cash flow to EBITDA ratio of nearly 100 per cent was recorded, despite a 50bps YoY contraction of EBITDA margin due to volatility in the commodity environment.

Dividend: The proposed dividend stood at Rs 8.45 per share, a 40 per cent YoY increase.

Market Capitalisation: The share price closed at Rs 787 as of May 15, 2023, with the market capitalisation at approximately Rs 73,000 crore. The company observed a 29 per cent CAGR in share price over the past five years and a 26 per cent over the past three.

Tata Starbucks: Net sales for Tata Starbucks reached Rs. 1,087 Cr in FY23.

In addition to this, TCPL is open to potential acquisitions and is exploring opportunities to expand into new categories, in alignment with its goal of scaling the beverages and food businesses and investing in research and development.

The company is also looking to strengthen its international portfolio by diversifying its non-black tea business, broadening its presence in the coffee market, and introducing ready-to-eat and ready-to-cook ethnic products. Chandrasekaran also touched upon the company's reorganisation plan, which aims at unlocking synergies and efficiencies through the proposed merger of Tata Coffee's businesses into TCPL.