TATA CONSUMER 2023-24 Annual Report Analysis

Thu, 23 May

TATA CONSUMER has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TATA CONSUMER Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.8% in FY24 as against 14.6% in FY23.
• Depreciation charges increased by 24.0% and finance costs increased by 48.9% YoY, respectively.
• Other income grew by 45.6% YoY.
• Net profit for the year declined by 3.4% YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 8.6% in FY24.

TATA CONSUMER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	137,832	152,059	10.3%
Other income	Rs m	1,738	2,530	45.6%
Total Revenues	Rs m	139,570	154,589	10.8%
Gross profit	Rs m	20,110	19,497	-3.0%
Depreciation	Rs m	3,041	3,772	24.0%
Interest	Rs m	872	1,298	48.9%
Profit before tax	Rs m	17,936	16,957	-5.5%
Tax	Rs m	4,470	3,947	-11.7%
Profit after tax	Rs m	13,465	13,010	-3.4%
Gross profit margin	%	14.6	12.8
Effective tax rate	%	24.9	23.3
Net profit margin	%	9.8	8.6

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TATA CONSUMER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 62 billion as compared to Rs 39 billion in FY23, thereby witnessing an increase of 57.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 18.3%.
• Current assets fell 11% and stood at Rs 74 billion, while fixed assets rose 41% and stood at Rs 205 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 279 billion as against Rs 228 billion during FY23, thereby witnessing a growth of 22%.

TATA CONSUMER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	162,722	160,428	-1.4
Current Liabilities	Rs m	39,247	61,911	57.7
Long-term Debt	Rs m	2,061	1,684	-18.3
Total Liabilities	Rs m	227,625	278,788	22.5
Current assets	Rs m	83,086	74,266	-10.6
Fixed Assets	Rs m	144,539	204,522	41.5
Total Assets	Rs m	227,625	278,788	22.5

TATA CONSUMER Cash Flow Statement Analysis

• TATA CONSUMER's cash flow from operating activities (CFO) during FY24 stood at Rs 19 billion, an improvement of 32.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -19 billion, an improvement of 133.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 136% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -867 million net cash flows seen during FY23.

TATA CONSUMER Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	14,613	19,367	32.5%
Cash Flow from Investing Activities	Rs m	-8,278	-19,309	-
Cash Flow from Financing Activities	Rs m	-7,144	2,556	-
Net Cash Flow	Rs m	-867	2,815	-

Current Valuations for TATA CONSUMER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an decline from the EPS of Rs 14.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,117.9, stands at 81.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 55.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	148.4	159.6
TTM Earnings per share	Rs	14.5	13.7
Diluted earnings per share	Rs	14.1	13.7
Price to Cash Flow	x	41.0	55.8
TTM P/E ratio	x	50.2	81.9
Price / Book Value ratio	x	4.4	5.8
Market Cap	Rs m	718,289	936,684
Dividends per share (Unadj.)	Rs	8.5	7.8

Ratio Analysis for TATA CONSUMER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 2.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 14.1x during FY24, from 21.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.1% during FY24, from 8.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 11.3% during FY24, from 11.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 5.1% during FY24, from 6.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.1	1.2
Debtors’ Days	Days	2	2
Interest coverage	x	21.6	14.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	5.1
Return on equity	%	8.3	8.1
Return on capital employed	%	11.4	11.3

To see how TATA CONSUMER has performed over the last 5 years, please visit here.

TATA CONSUMER Share Price Performance

Over the last one year, TATA CONSUMER share price has moved up from Rs 769.9 to Rs 1,117.9, registering a gain of Rs 348.0 or around 45.2%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 20,055.8 (down 0.0%). Over the last one year it has moved up from 17,697.3 to 20,055.8, a gain of 2,358 points (up 13.3%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for TATA CONSUMER and quarterly results for TATA CONSUMER)