Tata Consumer Q4: Net profit up 21% to ₹289 cr, dividend declared

FMCG Tata Consumers on Tuesday reported a rise of 21 per cent in consolidated net profit to ₹289.6 crore in the quarter ended 31 March, 2023. This is against ₹239 crore in the corresponding quarter last year.

The consolidated revenue from operations during the fourth quarter rose by 14 per cent to ₹3,619 crore, as compared to ₹3,175 crore in the year-ago period.

The board has recommended a final dividend of ₹8.45 per equity share of ₹1 each (845%), for the financial year 2022-23, said Tata Consumer.

The revenue growth was mainly driven by underlying growth of 15% in India business, 6% in international business and 9% in non-branded business.

For the quarter, the India packaged beverages business delivered 1% revenue growth and 3% volume growth, recording a sequential recovery. The India foods business delivered 26% revenue growth and 8% volume growth, bringing to close a strong year for the foods business when revenue grew 26%.

Coffee continued its strong performance with a revenue growth of 31% YoY.

In FY23, the modern trade channel grew 21%, contributing to 14% of India business sales, said Tata Consumers. The e-commerce channel grew 32%, contributing to 9% of India business sales. Nearly, 10% of E-commerce revenue came from NPD (New Product Development) during the year.

Tata Starbucks recorded strong revenue growth of 48% for the quarter, bringing FY23 growth to 71%, albeit on a base that was impacted by the pandemic.

Tata Starbucks has opened 71 new stores during the year, the highest ever annual store addition and entered 15 new cities-. The total number of stores stands at 333 across 41 cities.

Tata Sampann continued its strong trajectory in Q4, recording double digit revenue growth for the quarter and also for the year, it added. The growth was led by broad based performance across categories.

Tata Consumer said NourishCo had a landmark FY23, hitting ₹621 crore in net revenue, up 80 percent led by broad based performance across products and geographies.

“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," said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.

On Tuesday, the company's scrip ended 0.25 per cent up at ₹734.30 on BSE.