Market Reaction
Tata Consumer Products' share price plunged 4.54%, hitting an intraday low of ₹1,098.60 on the BSE after the company released its Q4FY25 results. The drop came despite robust profitability growth, reflecting mixed investor sentiment.
Quarterly Performance Snapshot
Revenue
- Q4FY25 revenue from operations stood at ₹4,608 crore, marking a 17.3% year-on-year (YoY) increase from ₹3,927 crore in Q4FY24.
Net Profits
- Consolidated net profit surged 59% YoY, reaching ₹345 crore, compared to ₹216.63 crore in the same quarter last year.
EBITDA
- EBITDA for the quarter declined by 1.4% YoY to ₹620.8 crore.
EBITDA Margins
- EBITDA margin dropped 256 basis points to 13.5%, reflecting rising input costs and pressure on operating margins.
Company Outlook
Tata Consumer Products, a key player in the FMCG segment under the Tata Group, continues to focus on double-digit revenue growth and improving EBITDA in the upcoming quarters.
Key Highlights:
- India tea segment reported 2% YoY volume growth, slightly below expectations.
- Margin recovery is anticipated with:
- Price hikes in tea and salt
- Stabilization of input prices
- Improved tea crop yield in the current harvest season
- International operations are expected to maintain strong operating performance
- The premium RTD (Ready-To-Drink) portfolio is gaining momentum
- Integration of Capital Foods and Organic India is enhancing growth prospects for the Indian food business
Summary
Despite strong profit growth in Q4FY25, Tata Consumer Products share experienced a dip of over 4% as investors reacted to margin pressure and operational performance. While the revenue and profit numbers show solid momentum, the focus remains on margin recovery and sustained growth domestically and globally.
The coming quarters will be crucial for maintaining investor confidence and driving long-term performance as the company continues to leverage synergies from recent acquisitions and focuses on expanding its premium offerings.
Easy & quick
Leave A Comment?