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Tata Consumer Targets 20% Margin In Medium Term, Says CEO Sunil D'Souza — Exclusive

Contribution from the growth business stands at 17% and aims to increase this contribution to 20% by the end of this fiscal year, the CEO said.

<div class="paragraphs"><p>Offerings by Tata Consumer Products. (Source: Company website)</p></div>
Offerings by Tata Consumer Products. (Source: Company website)

Tata Consumer Ltd. aims for a 20% Ebitda margin in the medium term, according to Managing Director and Chief Executive Sunil D'Souza.

Directionally, margins will go up in the short term, but in the medium term, the direction is for a target of 20% Ebitda margin, D'Souza told NDTV Profit in an interview.

"Contribution from the growth business stands at 17% and aims to increase this contribution to 20% by the end of this fiscal year," he said. The contribution to growth in business guidance will increase to 30% going forward, he said.

Tata Consumer Products Q3 FY24 (Consolidated, YoY)

  • Revenue up 9.47% at Rs 3,803.9 crore.

  • Ebitda up 26.13% at Rs 572.4 crore.

  • Margin at 15.04% vs 13.06%.

  • Net profit down 17.26% at Rs 301.5 crore.

The company's net profit declined 17.26% year-on-year to Rs 301.5 crore in the quarter ended December 2023, according to an exchange filing. This was on account of an exceptional item recorded pertaining to a one-off provision related to a 25-year-old pension liability in the UK.

Revenue from operations increased, mainly driven by underlying growth of 10% in Indian business, 6% in international business, and 4% in non-branded business. EBITDA witnessed 26% growth.

The India packaged beverage business delivered 4% revenue growth. The food business grew by 5%. Coffee continued its strong performance, with revenue growth of 32% for the quarter.

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