TATA CONSUMER PRODUCTS
Q1 FY 21 RESULTS REVIEW
Management
N Chandrasekaran Chairman
Ajoy Misra Managing Director & CEO
L Krishnakumar Executive Director & Group CFO
COMPANY OVERVIEW
Tata Global Beverages Ltd or Now called as TATA CONSUMER PRODUCTS LTD, has a portfolio of five brands in the domestic market namely Tata Tea,Tetley, Kanan Devan, Chakra Gold and Gemini.
Tetley offers customized products to each country ranging from black, green, fruit and herbal teas, iced ready-to-drink teas and an extensive range of exotic speciality tea. It caters to Australian, Middle East, West Asia, North Africa, Poland, Russia and Kazakhstan markets.
The company is also into the strawberry preservation business. They offer vocational rehabilitation as well as an additional source of income to elder children.
|
TATA Consumer Products (in Rs. Cr.) |
Jun '20 |
Mar '20 |
Jun '19 |
YOY |
QOQ |
|
Net Sales |
1,605.43 |
1,335.31 |
968.82 |
65.71 |
20.23 |
|
Consumption of Raw Materials |
603.91 |
527.09 |
532.14 |
13.49 |
14.57 |
|
Purchase of Traded Goods |
340.15 |
287.42 |
6.5 |
5133.08 |
18.35 |
|
Increase/Decrease in Stocks |
5.62 |
-26.4 |
66.03 |
-91.49 |
-121.29 |
|
Employees Cost |
71.77 |
74.35 |
56.23 |
27.64 |
-3.47 |
|
depreciation |
29.59 |
33 |
13.68 |
116.3 |
-10.33 |
|
Other Expenses |
201.81 |
204.55 |
161.03 |
25.32 |
-1.34 |
|
P/L Before Other Inc. , Int., Excpt. Items & Tax |
296.09 |
127.38 |
133.21 |
122.27 |
132.45 |
|
Other Income |
45.7 |
16.7 |
38.4 |
19.01 |
173.65 |
|
P/L Before Int., Excpt. Items & Tax |
341.79 |
144.08 |
171.61 |
99.17 |
137.22 |
|
Interest |
6.53 |
6.79 |
5.49 |
18.94 |
-3.83 |
|
P/L Before Exceptional Items & Tax |
335 |
137.29 |
166.12 |
101.82 |
144.2 |
|
Exceptional Items |
-21 |
-41.41 |
-8.06 |
160.55 |
-49.29 |
|
P/L Before Tax |
314.26 |
95.88 |
158.06 |
98.82 |
227.76 |
|
Tax |
81.95 |
24.95 |
51.96 |
57.72 |
228.46 |
|
Net Profit |
232.31 |
70.93 |
106.1 |
118.95 |
227.52 |
|
Equity Share Capital |
92.16 |
92.16 |
63.11 |
46.03 |
0 |
|
Basic EPS |
2.52 |
0.77 |
1.68 |
50 |
227.27 |
|
MP |
543 |
||||
|
PE |
53.86905 |
TOO HIGH |
|||
|
VOLUMES |
18,13,411 |
||||
|
52 Wk L/H |
214 |
591.75 |
|
Annual Results |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Sales |
9,637 |
7,251 |
6,815 |
6,779 |
6,636 |
|
Other Income |
111 |
157 |
94 |
83 |
82 |
|
Total Income |
9,749 |
7,408 |
6,909 |
6,862 |
6,718 |
|
Total Expenditure |
8,861 |
6,621 |
6,113 |
6,109 |
6,431 |
|
EBIT |
887 |
787 |
795 |
753 |
286 |
|
Interest |
77 |
52 |
42 |
91 |
116 |
|
Tax |
274 |
260 |
185 |
198 |
200 |
|
Net Profit |
535 |
473 |
567 |
463 |
-30 |
|
Historical Prices |
|||
|
3yr bef |
Current Price |
%Gain / Loss |
|
|
Open Price |
211.05 |
552 |
161.55 |
|
2yr bef |
|||
|
Open Price |
237.9 |
552 |
132.03 |
|
1YR BEF |
|||
|
Open Price |
257.2 |
552 |
114.62 |
|
3M BEF |
|||
|
Open Price |
369.2 |
552 |
49.51 |
Dividend Summary
For the year ending March 2020 TATA Consumer Products has declared an equity dividend of 270.00% amounting to Rs 2.7 per share. At the current share price of Rs 540.60 this results in a dividend yield of 0.5%.
The company has a good dividend track report and has consistently declared dividends for the last 5 years.
|
Per Share Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Basic EPS (Rs.) |
5 |
6 |
8 |
6 |
0 |
|
Diluted Eps (Rs.) |
5 |
6 |
8 |
6 |
0 |
|
Book Value [Excl. Reval Reserve]/Share (Rs.) |
162 |
132 |
127 |
114 |
112 |
|
Dividend/Share (Rs.) |
3 |
3 |
3 |
2 |
2 |
|
Face Value |
1 |
1 |
1 |
1 |
1 |
|
Margin Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Gross Profit Margin (%) |
15 |
13 |
14 |
13 |
11 |
|
Operating Margin (%) |
12 |
11 |
12 |
11 |
9 |
|
Net Profit Margin (%) |
6 |
7 |
8 |
7 |
0 |
|
Return Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Return on Networth / Equity (%) |
3 |
6 |
7 |
6 |
0 |
|
ROCE (%) |
7 |
9 |
9 |
5 |
0 |
|
Return On Assets (%) |
2 |
4 |
5 |
4 |
0 |
|
Leverage Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Debt to Equity (x) |
0 |
0 |
0 |
0 |
0 |
|
Interest Coverage Ratios (%) |
15 |
16 |
19 |
8 |
5 |
|
Valuation Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
P/E (x) |
39 |
50 |
32 |
48 |
-2,158 |
|
P/B (x) |
2 |
2 |
2 |
2 |
1 |
|
EV/EBITDA (x) |
20 |
15 |
18 |
12 |
12 |
|
P/S (x) |
3 |
2 |
2 |
1 |
|
|
Growth Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
3 Yr CAGR Sales (%) |
33 |
6 |
2 |
3 |
7 |
|
3 Yr CAGR Net Profit (%) |
-1 |
22 |
-3 |
-2 |
12 |
Share Holding Pattern in (%)
|
|
||||
|
Standalone |
Jun-20 |
Mar-20 |
Sep-19 |
Jun-19 |
|
Promoters |
34.69 |
34.69 |
34.45 |
34.45 |
|
Pledged |
2.71 |
2.71 |
3.99 |
3.99 |
|
FII/FPI |
19.49 |
17.08 |
27.8 |
26.61 |
|
Total DII |
25.43 |
27.85 |
18 |
18.82 |
|
Fin.Insts |
0.11 |
0.09 |
0.26 |
2.3 |
|
Insurance Co |
5.63 |
6.19 |
1.84 |
0.15 |
|
MF |
13.42 |
14.86 |
10.67 |
10.63 |
|
Others DIIs |
6.27 |
6.71 |
5.23 |
5.74 |
|
Others |
20.38 |
20.39 |
19.74 |
20.12 |
|
Total |
99.99 |
100.01 |
99.99 |
100 |
STRENGTHS
Rising Net Cash Flow and Cash from Operating activity
High TTM EPS Growth
Good quarterly growth in recent results
Growth
in Net Profit and increasing Profit Margin (QoQ) and YoY
Company with Low Debt
Book Value per share Improving for last 2 years
FII / FPI or Institutions increasing their shareholding
Growth in Operating Profit and operating margins (YoY)
Weaknesses
MFs decreased their shareholding last quarter
RoCE declining in the last 2 years
ROE declining in the last 2 years
ROA declining in the last 2 years
OPPORTUNITIES
Rising Delivery Percentage Compared to Previous Day and Month, Strong Volumes
Turnaround - loss to profit QoQ
Negative to Positive growth in Sales and Profit with Strong Price momentum
THREATS
Increasing Trend in Non-Core Income
High PE (PE > 40)
CHARTS
Lowest price touched in Apr-2020
thereafter rising price momentum
MONTHLY TECHNICAL RATING
Very Bullish
Valuation (Yr Ending Matrch 2020)
Market Cap (Rs Cr.) 49,777.62
P/E 91.32
Book Value (Rs) 117.5
Dividend (%) 270
Industry P/E 60.16
EPS (TTM) 5.92
P/C 75.4
Price/Book 4.6
Dividend Yield.(%) 0.5
Face Value (RS) 1
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