Tata Consumer Products Q1 Preview: Net Profit likely to be steady YoY; margins to see expansion

Tata Consumer Products Limited (TCPL)- the Tata group's FMCG major with products spanning Tata Soulfull to Tata Sampann is slated to release its Q1 results on July 30. Zee Business research desk estimates the company to post a good quarterly show with consolidated revenue seen inching higher by 17 per cent on-year to Rs 4,390 crore in comparison to Rs 3,741 crore posted in the same period a year ago. EBITDA- a key profitability metric is also seen to move higher by 22 per cent on-year to Rs 665 crore versus Rs 545 crore.

Nevertheless, profit at the entity is seen to remain steady with a likely profit of Rs 338 crore as the increasing interest cost and acquisition cost will weigh. The margin at the company is expected to clock a 40 bps increase from 14.6  per cent in Q1FY24 to 15 per cent in the recently concluded quarter.

The desk estimates the company's domestic tea business to clock 2 per cent volume growth, while its India food business is seen to register 13.5 per cent on-year growth during the review period. Further, the company's pulses business labelled under the Sampann brand is seen to register 35 per cent growth. Furthermore, the copany

The company's Capital Foods revenue during the review period is seen to remain at around Rs 155 crore. Furthermore, the company's Organic India revenue is seen at Rs 60 crore.
 

Key watch-outs

The company's management commentary will be on the radar of investors and other stakeholders.

TCPL share price

Ahead of the results, the company's results traded with a cut of over 1 per cent at Rs 1,200.35 apiece on the BSE. The company's stock in the last one year has surged 42 per cent.