On April 25th, Tata Consumer Products will release its Q4FY23 earnings. According to a CNBC-TV18 poll, the company's topline is expected to grow by 11 percent to Rs 3,528 crore, while EBITDA is expected to grow by only 6 percent, suggesting a possible compression in margins of 50 to 60 basis points.
However, net profit is expected to increase by 11 percent, reaching around Rs 265 crores.
The poll also predicts that India's overall business will grow by 10 to 12 percent led by the India foods business with a growth of 26 percent. The India tea business is only expected to grow by 1 to 2 percent due to price cuts caused by the reduction in tea prices overall.
NourishCo, which Tata Consumer Products entirely acquired, is expected to generate revenues of close to Rs 150 crores this quarter, and the company expects it to grow up to Rs 1,000 crores next year.
The margins in the international business will be an essential factor to track, as they have been under pressure for the last few quarters, despite showing gradual quarter-on-quarter improvement.
If they improve beyond expectations, it could be a positive sign for Tata Consumer. Despite trading at 44 times, which is not particularly cheap, it is close to its median valuations.
Tata Consumer is up almost 5 percent as we speak, and this is ahead of numbers tomorrow. So let's see what the street is anticipating this time. Before today the stock was down almost 20 percent from its 52-week high.
As of now, Tata Consumer has risen by nearly 5 percent ahead of its upcoming earnings report. It remains to be seen what the market expects this time around.
Prior to today's increase, the stock had fallen by approximately 20 percent from its highest point in the past 52 weeks.