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TATA CONSUMER 2021-22 Annual Report Analysis
Wed, 8 Jun

TATA CONSUMER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TATA CONSUMER Income Statement Analysis

  • Operating income during the year rose 7.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY22 as against 13.0% in FY21.
  • Depreciation charges increased by 9.1% and finance costs increased by 6.0% YoY, respectively.
  • Other income grew by 15.4% YoY.
  • Net profit for the year grew by 8.6% YoY.
  • Net profit margins during the year grew from 8.6% in FY21 to 8.7% in FY22.

TATA CONSUMER Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 116,020 124,254 7.1%
Other income Rs m 1,214 1,401 15.4%
Total Revenues Rs m 117,234 125,654 7.2%
Gross profit Rs m 15,131 16,667 10.2%
Depreciation Rs m 2,547 2,780 9.1%
Interest Rs m 687 728 6.0%
Profit before tax Rs m 13,111 14,560 11.1%
Tax Rs m 3,173 3,770 18.8%
Profit after tax Rs m 9,938 10,790 8.6%
Gross profit margin % 13.0 13.4
Effective tax rate % 24.2 25.9
Net profit margin % 8.6 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

TATA CONSUMER Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 32 billion as compared to Rs 31 billion in FY21, thereby witnessing an increase of 2.5%.
  • Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 15.9%.
  • Current assets rose 1% and stood at Rs 71 billion, while fixed assets rose 6% and stood at Rs 139 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 211 billion as against Rs 202 billion during FY21, thereby witnessing a growth of 4%.

TATA CONSUMER Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 145,345 151,415 4.2
 
Current Liabilities Rs m 30,945 31,726 2.5
Long-term Debt Rs m 2,875 2,419 -15.9
Total Liabilities Rs m 202,178 210,749 4.2
 
Current assets Rs m 70,486 71,357 1.2
Fixed Assets Rs m 131,692 139,392 5.8
Total Assets Rs m 202,178 210,749 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA CONSUMER Cash Flow Statement Analysis

  • TATA CONSUMER's cash flow from operating activities (CFO) during FY22 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -13 billion, an improvement of 223.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -10 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -8 billion from the Rs 9 billion net cash flows seen during FY21.

TATA CONSUMER Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 16,564 15,158 -8.5%
Cash Flow from Investing Activities Rs m -4,084 -13,218 -
Cash Flow from Financing Activities Rs m -4,260 -9,948 -
Net Cash Flow Rs m 8,838 -7,961 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA CONSUMER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an improvement from the EPS of Rs 10.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 759.5, stands at 64.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 5.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 125.9 134.8
TTM Earnings per share Rs 10.8 11.7
Diluted earnings per share Rs 10.8 11.7
Price to Cash Flow x 47.1 51.0
TTM P/E ratio x 59.2 64.9
Price / Book Value ratio x 2.9 4.6
Market Cap Rs m 422,462 692,661
Dividends per share (Unadj.) Rs 4.1 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA CONSUMER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY22, from 2.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 21.0x during FY22, from 20.1x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 7.1% during FY22, from 6.8% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 9.9% during FY22, from 9.3% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 5.5% during FY22, from 5.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 2.3 2.2
Debtors’ Days Days 2 2
Interest coverage x 20.1 21.0
Debt to equity ratio x 0.0 0.0
Return on assets % 5.3 5.5
Return on equity % 6.8 7.1
Return on capital employed % 9.3 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TATA CONSUMER has performed over the last 5 years, please visit here.

TATA CONSUMER Share Price Performance

Over the last one year, TATA CONSUMER share price has moved up from Rs 709.9 to Rs 759.5, registering a gain of Rs 49.6 or around 7.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 13,750.3 (down 0.4%). Over the last one year it has moved up from 13,313.7 to 13,750.3, a gain of 437 points (up 3.3%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for TATA CONSUMER and quarterly results for TATA CONSUMER)

Annual Report FAQs

What is the current share price of TATA CONSUMER?

TATA CONSUMER currently trades at Rs 763.5 per share. You can check out the latest share price performance of TATA CONSUMER here...

What was the revenue of TATA CONSUMER in FY22? How does it compare to earlier years?

The revenues of TATA CONSUMER stood at Rs 125,654 m in FY22, which was up 7.2% compared to Rs 117,234 m reported in FY21.

TATA CONSUMER's revenue has grown from Rs 69,095 m in FY18 to Rs 125,654 m in FY22.

Over the past 5 years, the revenue of TATA CONSUMER has grown at a CAGR of 16.1%.

What was the net profit of TATA CONSUMER in FY22? How does it compare to earlier years?

The net profit of TATA CONSUMER stood at Rs 10,790 m in FY22, which was up 8.6% compared to Rs 9,938 m reported in FY21.

This compares to a net profit of Rs 5,352 m in FY20 and a net profit of Rs 4,738 m in FY19.

Over the past 5 years, TATA CONSUMER net profit has grown at a CAGR of 17.4%.

What does the cash flow statement of TATA CONSUMER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TATA CONSUMER reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 15,158 m as compared to Rs 16,564 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -13,218 m as compared to Rs -4,084 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -9,948 m as compared to Rs -4,260 m in FY21.

Here's the cash flow statement of TATA CONSUMER for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations3,5562,09910,82216,56415,158
From Investments-741733-6,728-4,084-13,218
From Financial Activity-304-2,237-3,083-4,260-9,948
Net Cashflow2,9413931,5198,838-7,961

What does the Key Ratio analysis of TATA CONSUMER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TATA CONSUMER reveals:

  • Operating profit margins witnessed a fall and down at 13.4% in FY22 as against 13.0% in FY21.
  • Net profit margins grew from 8.6% in FY21 to 8.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of TATA CONSUMER for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)12.010.410.613.013.4
Net Profit Margin (%)8.36.55.68.68.7
Debt to Equity Ratio (x)0.10.10.10.00.0

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