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Business News/ Companies / Company Results/  Tata Consumer Q3 results: Net profit declines 17% to 301 crore
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Tata Consumer Q3 results: Net profit declines 17% to ₹301 crore

Tata Consumer Products Ltd on Wednesday reported a 17.26% decline in its consolidated net profit to ₹301.51 crore in the December quarter on account of lower contributions by associate and joint venture firms

Shares of Tata Consumer Products Ltd on Wednesday settled at ₹1,166.15 apiece on BSE, up 0.29% from the previous closePremium
Shares of Tata Consumer Products Ltd on Wednesday settled at 1,166.15 apiece on BSE, up 0.29% from the previous close

NEW DELHI : Tata Consumer Products Ltd (TCPL) on Wednesday reported a 17.26% decline in its consolidated net profit to 301.51 crore in the December quarter on account of lower contributions by associate and joint venture firms.

The consolidated profit before exceptional items and tax of the Tata Group FMCG arm was up 27.12% to 513.27 crore in the October-December period against 403.75 crore of the corresponding quarter a year ago.

The Tata Group FMCG arm had posted a consolidated net profit of 364.43 crore in the December quarter a year ago, according to a regulatory filing from the company.

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"Group Consolidated Net Profit at 302 crore is lower mainly on account of exceptional items and lower share of profits from Associate and Joint Ventures," said TCPL.

Its revenue from operations rose 9.47% to 3,803.92 crore during the quarter under review against 3,474.55 crore in the year-ago period.

The total expenses of the TCPL, earlier known as Tata Global Beverages Limited (TGBL), stood at 3,350.24 crore, up 7.38% in the December quarter.

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"For the quarter, revenue from operations increased by 9% (8% in constant currency) as compared to the corresponding quarter of the previous year, mainly driven by strong performance in India business, which grew 10%, 6% in International Business and 4% in Non-Branded Business," it said.

TCPL's revenue from Indian branded business increased 9.67% to 2,374.93 crore from 2,165.34 crore a year ago.

TCPL's India packaged beverages business delivered 4% revenue growth and coffee reported a revenue growth of 32% in the December quarter.

Similarly, its India Foods business grew 13%. TCPL's Tata Sampann portfolio recorded a robust growth of 40% for the quarter.

"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 the 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 its Managing Director and CEO Sunil D'Souza.

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Similarly, TCPL's revenue from the international market was 1,028.38 crore, up 10.58 per cent. It was 929.93 crore in the December quarter of FY23.

"In the UK, Teapigs and Good Earth continued to deliver strong growth. Joyfull, our recent millet-based muesli launch continued to gain momentum," said TCPL, adding that in the US, Good Earth and Teapigs continued to outpace category growth rates.

During the quarter, TCPL's revenue from its overall branded business increased 9.95 per cent to 3,403.31 crore. It was 3,095.27 crore in the corresponding quarter.

TCPL's branded businesses include tea, coffee, water and other various value-added businesses.

Its revenue from non-branded business, which includes plantation business of tea and coffee, was at 410.56 crore, up 4.92% in the December quarter of FY24.

TCPL's total income was 3,863.51 crore in the December quarter, up 9.65%.

Tata Starbucks -- a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation -- added 22 net new stores during the quarter and entered six new cities. This brought the total number of stores to 392 across 55 cities.

During the quarter, TCPL announced the acquisition of Capital Foods and Organic India having a combined enterprise value of 7,000 crore.

"We have already started the integration of Capital Foods. In line with our focus on execution, substantial progress on the front end has been achieved, and work will soon start on the back end, support functions, process and organisation structure. We aim to complete this within 100 days," it said.

Shares of Tata Consumer Products Ltd on Wednesday settled at 1,166.15 apiece on BSE, up 0.29% from the previous close.

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Published: 07 Feb 2024, 09:23 PM IST
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