As stated by Chairman N Chandrasekaran during the company’s 60th Annual General Meeting (AGM), Tata Consumer Products Ltd.
(TCPL) is placing a significant amount of emphasis on its operations in India in the hopes of achieving higher growth rates inside the country in contrast to its operations in other countries.
The following are key highlights from FY23:
Revenue and Profit: The business reported an increase in consolidated revenue of 11% along with an increase in net profit of 30%. The India company had a growth of 10%, with substantial development in both the drinks (a growth of 1%) and the meals (a growth of 26%) categories of the firm.
overseas Business: Although TCPL has been putting much of its attention on expanding its local market, the company’s overseas business has also expanded, growing by 8%.
EBITDA and Cash Flow: Consolidated EBITDA for FY23 was up 7 percent year over year, and a healthy free cash flow to EBITDA ratio of over 100 percent was achieved. This was accomplished in spite of a 50bps year over year contraction in EBITDA margin as a result of volatility in the commodities environment.
The proposed dividend was calculated to be 8.45 rupees per share, representing a year-over-year rise of forty percent.
As on the 15th of May, 2023, the share price finished the day at Rs 787, resulting in a market capitalization of about Rs 73,000 crore. The average price of the company’s shares increased at a compound annual growth rate of 29% over the course of the previous five years and at a rate of 26% over the preceding three.
Tata Starbucks: In the fiscal year FY23, net revenues for Tata Starbucks amounted to Rs. 1,087 Cr.
In addition to this, TCPL is evaluating chances to grow into other categories and is open to the possibility of making acquisitions, both of which are in line with the company’s mission of expanding its companies in the food and beverage industries as well as investing in research and development.
The firm is also trying to increase its position in the coffee market, diversify its non-black tea industry, and provide ready-to-eat and ready-to-cook ethnic items in order to improve its worldwide portfolio.
Chandrasekaran also discussed the reorganization strategy for the firm, which intends to unleash synergies and efficiency through the proposed merging of Tata Coffee’s operations with TCPL. Chandrasekaran mentioned this proposal throughout his presentation.