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Tata Consumer shares fall 5% on missing expectations in Q4; global brokerage remains underweight

The exceptional loss for the current quarter (at Rs 63.93 crore) mainly represent costs relating to the business restructure and reorganisation of Rs 18 crore and loss on disposal of an overseas subsidiary/joint venture of Rs 46 crore, the company said.

May 07, 2021 / 09:48 AM IST
Tata Consumer Products

Tata Consumer Products

 
 
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Tata Consumer Products share price was down over 4 percent in the morning session on May 7, a day after the company declared its Q4 results.

Despite the company reporting profit of Rs 53.9 crore for the March 2021 quarter, against loss of Rs 76.49 crore in the year-ago quarter, the stock was trading in the red as the numbers missed analysts' expectations.

Net profit of Tata Tea and Tata Salt maker dipped 44 percent sequentially to Rs 133.34 crore in the January-March period, according to exchange filing.

"Consolidated net profit is higher as compared to corresponding quarter of the previous year on account of lower exceptional items and lower share of losses in associates & joint ventures," Tata Consumer Products said in its BSE filing.

"Profit before exceptional items and tax at Rs 262 crore is higher by 6 percent as compared to corresponding quarter of the previous year, mainly on account of growth in revenue and good control over expenditure, however, margins were impacted by tea cost inflation in India," the company added.

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The exceptional loss for the current quarter (at Rs 63.93 crore) mainly represent costs relating to the business restructure and reorganisation of Rs 18 crore and loss on disposal of an overseas subsidiary/joint venture of Rs 46 crore, the company added.

The firm also recommended a final dividend of Rs 4.05 per equity share for the financial year 2020-21.

Consolidated revenue in Q4FY21 came in at Rs 3,037.22 crore, thus registering a 26.3 percent growth over Rs 2,405.03 crore, reported in the corresponding quarter of the previous fiscal.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in feels that sustaining below Rs 640, this counter can eventually slip towards Rs 601 levels. For the time being, better to press the exit button and avoid considering fresh longs, he said.

Global research firm Morgan Stanley has an underweight call on the stock with target at Rs 494 per share. "Earnings missed our and consensus estimates. It has headwinds from tea inflation in domestic beverage business. It has lower growth in Tata Sampann and lower margin across segment," the firm added, according to a CNBC-TV18 report.

The stock was trading at Rs 618.35, down Rs 35.05, or 5.36 percent.

It has touched an intraday high of Rs 641.90 and an intraday low of Rs 616.65.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: May 7, 2021 09:48 am

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