Stockrabit · Analysts
Questions across 1 call

Rohan Kalle

InCred Capital

TATA CONSUMER PRODUCTS LIMITED

TATA CONSUMER PRODUCTS LIMITED CC-Mar24.pdf · 2024-04-24
Just wanted to check on the non-branded business margins. So, I'm assuming you've got strong gains on lower price inventory of coffee. So, I just want to understand how much of this inventory do we have left? Assuming now you will be procuring at curr ent market prices, how should we look at these margins sustainably, at least in the near term? And second question on the asset write -downs that are mentioned in the exceptional items. I just want to understand what the INR620 million asset write-downs was? Sunil D’Souza: So let me take the first one, and I'll ask Ashish to take the second p iece. Like I said, the unbranded business is in 2 piece s. There is largely a flow -through with a delayed impact of either upper or down on coffee prices in the solubles business because we buy coffee, convert it into soluble/extractions and then sell it off. On the coffee plantations, there is a straight revenue uplift, which increases margins. Right now, we are seeing prices going up, and therefore, there is a benefit for the coffee pl antations more than soluble. On the soluble business, we do not expect too much movement because of prices going up and down. Ashish?