Tata Consumer Q4 Review - Elevated Tea Prices Curbs Margins; Growth Story Intact: ICICI Direct
Range of Tata Consumer Products. (Photo: BloombergQuint)

Tata Consumer Q4 Review - Elevated Tea Prices Curbs Margins; Growth Story Intact: ICICI Direct


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Tata Consumer Products Ltd. reported a mixed set of numbers with splendid growth in tea, salt and pulses categories.

Revenue grew 26.3% led by robust 59.6% growth in India beverage (tea, coffee and Nourisco) segment and 22.4% growth in consumer foods business (salt, pulses).

International beverages sales remained flat. Non branded business saw growth of 28.8%.

With significant increase (~70%) in tea procurement prices, the company took staggered price hikes.

However, price increases were insufficient to pass on entire cost inflation.

The sharp increase in Indian tea prices led to a 623 basis points contraction in gross margins.

Click on the attachment to read the full report:

ICICI Direct Tata Consumer Q4FY21 Result Update.pdf


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