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Tata Consumer Products Q4-FY24 Results: Profits See a Steep Fall

24 April 20244 mins read by Angel One
Tata Consumer Products has reported a steep fall in its Net profits for the Q4 FY 2023-24 results on Tuesday.The Company has also recommended a dividend of 775% on its face value.
Tata Consumer Products Q4-FY24 Results: Profits See a Steep Fall
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The Tata Group Company reported its fourth-quarter results on Tuesday, April 23 reporting a drop of about 22.5% in net profit to  Rs.267.7 crores which is below estimates. Though there is a rise in revenue.

Breakdown of Results

Tata Consumer Products in the fourth quarter has reported a rise of 8.5% in its revenue from operations to Rs.3,927 crores as compared to Rs.3,619 crores in the same quarter the previous year.

On operational parameters, The company’s EBITDA for the fourth quarter stood at Rs. 629.9 crores as compared to Rs.511.7 crores for the same quarter in the previous year. Factored by a strong and healthy operating performance The Net profit before tax before exceptional items stood at Rs. 427 crores.

Net profit of the company reported a drop of 22.5%, reported at Rs.267.7 crores, compared to Rs.345.6 crores of the same quarter last year.

The board has also recommended a Dividend of Rs.7.75 per equity share for the financial year 2023-24.

Parameters Figure
Revenue  Rs.3,927 Crores
EBITDA Rs.629.6 crores
EBITDA Margins 16%
Net Profit Rs.267.7 Crores

CEO- Sunil D’Souza on Performance

Tata Consumer Products CEO, Sunil D’Souza has said, “In India, we solidified our Sales & Distribution infrastructure; our total reach has expanded to 4 million outlets as of March ’24. We are strengthening our Rurban focus and are deepening our reach into rural areas. Alternate channels both modern and E-commerce recorded significant momentum and have continued to be strong growth drivers.”

Stock Performance After Results

After reporting below-expected Net Profit, The market has reacted negatively to Tata Consumer Results.  The stock is down by 5% in the morning trading session Today and is currently trading at Rs.1114.10 a piece.

Conclusion: The Company reported stable numbers on most of the parameters but the fall in net profit remained a key factor that investors intend to worry about, As the streets have negatively reacted to this fall in net profit and stock is trading at 5% down from its Yesterday’s closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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