Tata Consumer Products slips 5% on Q4 profit decline of 27%

Tata Consumer Products Limited shares dropped more than 5% on Wednesday, April 24, after the FMCG major reported nearly 27% decline in Q4 net profit year-on-year.

In its earnings report released for the quarter and the financial year ended March 31, 2024, Tata Consumer Products reported a consolidated net profit of ₹212.3 crore in Q4FY24, 26.6% lower than ₹289.6 crore reported in the year-ago quarter.

Following the announcement of Q4 results, shares of Tata Consumer Products Limited were under pressure on Wednesday and the stock dropped as much as 5.73% to an intraday low of ₹1,106 apiece on the NSE.

However, the FMCG stock recovered some losses and closed 5.48% lower at ₹1,104 apiece on the NSE.

Sequentially, the company’s net profit dropped nearly 30% when compared to the third quarter of FY24. In Q3, the net profit of the Tata Group company stood at ₹301.51 crore.

Despite the decreasing net profit, the company reported healthy EBITDA (earnings before interest, tax, depreciation and amortisation). In Q4FY24, consolidated revenue grew by almost 9% to ₹3,927 crore. The India beverages and India foods segments led the growth in revenue with ₹1,324 crore (3%) and ₹1,153 crore (20%), respectively. The US coffee segment witnessed revenue growth of 3% to ₹388 crore, along with the international tea segment at 9% to ₹665 crore.

In the third quarter of FY24, EBITDA also saw an increase of 21%, reaching ₹631 crore. The group’s net profit before exceptional items also went up by 46% to ₹427 crore.

Tata Consumer Products Limited Performance in FY 24

An analysis of numbers for the entire financial year 2024 shows that the group’s net profit has gone down by 8% when compared to the financial year 2023. The group’s net profit for FY 2024 is at ₹1,215 crores. This decrease is also a result of the impact of exceptional items on the profits.

In FY 2024, revenue increased by 10% to ₹15,206 crores, while EBITDA increased by 24% to ₹2,323 crores. ‘India Growth’ enterprises maintained their robust growth path, expanding by 40% in FY24 and comprising 18% of the Indian business sector, an increase from 15% in FY23.