Views on Tata Global Beverages 3QFY2014 results - Angel Broking

Views of Mr. V. Srinivasan (Research Analyst - FMGC, Angel Broking) on Tata Global Beverages 3QFY2014 results:

"For 3QFY2014 Tata Global Beverages' (Tata Global) performance was below estimates. The company posted 8% yoy growth in its top-line to Rs. 2,057cr aided by good performance in some key markets and favourable foreign exchange translation impact. Tea business posted top-line growth of 11.1%, while coffee business posted a growth of 2%. OPM came in below estimates and stood at 8.3% (estimate of 9.5%). During the quarter, the company's profitability was affected by higher investment behind brands and new initiatives. While the tea business posted 16.6% yoy growth in its profits, coffee business posted 47% yoy de-growth in profits. The reported PAT rose by 49% yoy to Rs. 120cr aided by tax credit of Rs. 46cr arising out of stake sale in US based functional beverage company. However, adjusted PAT was down 6% yoy and stood at Rs. 87cr. We maintain our neutral recommendation on the stock."

Source : Equity Bulls

Keywords