Tata Group stocks: Tata Consumer, Tata Elxsi, Nelco fall up to 5% post Q4 results

Shares of Tata Group companies such as Tata Consumer Products, Tata Elxsi, and Nelco were reeling under selling pressure on Wednesday, falling up to 5% in early trade after they released their quarterly numbers last evening. In contrast, the broader market witnessed positive trade, with the BSE Sensex rising by 180 points to 73,919, and the Nifty50 gaining by 36 points to 22,404 level.

Tata Elxsi was the top loser among these companies with the share price declining as much as 5.3% to ₹7,000.70. The market capitalisation slipped to ₹44,176 crore with 5,790 shares changing hands over the counter.

Similarly, Tata Consumer shares tumbled 5.2% to hit a low of ₹1,112, while the market capiatlisation dipped to ₹1.06 lakh crore.

Meanwhile, Tata Group-owned Nelco shares fell as much as 3.7% to ₹777.70 after a flat start. The market cap of the smallcap stock decreased to ₹1,780 crore.

The sell-off in Tata Group stocks was triggered as investors gave thumbs down to their fourth quarter earnings report.

Tata Consumer Products, the FMCG arm of the Tata Group, posted a 23% decline in its consolidated profit after tax (PAT) at ₹268 crore in Q4 FY24, compared with ₹346 crore in the same period last year. The consolidated revenue from operations was up 9% YoY to ₹3,927 crore, with strong performance in India business, which grew 10%. The EBITDA grew by 22% YoY at ₹631 crore, while margin improved to 13.1 % from 12% in the corresponding period last fiscal. The board of the company has also recommended a final dividend of ₹7.75 per equity share of ₹1 each (775%) for the financial year 2023-24.

Tata Elxsi, the global design and technology services company, reported a net profit of ₹196.93 crore for the quarter ended March 31, 2024, down 4.6% quarter-on-quarter compared to ₹206.4 crore in  Q3 FY24 and lower by 2.32% against ₹201.5 crore in same period last year. The revenue from operations stood at ₹905.9 crore, which was down as compared to ₹914.23 crore in Q3FY24, but higher than ₹837.91 crore registered in Q4 FY23. The company also declared a dividend of ₹70 per share for the fiscal 24.

On the other hand, Tata Group satellite services firm Nelco reported a 7% increase in net profit at ₹6.1 crore for the fourth quarter that ended March 31, 2024, against ₹5.7 crore in the corresponding quarter last year. The revenue from operations fell marginally by 0.5% to ₹81.6 crore from ₹82 crore in the same period of the preceding fiscal. At the operating level, EBITDA rose 12.5% YoY to ₹14.7 crore, while margin stood at 18% in Q4 FY24 as compared to 20.5% in the corresponding period in the previous fiscal. The board of directors has recommended a final dividend of ₹2.20 per share for the financial year ended March 31, 2024. 

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