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Tata Consumer Q2 results: Firm reports flat net profit, revenue rises 11%

11 months ago
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Tata Consumer

Tata Consumer Products Ltd. (TPCL) reported near-flat growth in net profit for the quarter ended September 30, 2023 on Tuesday. The company’s profit after tax (PAT) was Rs 359.2 crore in Q2FY24, up 1.1% from Rs 355 crore in the previous year’s equivalent period.

TCPL’s operating revenue, on the other hand, increased 11% year on year to Rs 3,734 crore, up from Rs 3,363 crore in the same quarter of FY23. According to the corporation, its top-line growth was driven by its India business, which increased by 11% year on year, while its foreign business increased by 8%.

Following the general market trend, the Mumbai-based company profited from lower raw material prices. Its cost of materials consumed remained practically steady, at 1.6% year on year to Rs 1,349 crore, only to be offset by a higher rate of increase in employee benefit expenses and stock in trade. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter were Rs 569 crore, up 30% year on year.

Tata Consumer

According to Sunil D’Souza, Managing Director and CEO of TCPL, the company’s India tea business benefited from earlier initiatives, resulting in a third consecutive quarter of volume-led growth. “We have seen consistent revenue growth and premiumisation in our salt business.” We maintained our strong innovation momentum with a number of new product releases across categories, increasing our total addressable market. Our growing businesses (Tata Sampann, Tata Soulfull and NourishCo, and Tata Smartfoodz) have maintained their excellent pace and greatly grown their contribution in line with our portfolio transformation aim. “Tata Starbucks delivered a strong overall performance while pursuing its expansion strategy,” he added.

TCPL’s packaged beverages business in India rose 5% year on year and 3% by volume, while Tata Sampann’s portfolio expanded 47% year on year. According to a release, the India foods business grew by 16% in sales and 6% in volume. On an annual basis, Tata Starbucks’ revenue increased by 14% for the quarter. During the quarter, TCPL opened 22 net new stores and expanded into two new cities. This brings the overall number of stores in 49 cities to 370.