Tata Consumers Q1FY24 Results: 12% Revenue Growth, 22% PAT Increase

Tata Consumers Products, a leading consumer goods company, has released its consolidated financial results for the first quarter of the fiscal year 2024 (Q1FY24). The company\\'s performance showcases a robust growth in revenues and profits, reflecting its resilient business model and strategic initiatives.

Revenue and Profit Growth:

In Q1FY24, Tata Consumers Products witnessed a remarkable 12% year-on-year (YoY) increase in consolidated revenue, reaching Rs. 3,741 Crores compared to Rs. 3,327 Crores in Q1FY23. On a quarter-on-quarter (QoQ) basis, the revenue growth remained strong, rising by 3% from Rs. 3,619 Crores in the previous quarter, Q4FY23.

Furthermore, the group\\'s Profit After Tax (PAT) surged impressively, growing by 22% on a YoY basis, amounting to Rs. 338 Crores in Q1FY24, compared to Rs. 277 Crores in the same period last year. On a QoQ basis, the PAT increased by 17%, up from Rs. 290 Crores in Q4FY23.

Margin Improvement:

The company\\'s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin witnessed an 80 basis points (bps) improvement. This growth can be attributed to higher product prices, particularly in categories such as salt and international business products. Additionally, the group\\'s PAT margin also exhibited strong growth, expanding by approximately 130 bps, from 8.3% in Q1FY23 to 9.6% in Q1FY24.

Standalone Performance:

Tata Consumers Products\\' standalone financials mirrored the consolidated results, demonstrating a consistent growth trend. Standalone revenue grew by 12% YoY, while EBIT (Earnings Before Interest and Taxes) surged by 17%, and the standalone PAT experienced a remarkable growth of 23% on a YoY basis. Moreover, the standalone PAT margin expanded by 110 bps in Q1FY24 compared to the corresponding quarter in the previous fiscal year.

Geographical Revenue Split:

In terms of geographical revenue distribution, the company\\'s Indian business accounted for 73% of the total revenue, while the international business contributed 27%. This well-balanced revenue split reflects the company\\'s successful expansion into international markets.

Management Outlook:

The management of Tata Consumers Products remains cautiously optimistic about the future. Although there has been an encouraging trend in the demand for core category products, the company intends to exercise caution due to uncertainties surrounding rural recovery and unpredictable monsoons.

On the international front, the company is closely monitoring the demand for its products in key markets, considering the context of global inflation remaining flat. The management\\'s proactive approach towards monitoring international market dynamics will enable them to navigate potential challenges effectively.

Conclusion:

Tata Consumers Products has delivered an impressive performance in Q1FY24, with significant revenue growth and a substantial increase in profits. The company\\'s strategic focus on core products and its successful expansion into international markets have played a crucial role in its sustained success. Investors can remain confident in Tata Consumers Products\\' growth prospects, given its prudent management outlook and strong financial position.