Tata Global Beverages - 4QFY2013 Result Review - Angel Broking

Tata Global Beverages posted a 5.0% yoy growth in consolidated net sales to Rs. 1,811cr aided by better operational performance and favourable foreign exchange translation impact. OPM rose marginally by 18bp yoy to 10.2%, aided by 246bp yoy increase in gross margins. During the quarter, the company's interest and depreciation costs rose by 99.7% and 20.7% respectively. The profitability was also impacted by Rs. 38cr of loss from associate companies (vs. 20cr loss in 4QFY2012). Other income was higher by 64% on yoy basis. Thus, despite a 7% yoy increase in operating profit, recurring PAT rose only marginally by 1.7%.

We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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