Growth and margin outlook remain strong for Tata Consumer Products

Valuations are pricing in some of the growth

Tata Consumer Products posted a strong operational performance in the March (Q4FY22) quarter. Unlike major consumer companies which are grappling with higher commodity costs and have reported a dip in their profitability, Tata Consumer expanded its margins in the quarter.

The consolidated gross margins expanded by 540 basis points over the year ago quarter to  44.6 per cent, the highest in seven quarters, on account of profitability gains in the beverage business.The segment, which accounts for 60-70 per cent of revenues both on a standalone and consolidated basis, benefitted from the dip in tea prices. The North India tea prices