Tata Consumer Products Ltd (TCPL) reported a commendable 29.67 per cent rise in consolidated net profit to INR 358.57 crore in the first quarter ended June 30. This impressive growth can be attributed to the company’s strong performance in its domestic business segment.
In a BSE filing, TCPL (formerly known as Tata Global Beverages Ltd) stated that in the April-June quarter of the previous year, the company had recorded a net profit of INR 276.51 crore.
During the quarter under review, TCPL witnessed a notable increase in its revenue from operations, rising by 12.45 per cent to reach INR 3,741.21 crore. This growth marked a significant improvement compared to the corresponding period of the preceding fiscal when the revenue stood at INR 3,326.83 crore.
“Revenue from operations increased by 12 per cent as compared to the corresponding quarter of the previous year, mainly driven by strong growth of 16 per cent in India business, 3 per cent in international business and 5 per cent in non-branded business,” TCPL said in an earnings statement.
The “profit before exceptional items and tax at INR 495 crore is higher by 23 per cent reflecting strong growth in the India branded business and improved performance in international and non-branded business,” it said.
In the first quarter of the current fiscal year, the total expenses of Tata Consumer Products Ltd (TCPL), the Tata Group’s FMCG arm, amounted to INR 3,304.36 crore, showing a notable increase of 11.68 per cent when compared to the expenses incurred during the same period in the previous year.
In the June quarter, TCPL’s total income reached INR 3,798.96 crore, exhibiting a notable increase of 12.99 per cent.
During the June quarter, TCPL’s overall branded business experienced a significant growth of 13.11 per cent, reaching INR 3,372.75 crore. This substantial improvement was noteworthy when compared to the corresponding quarter of the previous fiscal, where the overall branded business had amounted to INR 2,981.82 crore.
TCPL boasts a range of branded ventures encompassing tea, coffee, water, and an array of other enticing value-added enterprises.
The revenue from TCPL’s branded business in the Indian market reached INR 2,477.93 crore, reflecting a notable increase of 15.51 per cent.
Within the coffee segment, TCPL sustained its robust performance, achieving an impressive revenue growth of 21 per cent in the domestic market.
“For the quarter, the India foods business delivered 24 per cent revenue growth and 6 per cent volume growth,” the company said.
The revenue from TCPL’s non-branded business, encompassing plantation and extraction activities for tea and coffee, amounted to INR 377.05 crore in the June quarter, marking a notable growth of 7.2 per cent.
Tata Starbucks, a joint venture equally shared by Tata Consumer Products Ltd and Starbucks Corporation, also achieved an impressive “strong revenue growth” of 21 per cent during the June quarter.
According to TCPL’s Managing Director & CEO, Sunil D’Souza, the June quarter witnessed positive outcomes from the implemented interventions in the branded tea business, resulting in volume growth for the second consecutive quarter.
“We continue to maintain volume growth momentum in Salt, despite the pricing actions taken earlier to manage inflation,” he added.
The company continued to accelerate innovation across categories with a number of new launches to expand our total addressable market.
“Our growth businesses (Tata Sampann, Tata Soulfull and NourishCo ) continued their strong growth trajectory, they grew by 58 per cent this quarter and accounted for 20 per cent of the India branded business. Tata Starbucks continued to deliver a strong performance along with store expansion,” he said.
Shares of Tata Consumer Products Ltd on Wednesday settled at INR 874.10 on BSE, up 0.67 per cent from the previous close.
