Tata Consumer Products declares final dividend of 845%, scrip ended on a green note

Tata Consumer Products is a large cap company that recorded a market cap of ₹68,231 Cr during its today's closing session. The company's brands are present in more than 40 countries, and some of its products include Tata Tea, Tetley, Tata Salt, Eight O'Clock Coffee, Himalayan Water, and new brands including Tata Sampann, Tata Soulfull, Tata Gluco Plus, and Tata Water Plus.

“The Board has recommended a final dividend of Rs. 8.45/- per equity share of Re. 1 each (845%), for the financial year 2022-23. The Dividend, if approved by the members at the ensuing Annual General Meeting, will be paid/dispatched (subject to deduction of tax at source) after the AGM and within 30 days of its declaration. The Register of Members and the Share Transfer Books of the Company will be closed from Saturday, May 20, 2023, to Friday, May 26, 2023, (both days inclusive) for the purpose of this AGM and for determining entitlement of members to final dividend for the financial year ended March 31, 2023,” said Tata Consumer Products in a stock exchange filing today.

The company said its consolidated revenue from Operations for the quarter ended March 2023 reached ₹3,619 Cr up 14%, and for the year FY23, the revenue stood at ₹13,783 Cr, up 11%. Its consolidated EBITDA for the quarter stood at ₹518 Cr, grew by 13% and for the year FY23 EBITDA was at ₹1,874 Cr, up by 7%. Tata Consumer Products said its group net profit for Q4FY23 was at ₹290 Cr, up by 21%, for the year FY23 it surged 30% and was at ₹1,320 Cr.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “We delivered strong topline growth of 11% while balancing margins in an extremely volatile macro environment this fiscal. Importantly, we delivered a strong earnings growth of 28%.”

“During the quarter, we saw early signs of green shoots in our branded tea business, with the interventions we put in place starting to yield positive results. In our other core business of salt, we continued to execute strongly and have gained market share despite pricing actions taken to mitigate inflation. Our innovation across categories has picked up pace significantly with the number of new product launches in FY23 being almost 2X of FY22. Our growth businesses (Tata Sampann, Tata Soulfull, and NourishCo) continued their strong growth trajectory and have increased their salience significantly over the past couple of years, accounting for 15% of India business this fiscal. Tata Starbucks recorded a strong performance, hitting a 4-digit topline along with achieving its highest-ever number of annual store additions,” said Sunil D’Souza.

“We reached new milestones in our Sales & Distribution expansion and are on track to achieving a total reach of 4 mn outlets by this year as per our earlier guidance. We are embedding digital transformation across the business and will be using this to drive decision-making in areas such as new product development, procurement, and revenue growth management. Our transformation journey to becoming a leading FMCG company is on track and we will continue to stay focused on driving profitable growth along with building futureready capabilities,” he further added.

The shares of Tata Consumer Products closed today on the NSE at ₹734.95 apiece, up by 0.33% from the previous close of ₹732.55.