FMCG major Tata Consumer Products on Friday reported a marginal increase of 0.9 per cent in its consolidated net profit to Rs 367.21 crore in the second quarter ended September 2024, mainly impacted by the tea cost in the Indian market.
The company had posted a consolidated net profit of Rs 363.92 crore a year ago, according to a regulatory filing from Tata Consumer Products Ltd (TCPL).
Its revenue from operations rose 12.87 per cent to Rs 4,214.45 crore during the quarter under review. It was Rs 3,733.78 crore in the year-ago period.
"On the margin, I think the biggest impact has been on tea costs. We have seen a significant increase in raw tea prices across both North India and South India," TCPL Group Chief Financial Officer Ashish Goenka told PTI in a post-result interaction.
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Profit before exceptional items and tax of Tata Group FMCG arm declined 16.06 per cent to Rs 424.24 crore in the September quarter. This is "primarily on account of finance costs and amortisation expenses relating to the acquisitions, said TCPL in its earnings statement.
"Group net profit before exceptional items at Rs 388 crore is higher by 3 per cent," it added.
The total expenses of TCPL, earlier known as Tata Global Beverages Limited (TGBL), rose 15.61 per cent to Rs 3,836.18 crore in the September quarter.
"We delivered a topline growth of 13 per cent in Q2 FY25, with an EBITDA growth of 11 per cent. During the quarter, we recorded continued growth & market share gain in the India salt business and strong growth in Tata Sampann & Tata Soulful. Our India tea business was impacted by subdued category trends," said TCPL Managing Director and CEO Sunil D’Souza.
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In the quarter, TCPL's overall branded business increased 12.44 per cent to Rs 3771.2 crore. It was Rs 3,353.81 crore in the corresponding quarter last fiscal.
Its branded businesses include tea, coffee, water and other various value-added businesses.
The revenue from the branded business in India grew 10.44 per cent to Rs 2,655.19 crore.
In the domestic market, India Beverages' business revenue rose 3 per cent impacted by the subdued demand environment. Coffee continued its strong trajectory with a revenue growth of 29 per cent for the quarter.
TCPL's India Foods business revenue rose 28 per cent, while the value-added salt portfolio and Tata Sampann surged 26 per cent.
While its newly acquired businesses Capital Foods and Organic India reported a sequential growth of 25 per cent and 45 per cent, respectively.
"Channels of the future continued to fuel our growth and innovation agenda. Ecommerce channel grew 51 per cent and Modern Trade recorded 17 per cent growth in the quarter," it said.
TCPL's international branded business increased 17.5 per cent to Rs 1,116 crore. Moreover, international business profitability improved "significantly" led by a strong topline in the UK business and structural interventions made earlier.
Its revenue from non-branded business surged 19.05 per cent to Rs 462.28 crore during the quarter. This segment includes TCPL's plantation and extraction business of tea and coffee.
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TCPL's total income, which includes other income, rose 17.57 per cent to Rs 4,260.42 crore in the September quarter.
Tata Starbucks -- a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation -- added 19 net new stores during the quarter and entered 5 new cities. This brings the total number of stores to 457 across 70 cities.
With this, Tata Starbucks is now the largest organised cafe operator in India, it added.
Shares of Tata Consumer Products Ltd on Friday settled at Rs 1,097.65 on BSE, up 0.66 per cent from the previous close.
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