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Operating performance in line with our estimates

Consolidated performance

* TATACONS reported an in-line revenue of INR39.3b, up 8.5% YoY in 4QFY24. EBITDA margin improved 190bp YoY to 16.0% (est. of 15.4%), fueled by a higher gross margin (up 430bp) of 46.1% vs. 41.8% in 4QFY23. EBITDA rose 23% YoY to INR6.3b (in line).

* The Indian branded business grew 10% YoY to INR24.8b, led by revenue growth of 3%/20% YoY in Indian branded beverage business/Indian food business to INR13.2b/INR11.6b. EBIT increased 3% YoY to INR3.2b during the quarter.

* International branded beverage revenue grew 7% YoY to INR10.5b with EBIT growth of 29% YoY to INR1.6b.

*  Adj. PAT stood at INR3.8b (in line), up 38% YoY in 4QFY24.

* For FY24, the company’s revenue/EBITDA/Adj. PAT grew 10%/23%/29% to INR152b/INR22.8b/INR14b.

Standalone performance

* Standalone revenue grew 13% YoY to INR26.1b, while EBITDA rose 8% YoY to INR4.0b in 4QFY24.

* For FY24, standalone revenue/EBITDA/Adj. PAT grew 11%/15%/10% to INR100b/INR16b/INR11.4b. Note: Standalone figures have been restated to implement the Tata Coffee amalgamation from this quarter onwards.

Other subsidiaries

* For 4QFY24, the US coffee revenue grew 3% YoY to INR3.9b, while the International tea revenue was up 9% YoY to INR6.7b.

* For FY24, the US coffee revenue declined 2% YoY to INR14.6b, while the International tea revenue rose 17% YoY to INR24.7b.

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