Shares of Tata Consumer were trading in the red on Friday ahead of its second-quarter results on Friday. The company is set to announce its financial performance for the quarter, and investors are closely watching for any updates on revenue growth and profitability.
In comparison, other companies like Oberoi Realty Ltd, Hindustan Zinc Ltd, and Mastek Ltd have already released their Q2 FY25 results. It will be interesting to see how Tata Consumer's performance stacks up against its peers in the industry.
Tata Chemicals reported a 54.67% decline in its net profit during the second quarter ended September. This news may have contributed to the negative sentiment surrounding Tata Consumer shares as investors brace for the company's earnings report.
In April 1997, Ratan Tata, then chairman of the Tata Group, visited Tata Tea Limited's operations in Munnar for the first time. This historical context adds to the significance of Tata Consumer's upcoming earnings release and the company's evolution over the years.
Revenue growth is a key metric to watch for in Tata Consumer's Q2 results. The company reported a 13% increase for the quarter, reaching 4200 Crores. However, India Beverages Revenue only saw a 3% growth with a volume decline, which could impact the overall performance.
The stock market saw mixed movements on the day, with the Sensex losing 73.48 points and the Nifty losing 72.95 points. This broader market trend may have also influenced the decline in Tata Consumer's share price.
Tata Consumer's revenue from operations for the reported quarter stood at Rs 4214 crore, up 13% from the previous quarter. This positive growth in revenue could provide some support for the company's stock despite the overall market downturn.
There have been weak internals from Tata Consumer, with Nestle's volumes falling 1.5% and margins missing expectations. Additionally, DMart called out some challenges in the retail sector, which could impact Tata Consumer's performance moving forward.
Brokerages have had mixed reactions to Tata Consumer Products' Q2FY25 results, with differing outlooks on the company's performance and prospects. This uncertainty in analyst sentiment may contribute to the volatility in Tata Consumer's share price leading up to the earnings release.
Ticker: NSE:TATACONSUM
