Tata Global - Q1FY2014 Result Review - Angel Broking

For 1QFY2014 Tata Global's performance was below expectations on Top-line, margins, and bottom-line front. The company posted a 4.7% yoy improvement in its consolidated net sales to Rs. 1,796cr, aided by a 7% yoy growth in the top-line of Tea Business. However, coffee business posted a marginal de-growth in net sales to Rs. 469cr. On the operating front consolidated OPM rose 94bp yoy to 10.6%. While the profits of tea business rose 8% yoy, the coffee business posted a 34% yoy increase in its profit despite lower sales. The company's adjusted PAT came in below estimates at Rs. 91cr (vs. Rs. 83cr in 1QFY2013).

We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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