Tata Consumer Products Q2FY22: Consolidated net profit up 4.6% at Rs 286 cr
Tata Consumer Products Ltd (TCPL) on Thursday reported a 4.62 per cent rise in consolidated net profit to Rs 285.80 crore for the September quarter, helped by growth in domestic beverages and food businesses.
Tata Consumer Products Ltd (TCPL) on Thursday reported a 4.62 per cent rise in consolidated net profit to Rs 285.80 crore for the September quarter, helped by growth in domestic beverages and food businesses.
The company had posted a net Profit of Rs 273.18 crore in the July-September period a year ago, TCPL, earlier known as Tata Global Beverages Ltd, said in a BSE filing.
Revenue from operations increased 9.05 per cent to Rs 3,033.12 crore as against Rs 2,781.34 crore in the corresponding period of the previous fiscal.
"It was a strong quarter under difficult but improving operating conditions. Overall, we grew in double digits and if we adjust for the fact that some business which we sold last year, are not there this year, the growth will be almost 11 per cent (on like to like basis)," TCPL Group CFO L Krishnakumar told PTI.
Total expenses of the Tata Group's FMCG arm were at Rs 2,708.91 crore, up 10.02 per cent from Rs 2,462.20 crore in Q2 FY21.
In the domestic business, TCPL continued its growth both in beverages and foods businesses, where it witnessed market share gains in tea and salt, Krishnakumar said.
"In terms of profitability, there was an increase in tea, which has impacted us in the earlier quarter. The impact is coming down and gross margins for the Indian business have improved in this quarter," he said.
In Q2 FY2021-22, TCPL's revenue from its 'India - Beverages' segment was up 14.25 per cent to Rs 1,265.86 crore as against Rs 1,107.96 crore earlier.
"For the quarter, the India Packaged Beverages business recorded a 10 per cent revenue growth, on an elevated base last year,? the company said in a post-earnings statement.
"In addition to recording market share gains in branded tea, we continued to strengthen our leadership position in e-commerce," it added.
Domestic foods business revenue climbed 22.73 per cent to Rs 712.22 crore as against Rs 580.31 crore.
"Tata Salt accelerated its market share gains and the premium salts portfolio continued its momentum in line with our premiumisation agenda," said TCPL.
Its spices and staples brand Tata Sampann recorded strong growth despite a high base last year.
TCPL's e-commerce sales logged 39 per cent Y-o-Y growth and constituted around 7 per cent of domestic sales in the July-September quarter.
However, revenue from international beverages segment declined of 3.85 per cent to Rs 781.27 crore as against Rs 812.54 crore.
"In international business, last year we sold our food service (in Australia) to our partner and that is not in the current year," said Krishnakumar, adding that on like-to-like basis, TCPL's international business growth was flat.
Tata Starbucks recorded revenue growth of 128 per cent in Q2 on a relatively low base of last year that was impacted by reduced mobility.
"Revenue grew 23 per cent when indexed to the same period in FY20," it said.
Tata Starbucks, a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation, opened 14 new stores during Q2 and entered one new city - Jaipur.
Shares of Tata Consumer Products Ltd on Friday settled at Rs 795.60 on BSE, down 2.44 per cent from the previous close.
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