Tata Consumer Products Announces Mixed Financial Results for Q2 FY25

Tata Consumer Products, a largecap company in the tea/coffee industry, recently announced its financial results for the quarter ending September 2024. According to MarketsMOJO, the stock call for Tata Consumer is ‘Hold’.

The company has seen a negative financial performance in the quarter, with a score of -10 compared to -8 in the previous quarter. However, there are some positive aspects to the financials. Tata Consumer has recorded the highest operating cash flow of Rs 1,936.68 crore annually in the last three years, indicating strong cash revenues from business operations. Additionally, the company has also shown an increase in profitability with the highest quarterly earnings per share (EPS) of Rs 3.68 in the last five quarters.

On the other hand, there are some areas of concern for Tata Consumer. The interest cost has grown by 152.95% over the previous half-yearly period, indicating increased borrowings. The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio falling each quarter in the last five quarters. Furthermore, the profit before tax less other income (PBT) for the quarter is at its lowest in the last five quarters and has also fallen by -8.98% year on year.

Overall, Tata Consumer’s financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors are advised to hold their position in the stock, as per MarketsMOJO’s recommendation.