Tata Stock Dips As Profits Tumble 21% In Q3

Shares of Tata Consumer slid sharply on Thursday morning as the markets seemed unimpressed by the company’s December quarter results.

What Happened: In the December quarter, the Tata Group company’s consolidated net profit fell short of street estimates, declining by 21% to ₹279 crore compared to ₹352 crore in the same quarter last year

The FMCG giant’s revenue from operations saw a 9% year-on-year increase to ₹3,804 crore, primarily fueled by a strong performance in its India business, which grew by 10%. EBITDA for the quarter also showed growth, increasing by 26% year-on-year to ₹576 crore.

Within its India Packaged Beverages business, there was a 4% revenue growth. The company maintained its market leadership in tea within the e-commerce channel. Additionally, coffee demonstrated robust performance with a 32% revenue growth in the December quarter.

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Internationally, the business revenue surged by 11% in the December quarter, or 6% in constant currency terms. Tata Starbucks expanded its footprint by adding 22 net new stores during the quarter and entering six new cities, bringing the total number of stores to 392 across 55 cities as of December 2023.

Reacting to the results Morgan Stanley maintained its “overweight” rating for the stock with a price target of ₹1,305. The analysts said that the company’s topline growth along all three business segments beat estimates.

Price Action: Tata Consumer’s share price was down 1.67% to trade at ₹1,146.75 as the markets opened on Thursday.

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