Result Update Tata Global Beverages

Result Update Tata Global Beverages 

Tata Global Beverages : ItⳠCoffee Time 

Reco : Sell    Cmp : 150    Target :  130

Tata Global Beverages LtdⳊ(TGBL⳩ Q2FY13 result was a mixed bag -- revenue growth was in line but operating margin was weaker than expected. Consolidated revenue grew 13.5% YoY to Rs 18.4 bn (vs. our estimate of Rs 18.3 bn) primarily led by its coffee business (includes translation gains due to rupee depreciation). However, EBITDA margin at 7.8% (up 40 bps YoY) was lower than our estimate of 8.9% on higher tea prices. Adjusted PAT at Rs 1.3 bn (vs. our estimate of Rs 1.1 bn) was aided by lower tax rate (at 15% in Q2FY13 vs. 34% in Q2FY12).