Tata Consumer Products

Tata Global Beverages, for Q3FY17, posted a consolidated net profit of Rs.144 crore, up 118% (YoY) on a 3% increase in total income at Rs.1744 crore. This phenomenal surge in bottomline despite the meagre rise in topline can be directly attributed to the exceptional gain of Rs.49 crore v/s an exceptional loss of Rs.11 crore in previous Q3. But even if we remove this exceptional gain, the rise in net profit is very healthy at 44%.

Its EBITDA came in at Rs.184 crore, up 8% while margins rose very marginally – from 10.1% to 10.6%.

Though advertising costs for the quarter jumped up 21%, it kept a tight leash on other costs and kept the total operating costs capped at same level as in Q3FY16. A 55% increase in other income, a 29% reduction in interest outgo helped the overall net profit.

Its 9MFY17 net profit is at Rs.404 crore v/s Rs.532 crore in FY16. Surely it will be able to surpass that in current fiscal. Equity is at Rs.63.11 crore and annualised EPS is at Rs.1.30 (FV of Re.1).