Tata Consumer Products Q2 preview: Cons. PAT likely to decline 7% YoY; margins expected at 14.5%

Tata Consumer Products (TCPL)- Tata Group's leading FMCG company is slated to release its Q2 results later today after market hours. For the September quarter, Zee Business Research expects the Tata major to post a 7 per cent decline in consolidated PAT to Rs 314 crore as against Rs 338 crore in the same period last year.  The base had an exceptional item of Rs 15 crore. 

The revenue at the company is expected to soar 15 per cent on-year to Rs 4,310 crore as against Rs 3,734 crore. EBITDA or earnings before interest, taxes, depreciation and amortisation are also likely to increase 16 per cent to Rs 623 crore. In the same period last year, the company posted EBITDA of Rs 538 crore.

Also, margins may increase only by a tad and are expected at 14.5 per cent, versus 14.4 per cent in the same period last year.

Segment-wise growth

Overall, the company is expected to log 7 per cent organic growth. In the company's major tea segment- both the volume as well as value as likely to notch lower by 3 per cent and 1 per cent, respectively.

Further in its India food business, the research team expects organic growth of 12 per cent during the period. 

Similarly, its salts and Sampann business segments are estimated to clock 7 per cent and 30 per cent growth, respectively.

Also, the company's NourishCo business is seen to post 1 per cent growth during the review period. 

On September 1, 2024, TCPL merged NourishCo Beverages Limited with its other subsidiaries, Tata Consumer Soulfull Pvt Ltd and Tata SmartFoodz Ltd. The merger was done to simplify operations and increase efficiencies

Furthermore, the company's Capital Foods and Organic India businesses are also expected to post decent growth during the review period. 

TCPL share price performance

Last ahead of the company's results, shares of TCPL traded lower with a drag of nearly 1 per cent at Rs 1081.8 per share on the BSE. The stock YTD has underperformed with a negative return of -0.17 per cent, while in the last one year it has gained over 21 per cent.