Tata Consumer Products Q1 results preview: Sampann brand to see robust growth; PAT expected to rise 17% YoY

Tata Consumer Products Q1: Tata Consumer Products (TCPL) is scheduled to release its June quarter (Q1FY24) numbers later today. The company's domestic branded tea business is expected to post a 5 per cent year-on-year (YoY) rise in volume growth, while its salt business is likely to post muted growth, as per Zee Business Research. The salt business is likely to see an improvement in margins, though. Further, TCPL's India foods business is estimated to see 20 per cent growth, while its overseas subsidiaries are expected to post growth in the range of 6-7 per cent. These aside, Tata Consumer Products' NourishCo is expected to see robust growth. The gross margins of TCPL are expected to see the impact of increasing tea prices.

As regards the international market, the company is expected to see improvement in operating margins in the US and UK due to price hikes taken by the company. The company's popular brand, Sampann, is estimated to post strong growth on the back of the increase in the prices of pulses and poha, the research desk notes. Meanwhile, the company's margins are expected to improve due to a cut in ad spending. 

Number-wise, Tata Consumer Products is expected to report a consolidated net profit of Rs 323 crore against Rs 277 crore registered in the year-ago period, which is a 17 per cent growth. Revenue is likely to rise 12 per cent YoY to Rs 3,731 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) are estimated to grow 17 per cent YoY to Rs 534 crore. EBITDA margins are seen at 14.3 per cent against 13.7 per cent registered in the corresponding quarter of the previous fiscal.

Tata Consumer Products' share price

The stock of the company has jumped 21.4 per cent during the three-month period (June quarter). In comparison, the benchmark Nifty50 index gained 8.6 per cent during the window, Trendlyne data show.