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

FMCG major Tata Consumer Products Ltd. (TPCL) on Tuesday reported near-flat growth in its net profit for the quarter ended September 30, 2023. In Q2FY24, the firm’s profit after tax (PAT) stood at Rs 359.2 crore, up 1.1 per cent over the Rs 355-crore PAT in the corresponding quarter previous year.

TCPL’s operating revenue, however, surged 11 per cent year-on-year to Rs 3,734 crore - up from Rs 3,363 crore in the corresponding quarter of FY23. According to the company, its  top-line performance was based on its India business that grew by 11 per cent YoY, while its international business expanded 8 per cent.

Following the broad market trend, the Mumbai-headquartered company benefited from softening raw material prices. Its cost of materials consumed remained nearly flat - growing 1.6 per cent over last year - to Rs 1,349 crore, only to be offset by greater rate of surge in employee benefit expenses and purchase of stock in trade. Consolidated earnings before interest, tax, depreciation & amortisation (EBITDA) for the quarter stood at Rs 569 crore, growing 30 per cent YoY.

According to Sunil D’Souza, Managing Director & CEO of TCPL, the company’s India tea business continued to benefit from its earlier interventions, resulting in a third consecutive quarter of volume led growth. “In our salt business, we have seen consistent revenue growth and premiumisation at play. We continued our strong momentum on innovation with a number of new product launches across categories, further expanding our total addressable market. Our growth businesses (Tata Sampann, Tata Soulfull and NourishCo and Tata Smartfoodz) continued their strong momentum and have increased their contribution significantly in line with our portfolio transformation ambition. Tata Starbucks also delivered strong overall performance while continuing its expansion agenda,” he said.

TCPL’s packaged beverages business in India grew 5 per cent YoY and 3 per cent by volume, while Tata Sampann portfolio recorded a robust growth of 47 per cent YoY. India foods business delivered 16 per cent revenue growth and 6 per cent volume growth, it said in a statement. Tata Starbucks recorded revenue growth of 14 per cent for the quarter on an annual basis. TCPL unveiled 22 net new stores during the quarter and entered two new cities. This brought the total number of stores to 370 across 49 cities.

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