Tata Consumer Products Q3 Results Preview: Revenue likely to grow 10%, margin may expand by 100 bps

Tata Consumer Products, a Tata group consumer products company whose popular brands include Tata Tea, Tetley, Tata Salt, Eight O'Clock Coffee and Himalayan Water, is scheduled to announce its financial results for the October-December period (Q3 FY24) on Wednesday, February 7. Analysts widely expect easing raw material costs to aid the Tata group firm’s margin.

According to Zee Business research, Tata Consumer Products is estimated to report a consolidated net profit of Rs 347 crore for the quarter ended December 31, 2023, translating into a decline of 4.7 per cent compared with the corresponding period a year ago. The analysts expect the Tata group firm to register 10.2 per cent growth in revenue to Rs 3,831 crore for the fiscal third quarter.

Zee Business analysts peg Tata Consumer Products’ earnings before interest, tax, depreciation, and amortisation (EBITDA) for the December quarter at Rs 541 crore, marking a 19.2 per cent increase on a year-on-year basis. They estimate the Tata group firm’s margin, a key measaure of profitability, to improve by 100 basis points (bps) on a year-on-year basis to 14 per cent on the back of lower raw material prices.

The analysts peg Tata Consumer’s India-branded tea business to clock growth of 6.0 per cent with a 3.0 per cent increase in volumes.

All eyes will be on the company's beverages and food business, and its outlook on the international business.

How Tata Consumer Products fared in July-September (Q2 FY24)

For the fiscal second quarter, Tata Consumer Products reported a decline of 6.6 per cent in consolidated net profit to Rs 363.9 crore.

Its revenue from operations grew 11 per cent to Rs 3,733.8 crore, on the back of strong growth in its domestic business, according to a regulatory filing.

Tata Consumer Products shares: Past performance

Tata Consumer Products shares have grown more than 59 per cent in the past year, outperforming a 23 per cent rally in the headline Nifty50 index.

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