INSUBCONTINENT EXCLUSIVE:
Tata Consumer is expected to report steady double-digit revenue growth for the June quarter, powered by solid performance in its India Foods
and domestic beverages businesses
Profit for the quarter is seen rising 12% YoY, according to the average estimate of five brokerages.Brokerages expect consolidated revenue
Volume growth across the portfolio is pegged at around 5%, with pricing playing a moderate role in topline performance.Domestic beverages, a
and price hikes.Nuvama and Kotak suggest that tea inflation remains a concern, although the full impact is expected to ease in the second
half as tea leaf prices decline.NourishCo, which was a growth standout last year, may deliver flattish revenues this quarter, weighed down
by a subdued summer, unseasonal rains, and softer out-of-home consumption.
Live EventsThe India Foods business is expected to remain a
hikes.Value-added salt variants are expected to outperform the base portfolio
Strong pricing action in US Coffee in June is expected to offset some sluggishness
Still, the segment remains under watch for volatility in foreign markets and input costs.The non-branded business, which includes
plantations and solubles is likely to see muted growth due to a sharp fall in Robusta coffee prices and lower mark-to-market gains.This,
combined with inflation in Indian tea and the normalisation of margins in the unbranded business, is expected to weigh on the company's
compared to 15.3% in the same period last year
lower depreciation, which should help TCPL post mid-single-digit earnings growth at the net level.Gross margins are expected to decline
consumer demand, Tata Consumer remains structurally well-placed
But Q1 results are likely to reflect a transitional quarter, where strong revenue execution meets temporary cost and margin
headwinds.Investors will be keenly watching management commentary on rural demand trends, input price dynamics, and the performance
trajectory of new businesses.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own
These do not represent the views of the Economic Times)
