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Driven by new business, Tata Consumer Products is expected to register double-digit growth in revenue in the second quarter of the financial year 2024-2025.
According to analysts, the fast-moving consumer goods company’s revenue is expected to grow up to 13.5 per cent year-on-year .
“High tea costs are expected to weigh on the Indian tea business. Capital Foods and organic tea categories are expected to witness margin expansion,” mentions Motilal Oswal.
During the quarter, FMCG companies are expected to see an uptick in rural demand.
“In 2QFY25, the FMCG demand trends have been similar to those in the past few quarters, implying no material uptick in demand. Moreover, heavy rains and floods in various parts of the country weighed on certain out-of-home consumption categories (like Beverages). That said, a few companies have stated that rural demand growth has outperformed urban, albeit on a low base. We expect most companies to report flattish. To slight compression in their gross and EBITDA margins year-on-year,” mentions a BNP report.
“Revenue for the quarter to be 16.6 per cent year-on-year including the affect from Capital foods and Organic India. We expect India foods volume growth to be 10 per cent year-on-year and -1 per cent year-on-year for the India beverages business,” stated YES Securities.
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