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Tata Consumer Q2 profit rises 36% to Rs 355 crore, margins hit by international biz

Consolidated revenue came in at Rs 3,363 for the quarter, an increase of 11 percent

October 20, 2022 / 09:20 PM IST
Tata Consumer Products: Tata Consumer Products Q2 profit jumps 36% YoY to Rs 389 crore boosted by income from sale of land. Revenue grows 11%. The Tata Group company has recorded a 36% year-on-year growth in consolidated net profit at Rs 389 crore led by exceptional income related to sale of land. Revenue from operations grew by 11% YoY to Rs 3,363 crore (and in constant currency terms, the growth was 10%), mainly driven by underlying growth of 9% in India business, 6% in international business and 30% in non-branded business. Consolidated EBITDA for the quarter at Rs 438 crore grew 4% YoY.

Tata Consumer Products: Tata Consumer Products Q2 profit jumps 36% YoY to Rs 389 crore boosted by income from sale of land. Revenue grows 11%. The Tata Group company has recorded a 36% year-on-year growth in consolidated net profit at Rs 389 crore led by exceptional income related to sale of land. Revenue from operations grew by 11% YoY to Rs 3,363 crore (and in constant currency terms, the growth was 10%), mainly driven by underlying growth of 9% in India business, 6% in international business and 30% in non-branded business. Consolidated EBITDA for the quarter at Rs 438 crore grew 4% YoY.

Tata Consumer Products on October 20 reported a 36 percent year-on-year (YoY) growth in net profit at Rs 355 crore for the quarter ended September. In the corresponding quarter last fiscal, net profit stood at Rs 261 crore.

Sequentially, profit rose 28.4 percent. Group's consolidated net profit was higher at Rs 389 crore aided by exceptional income of Rs 147 crore from sale of land, Tata Consumer said in an exchange filing.

Consolidated revenue came in at Rs 3,363 for the quarter, an increase of 11 percent over the same period last year. Sequentially, revenue rose 1.1 percent from Rs 3,326 crore.

“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," Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA for the quarter grew 4 percent YoY to Rs 438 crore. EBITDA margin however declined 100 basis points YoY to 13 percent, impacted by international business profitability.

"While unprecedented inflation and adverse currency movements in our international business have weighed on our margin this quarter, we will be driving structural cost-saving initiatives to improve the trajectory going forward," D’Souza added.

India Business

For the quarter, the India Packaged Beverages business recorded a 7 percent revenue decline with a 1 percent volume decline due to pricing corrections and overall softness in the category. Meanwhile, India Foods business registered 29 percent revenue growth, with volumes remaining flat.

Tata Sampann, NourishCo, and Tata Soulfull have delivered significant growth and are expanding their portfolio and reach, the company said. Coffee recorded revenue growth of 39 percent during the quarter.

Meanwhile, the salt portfolio's revenue jumped 27 percent, despite a high base. And, Tata Sampann's portfolio delivered strong growth of 37 percent, led by broad-based performance across pulses, poha and spices.

During the quarter, NourishCo sustained its momentum with a 63 percent revenue growth, the company said in an exchange filing. The FMCG major also re-launched its Ready-To-Eat portfolio under the brand name Tata Sampann Yumside.

Tata Starbucks

Led by normalised store operations and a revival in out-of-home consumption, Starbucks recorded a revenue increase of 57 percent for the quarter.

The Tata firm also opened 25 new stores, the highest ever number of quarterly store openings in its history and entered 5 new cities. The total number of stores is now 300 across 36 cities, informed the company.

International Business

Tata Consumer Products' international business revenue was up 7 percent for the quarter (+6 percent in constant currency terms) at Rs 839 crore. International Business EBITDA fell 41 percent, owing to input cost inflation, currency weakness and lag in pricing.

The US Coffee business which includes the Eight O'Clock brand saw a volume decline of 2 percent while the International Tea business which includes brands like Tetley, Teapigs and GoodEarth saw a volume decline of 5 percent.

Moneycontrol News
first published: Oct 20, 2022 04:36 pm

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