We are en route to becoming a total FMCG company and focus is on growth businesses doing well: Sunil D'Souza, Tata Consumer

economictimes.indiatimes.com:

Sunil D'Souza, MD & CEO, Tata Consumer, says “cash flow conversion is up 100 bps and we remain on track to deliver 95% to 100% of EBITDA to cash for the full year. As for ROC, which you have kept mentioning as our bugbear, is up by 210 bps, hopefully that trajectory continues even on the strategic front and that is the key to delivering good numbers, staying focussed on the strategic pieces, staying focussed on the basics and executing them well. ”

These numbers are good, solid and they deserve a table thumping applaud. It is a rarity when we say that FMCG companies are beating estimates. How have you managed to beat the peers and analyst estimates?
We have delivered a decent set of numbers. Just to highlight, topline was up 11%, EBITDA was up 30%. Group net profit was minus 7% but if I offset the one-time land sale that was there last year, net of exceptionals, we are up by 24%. EBITDA is up 220 bps. We are seeing volume growth across all the businesses. Growth businesses in India are firing at 40, international is up 13%. Gross margins across all businesses more or less where they should be, bar the US where we have got a little bit of work to do.

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Financial numbers, our working capital is down by about two days. Cash flow conversion is up 100 bps and we remain on track to deliver 95% to 100% of EBITDA to cash for the full year. As for ROC, which you have kept mentioning as our bugbear, is up by 210 bps, hopefully that trajectory continues even on the strategic front