Business News

Tata Consumer Products on Friday reported an 8% jump in its net profit for the quarter ended September 2024 to Rs 364 crore (attributable to shareholders) versus Rs 338 crore posted in the year-ago period. The profit after tax (PAT) was above ET Now poll estimates of Rs 314 crore.The revenue from operations in the reported quarter stood at Rs 4,214 crore, up 13% over Rs 3,734 crore posted by the company in the corresponding quarter of the previous financial year.114355806The company's India beverages segment grew 3%, with tea volumes declining 4% YoY while the India Foods revenue grew 28% (+9% organic), the company filing said. Volume growth was 1% for the reported quarter.The international business recorded 7% revenue growth (5% in constant currency) with profitability improving by over 53% YoY.Tata Consumer's revenue was below ET Now poll estimates of Rs 4,340 crore.Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 11% with the margins contracting 30 bps to 14.9%. This was primarily led by higher input costs for the India tea business.The merger of its wholly-owned subsidiaries in India viz. NourishCo, Tata Soulfull, and Tata Smart Foodz was successfully completed during the quarter in line with the company's plans to simplify, synergise and scale the business.Meanwhile, Tata Starbucks is now the largest café operator in India with 457 stores across 70 cities, the company filing claimed.Profit before exceptional items and tax at Rs 424 crore is lower by 16%, primarily on account of finance costs and amortisation expenses relating to the acquisitions. The short-term debt taken for the acquisitions has now been paid off. The group net profit before exceptional items at Rs 388 crores is higher by 3%.Commenting on the earnings, Managing Director & CEO Sunil D’Souza said the company recorded continued growth and market share gain in the India salt business during the quarter in Tata Sampann & Tata Soulful. The India tea business was impacted by subdued category trends, he added."With the integration completed for both Capital Foods and Organic India, we are starting to see strong synergy benefits and both businesses witnessed strong quarter-on-quarter growth. We delivered a strong performance in the International Business along with significant margin expansion led by strong revenue growth in the UK and earlier structural interventions," D’Souza said."In India, we continued to strengthen our Sales & Distribution infrastructure with the rollout of a new Distributor Management system, centralised planning & dispatch capability and an auto replenishment system. Modern trade and e-commerce continue to be strong contributors to our growth. In addition, we are incubating new channels (Food Services/HoReCa and Pharmacies) to fuel growth," the MD said.

New Delhi: The Supreme Court on Friday held the Airports Economic Regulatory Authority (AERA), which regulates the aeronautical charges, can file an appeal against the orders of Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT). A bench comprising Chief Justice of India D Y Chandrachud and Justice J B Pardiwala and Manoj Misra said the appeals filed by AERA against a TDSAT order, which held that the authority cannot impose tariffs on ground and cargo handling services, were maintainable. AERA, the top court said, has a statutory duty to regulate tariff upon a consideration of multiple factors to ensure that airports were run in an economically viable manner without compromising on the interests of the public. "When AERA determines the tariff for aeronautical services in terms of Section 13(1)(a) of the AERA Act, it is acting as a regulator and an interested party. It is interested not in a personal capacity. Its interest lies in ensuring that the concerns of public interest... are duly preserved. Thus, AERA is a necessary party in the appeal against its tariff order before TDSAT and it must be impleaded as a respondent," directed the bench. The top court said the AERA can be impleaded as a respondent in an appeal against its order even if the provisions of the statute do not provide for it. This power can be read by necessary implication based on the role conferred on the Authority by the statute, it said. TDSAT in its order had held that AERA lacks authority for imposition of tariffs on services such as ground and cargo handling. The tribunal had previously held that ground and cargo handling can be classified into "non-aeronautical services" under the AERA Act, 2008. The TDSAT's order had come on January 13, 2023, on a plea filed by Delhi International Airport Ltd and Mumbai International Airport Ltd., challenging a communications by AERA on the issue of tariff. The top court directed its Registry to list the matter before the regular bench for adjudication of the appeals on merits.

Reflecting the lack of demand for Hyundai Motor India's IPO, the company's shares are currently available at a discounted rate compared to the issue price. The grey market premium (GMP) is at Rs 1,903, indicating a -3% premium over the issue price of Rs 1,960.If current trends continue, the stock is expected to experience a negative listing when it debuts on the bourses on October 22. The share allotment for the IPO will be finalized today.However, it is important to note that grey market premiums are merely indicators of how the company's shares are positioned in the unlisted market and can change rapidly.The Rs 27,870 crore IPO, which is India's largest public offering to date, barely made it through the final stages of the bidding process, thanks to strong demand from non-institutional investors. Both the retail and non-institutional investor categories of the issue were undersubscribed.There is a near consensus among analysts that subscribing to Hyundai's IPO will be a strong move for long-term investors in the growing passenger vehicle market, as consumers increasingly prefer larger and more premium cars. As many as 10 analysts have recommended that investors subscribe to the IPO for the long term.However, the premium price-to-earnings (P/E) valuation of 26x its FY25 earnings suggests that short-term investors may face disappointment, given the current GMP and valuation discussions.Hyundai has historically maintained a stable share market presence in India and enjoys strong loyalty among Indian consumers, thanks to its smooth and affordable after-sales service. With research and development support from Korea and an automated factory in Chennai, the company has optimized its operations while expanding its distribution network.Additionally, the automaker plans to gradually become a significant player in the electric vehicle (EV) segment."We believe the company can take advantage of the PV market in India with its diverse offerings. We have a Subscribe for long-term rating for the issue," said Arihant Capital.The issue was completely an offer for sale (OFS) of 14.2 crore shares, offloaded by the company's parent Hyundai Motor Global. Since the IPO was an OFS, all the proceeds will go to the selling shareholder.Even though the proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.