Tata Consumer Products reported 82% jump in consolidated net profit to Rs 346 crore on 13% rise in revenue to Rs 2,714 crore in Q1 FY21 over Q1 FY20.
EBITDA increased by 37% to Rs 486 crore in the June quarter (from Rs 354 crore reported in the corresponding period last year) as a result of higher sales, gross margin improvement and rationalization of discretionary expenditure. EBITDA margin stood at 17.9% as on 30 June 2020 as against 14.8% as on 30 June 2019.
The company recorded an exceptional income of Rs 63 crore during the quarter. "Exceptional item for the current quarter represent gain of Rs 84 crore on conversion of a joint venture into a subsidiary and costs relating to the business integration of foods business Rs 21 crore", the company said.
Profit before tax in Q1 June 2020 stood at Rs 499 crore, up by 67% from Rs 299 crore in Q1 June 2019. The company wrote back taxes to the tune of Rs 110 crore in the first quarter.
In the branded business segment, India Beverages revenue was at Rs 1,000 crore (up 11% YoY), India Foods revenue was at Rs 589 (up 19% YoY) and International Beverages revenue was at Rs 867 crore (up 15% YoY) while non-branded business revenue rose 9% on a year-on-year (YoY) basis to Rs 264 during the quarter.
Tata Consumer said that the company along with its subsidiaries and affiliates continues to manufacture and supply essential food and beverage items in domestic and international markets in the current COVID-19 environment. The demand for the food and beverage products for in home consumption was buoyant, whereas segments in out of home consumption were adversely impacted.
Based on the trends observed, there is some tapering off of demand across geographies and significant hardening of commodity costs in India. Impact on future operations would to a large extent depend on how the pandemic develops.
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Sunil D'Souza, managing director & CEO of Tata Consumer Products, said "We have recorded good revenue and profit growth in Q1 due to increased demand in some categories, strong marketing campaigns and adopting new routes to reach the end consumer effectively. The integration of our foods and beverages businesses in India is progressing well and will unlock significant synergy benefits. In our international markets, we are investing behind our core brands and driving innovations in the tea and coffee segment. We are also strengthening key processes across the organization to scale up capability and build a future ready organization."
Tata Consumer Products, a subsidiary of the Tata Group, is a consumer products company. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.
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