Thursday, October 31, 2019

Tata Global Beverages rallies 6%, nears record high on healthy Q2 numbers

Shares of Tata Global Beverages rallied 6 per cent to Rs 309 on Thursday, gaining 10 per cent in the past three trading days on the BSE, after the company reported a strong set of numbers for the quarter ended September 2019 (Q2FY20). The stock of Tata Group Company was quoting at its 52-week high level and was close to its all-time high price of Rs 329, touched on the BSE in January 2018.

The company’s profit before taxes (PBT), excluding one-off items included under other Income in the prior year, grew 28 per cent year-on-year (YoY) at Rs 192 crore in Q2FY20. Consolidated net profit jumped 45 per cent to Rs 160 crore on YoY basis.

The consolidated revenue from operations during the quarter increased 4 per cent to Rs 1,834 crore, driven by improvements in both branded and non-branded business. In the constant currency (CC) terms, revenue grew 5 per cent. EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 100 basis points (bps) to 12.9 per cent.

The management said improvement is driven by branded business, both India and international, coupled with stable performance in non-branded businesses. The India business recorded continued value and volume growth. The flagship brands in India recorded good growth and the company will continue to focus on white space opportunities in the Indian market. International markets reflected volume growth in both tea and coffee, it added.

The joint venture company Tata Starbucks clocked a 26 per cent growth in revenue for the quarter. It entered Gujarat in August, with 10 stores, now has total 163 stores spread across 10 cities in India. The consumer connection scores are at an all time high, the company said.

At 10:20 am, the stock was trading 5 per cent higher at Rs 305, as compared to a 0.44 per cent rise in the S&P BSE Sensex. The trading volumes on the counter surged nearly four-fold with a combined 9 million shares changing hands on the NSE and BSE so far.

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