Published on 5/08/2020 9:21:29 AM | Source: SPA Securities Ltd

Key News Dixon Q1, Godrej Consumer Products Q1 & Tata Consumer Products Q1 by SPA Securities

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Key News

Dixon Q1 result

Sales declined 55% YoY to Rs 517 crore & Net profit 93% to Rs 1.60 crore in the quarter ended June 2020 as against Rs 23.6 crore during the previous quarter ended June 2019. OPM dropped 132 bps to 3.3%.


Godrej Consumer Products Q1 result

Godrej Consumer Products posted a 3% fall YoY in its June quarter consolidated net profit to Rs 395 crore compared to Rs 408 crore in the year-ago period. The profit included a one-time gain of Rs 14 crore. Revenue of the company was down 12.5 percent YoY to Rs 2,327.3 crore versus Rs 2,348.8 crore in Q1 FY20. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 3.7 percent to Rs 472.7 crore against Rs 455.6 crore and the margin was at 20.3 percent versus 19.4 percent. The company’s domestic volume growth stood at 3%.


Tata Consumer Products Q1 result

Tata Consumer Products Ltd (TCPL) reported 81.78 per cent rise in net profit at Rs 345.55 crore for June quarter. The company has acquired 50 per cent stake of PepsiCo India in NourishCo Beverages Ltd, making it a wholly-owned subsidiary with effect from May 18, 2020 and hence TCPL has shown a gain of Rs 84 crore. Exceptional item for the current quarter represents gain of Rs 84 crore on conversion of a Joint Venture into a Subsidiary and costs relating to the business integration of foods business Rs 21 crore.

Revenue from operations was up 13.44 per cent to Rs 2,713.91 crore during the quarter led by volume and value growth in branded businesses both in India and International. The integration of foods and beverages businesses in India is progressing well and will unlock significant synergy benefits.

Demand for products for in-home consumption was buoyant, whereas business segments in out-ofhome consumption were adversely impacted. Its profit was also impacted due to the impact of COVID-19 on operations of Tata Starbucks.

Tata Starbucks' operations for Q1 were adversely impacted due to COVID-19. As of June 30th 2020, close to 60 per cent of the total 186 stores have reopened.

TCPL's revenue from its India – Beverages segment was up 10.99 per cent to Rs 1,000.46 crore as against Rs 901.37 crore. Its India - Foods business in first quarter of 2020-21 was up 18.94 per cent to Rs 589.06 crore as against Rs 495.22 crore in the year-ago period. Revenue from International - Beverages was up 14.99 per cent to Rs 867.38 crore as against Rs 754.28 crore.

On the outlook, the company said the lockdown conditions will have an adverse impact on out-of-home segments, and may cause supply constraints and result in commodity cost volatility.

Based on the trends observed, there is some tapering off of demand across geographies and significant hardening of commodity costs in India. Impact on future operations would to a large extent depend on how the pandemic develops.


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