How did Tata Consumer report such good numbers in the Q3 of this year?
Answer
Answer
Tata Consumer report Q3 PAT up Rs29% at Rs.218 crore on the back of revenue growth of 23.13% growth to Rs.3,070 crore. In terms of verticals of the company, the India beverages business was up 50% yoy while the India packaged foods business was up 20%. The international beverages business grew a modest 9% due to several export constraints.
Operating profits of Tata Consumer were up 15.7% at Rs.197 crore; growing much slower than the top line due to the sharp spike in input costs of raw materials used. Consequently, the operating profit margins or the OPM fell from 10.30% in the Dec-19 quarter to 9.67% in Dec-20 quarter.
Profit after tax or PAT was up 29% at Rs.218 crore purely on the strength of better performance by the associate companies of Tata Consumer. PAT margins improved from a level of 6.79% to 7.11% in the Dec-20 quarter on a yoy basis.