Tata Global Q1 net seen up 7%, volume growth may be dismal

Tata Global Beverages is expected to report consolidated net profit of Rs 104 crore in June quarter, up 7 percent compared to Rs 97.2 crore in the year-ago period, according to a CNBC-TV18 poll.

Revenue is seen rising 5.8 percent year-on-year to Rs 2,025 crore, led by 9 percent growth in domestic tea business (equal mix of price and volume led growth). Coffee business is likely to post a more robust 30 percent growth while low single digit growth is likely in international business.

Overall volume growth may remain dismal with subdued urban demand in June quarter.

Operating profit may increase 4.5 percent year-on-year to Rs 210 crore but margin may fall 10 basis points to 10.4 percent. Analysts feel the advertising spend may keep margin under pressure.