Tata Consumer Products Q4 Results: Sales up 17%, margins narrow but beat estimates

Tata Consumer Products Ltd. reported its March quarter results after market hours on Wednesday, April 23, where its sales increased from the same quarter last year, but margins narrowed due to higher costs.

The company's sales went up by 17.3% from last year to ₹4,608 crore. The sales figures were in-line with the CNBC-TV18 poll of ₹4,575 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 1.4% from last year to ₹621 crore, which is also in-line with the CNBC-TV18 poll of ₹600 crore.

Tata Consumer's EBITDA margin narrowed 250 basis points from last year to 13.5%, but were higher than expectations from a CNBC-TV18 poll of 13.1%.

Net profit for the quarter stood at ₹345 crore, which is higher than last year's figure of ₹216 crore. The net profit for the quarter was aided by an exceptional gain of ₹45 crore, while the base quarter had an exceptional loss of ₹215.8 crore.

The company attributed the exceptional item to fair value gains of ₹120 crore on remeasurement of contingent considerations, which was offset by an asset write-down of ₹72 crore and restructuring costs of ₹3 crore.

Shares of Tata Consumer Products had ended 0.7% higher on Wednesday at ₹1,145.

This is a developing story.