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📊 Analysis of Tata Consumer Products Q3 FY25 & 9M FY25 Results 📈

Lesson 78/97 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

📊 Analysis of Tata Consumer Products Q3 FY25 & 9M FY25 Results 📈

1️⃣ Volume Growth & Constant Currency Growth

📌 Q3 FY25:

🔹 Overall Consolidated Revenue Growth: 📈 17% YoY (9% Organic).
🔹 India Beverages: 🚀 16% YoY Growth (9% Organic) 📦 with Tea Volumes 📦 up 7% YoY.
🔹 India Foods: 🥗 31% YoY Growth (11% Organic).
🔹 International Business: 🌎 8% Revenue Growth (4% in Constant Currency).

📌 9M FY25:

🔹 Overall Consolidated Revenue Growth: 📊 15% YoY (8% Organic).
🔹 India Beverages: 🍵 8% YoY Growth (2% Organic).
🔹 India Foods: 🧂 30% YoY Growth (11% Organic).
🔹 International Business: 🌍 8% Growth in Reported Terms (6% in Constant Currency).

2️⃣ Consolidated Sales Growth

📌 Q3 FY25:
💰 ₹4,444 Cr (+17% YoY)

📌 9M FY25:
💰 ₹13,010 Cr (+15% YoY)

3️⃣ Segmental & Geographical Share & Growth

📊 Segment-wise Revenue & Growth (Q3 FY25)

🇮🇳 India Business: ₹2,834 Cr (+19% YoY)
🌎 International Business: ₹1,192 Cr (+16% YoY)
🏭 Non-branded Business: ₹446 Cr (+9% YoY)
📦 Total Branded Business: ₹4,026 Cr (+18% YoY)

🌍 Geographical Revenue Share (Q3 FY25)

🇮🇳 India Business: 📈 56%
🌎 International Business: 📊 44%

📊 Segment-wise Revenue & Growth (9M FY25)

🇮🇳 India Business: ₹8,304 Cr (+14% YoY)
🌍 International Business: ₹3,355 Cr (+17% YoY)
🏭 Non-branded Business: ₹1,409 Cr (+20% YoY)
📦 Total Branded Business: ₹11,659 Cr (+15% YoY)

🌍 Geographical Revenue Share (9M FY25)

🇮🇳 India Business: 📈 60%
🌎 International Business: 📊 40%

4️⃣ Profit Margins (Q3 FY25 vs Q3 FY24)

📊 Margins Overview:

🏆 EBITDA Margin: 📉 13.0% (-210 bps YoY)
🏆 EBIT Margin: 📉 9.6% (-330 bps YoY)
🏆 PBT Margin: 📉 9.2% (-430 bps YoY)
🏆 Net Profit Margin: 📉 6.3% (-160 bps YoY)

5️⃣ Consolidated Profit Growth

📌 Q3 FY25:

💰 EBITDA: ₹578 Cr (Flat YoY)
📉 PBT (Before Exceptional Items): ₹408 Cr (-20% YoY)
📉 Net Profit (Group Level): ₹282 Cr (-6% YoY)

📌 9M FY25:

💰 EBITDA: ₹1,878 Cr (+11% YoY)
📉 PBT (Before Exceptional Items): ₹1,297 Cr (-14% YoY)
📉 Net Profit (Group Level): ₹938 Cr (-6% YoY)

6️⃣ Profitability, Liquidity, Solvency & Valuation Ratios at CMP of ₹1,069

📊 Profitability Ratios:

📈 ROE: ~10-12%
📈 ROA: ~5-6%
📈 ROCE: ~12-15%

📊 Liquidity Ratios:

💧 Current Ratio: >1.5x (Healthy Liquidity)
💧 Quick Ratio: >1.0x (Comfortable Liquidity Position)

📊 Solvency Ratios:

⚖️ Debt-to-Equity Ratio: <0.5x (Low Leverage)
💳 Interest Coverage Ratio: >4x (Healthy Coverage)

📊 Valuation Ratios (CMP ₹1,069):

🔹 P/E Ratio: ~89x (based on TTM EPS ~₹11.93)
🔹 EV/EBITDA: ~25-27x
🔹 Dividend Yield: ~0.9-1.1%

7️⃣ Key Insights & Highlights

✅ Strong Growth in Topline 📈

🚀 India Foods grew 31% YoY & India Beverages grew 16% YoY.
🍵 Tea Volume Growth of 7% YoY, backed by strategic pricing actions.
🌎 International Business Profitability up 35% YoY, driven by cost efficiencies.
⚡ Margins impacted by tea cost inflation, but strategic pricing helped offset.
🧂 Tata Sampann (23% Growth) & Value-Added Salts (31% Growth) maintained momentum.
☕ Tata Starbucks expanded to 473 stores in 74 cities, adding 16 new stores.

8️⃣ Near-Term & Long-Term Outlook

🔎 Near-Term (Next 2-3 Quarters):

📉 Profitability Pressures due to tea cost inflation & higher interest expenses.
📈 Focus on Execution Excellence, Digital Expansion, and Premiumization.
🚀 Continued Growth Momentum in India Foods, RTD, & Tata Sampann.
🌎 International Business to Maintain Strong Margins.

🔮 Long-Term (2-5 Years):

📊 Growth Drivers: Health & Wellness, Premiumization, Digital Expansion, & International Markets.
⚖️ EBITDA Margin Improvement Expected as Tea Cost Stabilizes.
💰 Strong Cash Flow Generation for Further Acquisitions & Organic Growth.
☕ Tata Starbucks Expansion & RTD (Ready-to-Drink) Growth to Continue.

🔥 Final Thoughts 🔥

✅ Tata Consumer has delivered a strong topline growth of 📈 17% in Q3FY25 & 📊 15% in 9MFY25.
✅ India Foods, Tata Sampann & International Business led the growth.
✅ Short-term profitability is under pressure due to higher tea costs, but long-term outlook remains strong.
✅ Stock Valuation at 89x P/E is high, suggesting strong growth expectations in premiumization & digital sales.

📢 Disclaimer & Disclosure Statement

Important Investor Advisory Notice

This research analysis is for informational purposes only and should not be considered as financial, investment, or legal advice. The information provided herein is based on publicly available financial reports, market data, and our analysis. Investors are advised to exercise caution and discretion before making any investment decisions.

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Piyush Patel

Product Designer

4.75

Profile

Class Sessions

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📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way

📊 Analysis of Tata Consumer Products Q3 FY25 & 9M FY25 Results 📈

📊 Analysis of Tata Consumer Products Q3 FY25 & 9M FY25 Results 📈

1️⃣ Volume Growth & Constant Currency Growth

📌 Q3 FY25:

🔹 Overall Consolidated Revenue Growth: 📈 17% YoY (9% Organic).

🔹 India Beverages: 🚀 16% YoY Growth (9% Organic) 📦 with Tea Volumes 📦 up 7% YoY.

🔹 India Foods: 🥗 31% YoY Growth (11% Organic).

🔹 International Business: 🌎 8% Revenue Growth (4% in Constant Currency).

📌 9M FY25:

🔹 Overall Consolidated Revenue Growth: 📊 15% YoY (8% Organic).

🔹 India Beverages: 🍵 8% YoY Growth (2% Organic).

🔹 India Foods: 🧂 30% YoY Growth (11% Organic).

🔹 International Business: 🌍 8% Growth in Reported Terms (6% in Constant Currency).

2️⃣ Consolidated Sales Growth

📌 Q3 FY25: 💰 ₹4,444 Cr (+17% YoY)

📌 9M FY25: 💰 ₹13,010 Cr (+15% YoY)

3️⃣ Segmental & Geographical Share & Growth

📊 Segment-wise Revenue & Growth (Q3 FY25)

🇮🇳 India Business: ₹2,834 Cr (+19% YoY)

🌎 International Business: ₹1,192 Cr (+16% YoY)

🏭 Non-branded Business: ₹446 Cr (+9% YoY)

📦 Total Branded Business: ₹4,026 Cr (+18% YoY)

🌍 Geographical Revenue Share (Q3 FY25)

🇮🇳 India Business: 📈 56%

🌎 International Business: 📊 44%

📊 Segment-wise Revenue & Growth (9M FY25)

🇮🇳 India Business: ₹8,304 Cr (+14% YoY)

🌍 International Business: ₹3,355 Cr (+17% YoY)

🏭 Non-branded Business: ₹1,409 Cr (+20% YoY)

📦 Total Branded Business: ₹11,659 Cr (+15% YoY)

🌍 Geographical Revenue Share (9M FY25)

🇮🇳 India Business: 📈 60%

🌎 International Business: 📊 40%

4️⃣ Profit Margins (Q3 FY25 vs Q3 FY24)

📊 Margins Overview:

🏆 EBITDA Margin: 📉 13.0% (-210 bps YoY)

🏆 EBIT Margin: 📉 9.6% (-330 bps YoY)

🏆 PBT Margin: 📉 9.2% (-430 bps YoY)

🏆 Net Profit Margin: 📉 6.3% (-160 bps YoY)

5️⃣ Consolidated Profit Growth

📌 Q3 FY25:

💰 EBITDA: ₹578 Cr (Flat YoY)

📉 PBT (Before Exceptional Items): ₹408 Cr (-20% YoY)

📉 Net Profit (Group Level): ₹282 Cr (-6% YoY)

📌 9M FY25:

💰 EBITDA: ₹1,878 Cr (+11% YoY)

📉 PBT (Before Exceptional Items): ₹1,297 Cr (-14% YoY)

📉 Net Profit (Group Level): ₹938 Cr (-6% YoY)

6️⃣ Profitability, Liquidity, Solvency & Valuation Ratios at CMP of ₹1,069

📊 Profitability Ratios:

📈 ROE: ~10-12%

📈 ROA: ~5-6%

📈 ROCE: ~12-15%

📊 Liquidity Ratios:

💧 Current Ratio: >1.5x (Healthy Liquidity)

💧 Quick Ratio: >1.0x (Comfortable Liquidity Position)

📊 Solvency Ratios:

⚖️ Debt-to-Equity Ratio: <0.5x (Low Leverage)

💳 Interest Coverage Ratio: >4x (Healthy Coverage)

📊 Valuation Ratios (CMP ₹1,069):

🔹 P/E Ratio: ~89x (based on TTM EPS ~₹11.93)

🔹 EV/EBITDA: ~25-27x

🔹 Dividend Yield: ~0.9-1.1%

7️⃣ Key Insights & Highlights

✅ Strong Growth in Topline 📈

🚀 India Foods grew 31% YoY & India Beverages grew 16% YoY.

🍵 Tea Volume Growth of 7% YoY, backed by strategic pricing actions.

🌎 International Business Profitability up 35% YoY, driven by cost efficiencies.

⚡ Margins impacted by tea cost inflation, but strategic pricing helped offset.

🧂 Tata Sampann (23% Growth) & Value-Added Salts (31% Growth) maintained momentum.

☕ Tata Starbucks expanded to 473 stores in 74 cities, adding 16 new stores.

8️⃣ Near-Term & Long-Term Outlook

🔎 Near-Term (Next 2-3 Quarters):

📉 Profitability Pressures due to tea cost inflation & higher interest expenses.

📈 Focus on Execution Excellence, Digital Expansion, and Premiumization.

🚀 Continued Growth Momentum in India Foods, RTD, & Tata Sampann.

🌎 International Business to Maintain Strong Margins.

🔮 Long-Term (2-5 Years):

📊 Growth Drivers: Health & Wellness, Premiumization, Digital Expansion, & International Markets.

📌 Q3 FY25:
💰 ₹4,444 Cr (+17% YoY)

📌 9M FY25:
💰 ₹13,010 Cr (+15% YoY)