Tata Consumer Q3 Results Review- Material Improvement In Salt Revenue Trajectory Is Pleasing: ICICI Securities

ICICI Securities Report

Tata Consumer Products Ltd.'s salt revenues grew up 27% (volumes up 4%) in 3Q. 90 basis points market share gains is good. We believe revival of salt business which enjoys strong competitive advantages and higher margins than the company's overall is discounted cash flow accretive.

India beverages is passing through transitory issues such as delayed winter in key region of North and East India. However, we believe pricing actions are likely to result in recovering market share loss of 113 bps in India tea in FY24.

International business profitability remains weak with high inflationary pressures, and currency weakness. However, recent price hikes have allowed Tata Consumer Products to recover Ebit margins sequentially by 240 bps.

We model recovery in all the three segments (tea, salt and international beverages) in FY24.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.