Tata Consumer Products Ltd, the parent company of Tetley tea and Ching’s Secret noodles brands, recorded a net profit of INR 217 crore for the fiscal fourth quarter, marking a 19 percent decrease from the year-ago period.
The company’s revenue increased by 8.5 percent to INR 3,927 crore in the three months ended March 31, as stated in an exchange filing on April 23.
While revenue aligned closely with expectations, profit fell short of estimates. An average of six brokerages polled anticipated a year-on-year revenue growth of 4.8 percent to INR 3,989 crore. The bottom line was projected to increase by 13.4 percent to INR 329 crore.
The EBITDA margin stood at 16 percent, marking a 190 basis points increase.
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“Our sales and distribution network in India has been strengthened, and as of March 24, we had 4 million outlets worldwide. In every town with a population of one million or more, we divided the routes, and the assortment and growth significantly improved. We are expanding into more rural areas and tightening our focus on Rurban areas. Alternative channels, such as contemporary trade and e-commerce, have seen tremendous growth and are still very powerful growth drivers,” remarked Tata Consumer Products’ CEO and managing director, Sunil D’Souza.
The India Packaged Beverages division achieved a 2 percent increase in revenue. Maintaining its market leadership in tea within the E-commerce channel, the company sustained its position. Additionally, coffee demonstrated robust performance, achieving a remarkable 45 percent revenue growth for the quarter.
During the quarter, Nourishco (RTD business) experienced a revenue surge of 13 percent, contributing to a robust FY24 growth of 33 percent. The company bolstered its sales and distribution infrastructure, extending its total reach to 4 million outlets as of March 2024. Moreover, the company expanded its reach by adding over 1300 distributors in FY24, predominantly targeting Rurban markets.
Tata Consumer Products Limited concluded the day at INR 1173.25 on BSE, marking a 0.07 percent increase from the previous day’s closing price.
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