Tata Consumer Products Q3 Results: Net profit falls 21% to Rs 279 crore, misses analysts' estimates

Tata Consumer Products on Wednesday reported a consolidated net profit of Rs 278.9 crore for the quarter ended December 31, 2023, marking a year-on-year fall of 20.7 per cent. 

The Tata group company,  whose popular brands include Tata Tea, Tetley, Tata Salt, Eight O'Clock Coffee and Himalayan Water, registered revenue of Rs 3,803.9 crore for the fiscal third quarter, as against Rs 3,474.6 crore for the corresponding period a year ago, according to a regulatory filing.

Zee Business analysts had estimated Tata Consumer Products' quarterly net profit at Rs 347 crore and revenue at Rs 3,831 crore. 

Tata Consumer Products said its earnings before interest, taxes, amortisation and depreciation (EBITDA) for the three-month period expanded 26 per cent. Zee Business analysts had pegged EBITDA growth at the Tata group company at 19 per cent for the fiscal third quarter. 

The Tata group consumer products company registered revenue growth of 4.0 per cent in its India packaged beverages unit and 11 per cent in its international business. 

Tata Consumer Products said it continued to retain market leadership in tea in the e-commerce channel.

"Our India tea business continued to benefit from our earlier interventions, yielding positive results resulting in a fourth consecutive quarter of volume-led growth. We continued to see volume-led growth in salt and recorded highest-ever quarterly volume market share in salt. In both tea and salt, we saw premiumisation at play with the premium portfolio in tea and the value-added salt portfolio recording good growth," said Sunil D’Souza, Managing Director and CEO, Tata Consumer Products.  

"Our growth businesses (Tata Sampann, Tata Soulfull, NourishCo and Tata SmartFoodz) continued their strong momentum and have steadily increased their contribution. Tata Starbucks made consistent progress in its expansion agenda expanding its footprint to 55 cities. Our Sales & Distribution buildout is progressing well, our total reach has expanded to 3.9 million outlets as of December ’23," the CEO added. 

Tata Consumer Products (TATACONSUM) shares ended higher by Rs 7.3, or 0.6 per cent, at Rs 1,170 apiece on BSE ahead of the earnings announcement. 

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