Tata Consumer Products Limited, the FMCG arm of Tata Group, reported an increase in consolidated net profit by 36% at ₹389 crore on the year-on-year (YoY) basis for the July to September quarter, as against ₹285 crore in the same period last year, the company said in a stock exchange filing on Thursday. The company’s revenue from operations for the quarter was up 11% at ₹3,363 crore for the quarter ended September, compared to ₹3,033 crore in the same period last year.
The company’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the September quarter surged by 5% at ₹438 crore on annual basis..
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products says, “We delivered another quarter of double-digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets.”
During the quarter under review, the FMCG major witnessed a decline of 7% in the revenue of its Indian packaged beverages business, weighed down by a tepid growth trajectory of its tea business. Compared to this, the revenue of the company’s international packaged beverages business witnessed a growth of 7% at ₹838.87 crore in the September quarter this year, compared to ₹781 crore in the same period last year. Overall, the company’s India Foods business registered 29% revenue growth in the September quarter, despite an elevated base that saw 23% growth in the same period last year.
Moreover, the FMCG major’s salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in Q2 last year.
“While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position,” says D’Souza.
“We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, and Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out-of-home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter,” he adds.
Tata Starbucks, the company’s flagship café outlet, recorded strong revenue growth of 57% and added 25 new stores during the September quarter across five cities. With this, the company has a total number of 300 stores across 36 cities.