The FMCG major's group consolidated net profit surged 36.26% to Rs 389.43 crore on 10.88% rise in revenue from operations to Rs 3,363.05 crore in Q2 FY23 over Q2 FY22.
The increase in the group net profit was mainly aided by the revenue growth in both branded and non-branded business, partly offset by margin decline due to inflation and weakness of GBP for International markets and higher exceptional income on account of sale of land in Tata Coffee.
The company's revenue from India business stood at Rs 2,159.95 crore (up 9.19% YoY), revenue from International business was at Rs 838.87crore (up 7.37% YoY) and revenue from non-branded business stood at Rs 371.80 crore (up 32.83% YoY) in Q2 FY23.
Profit before exceptional items stood at Rs 370.46 crore in Q1 FY23, up 1.82% from Rs 363.83 crore reported in the corresponding quarter previous year. The rise in PBT before exceptional items reflects the impact of inflationary pressures, weakness in currency and some lag in pricing in the International business.
Exceptional items for the current quarter mainly represent profit on sale of land of Rs 147 crore and costs relating to the business restructure & reorganisation of Rs 35 crore and cost relating to scheme of arrangement of Rs 1 crore. Exceptional item for the corresponding quarter of the previous year represents costs relating to the business restructure and redundancy of Rs 16 crore.
EBITDA improved by 4% to Rs 438 crore in Q2 FY23 from Rs 420 crore posted in Q2 FY22. EBITDA margin stood at 13% in Q2 FY23 as compared to 13.9% recorded in the same period a year ago.
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For the quarter, the India Packaged Beverages business recorded 7% revenue decline due to pricing corrections and overall softness in the category. The company continued to record volume market share gains in branded tea. Coffee continued its strong performance with a revenue growth of 39% during the quarter.
For the quarter, the India Foods business registered 29% revenue growth despite an elevated base that saw 23% growth in the same period last year. The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in Q2 last year. The salt portfolio also continued to record market share gains. The Tata Sampann portfolio recorded strong double-digit growth led by broad based performance across pulses, poha and spices.
For the quarter, the International Beverages business revenue grew 7%. In the UK, TCPL became the third largest branded tea company by market share, displacing Twinnings. Eight O' Clock (EOC) coffee in the USA recorded share gains, with EOC K cups growing ahead of the category. The newly launched Tetley Sweet Tea Cold Brew strengthened its presence in the specialty tea segment in the USA. Tetley Irish Breakfast tea continued to do well led by distribution gains and ongoing promotion activity.
Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by normalized store operations and a revival in out of home consumption. Opened 25 new stores during Q2, the highest ever number of quarterly store openings in its history and entered 5 new cities. This brought the total number of stores to 300 across 36 cities.
Sunil D'Souza, Managing Director & CEO of Tata Consumer Products said, We delivered another quarter of double digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets.
While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position. We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out of home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter, he stated.
D'Souza further added, While unprecedented inflation & adverse currency movements in our International business have weighed on our margin this quarter, we will be driving structural costsaving initiatives to improve the trajectory going forward. Our transformation agenda to become a leading FMCG company continues to be on track. We are making consistent progress in expanding our reach across channels, strengthening our innovation capabilities, and embedding digital transformation across the organization. We will continue to stay focused on growth while fuelling our new businesses.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world.
Shares of Tata Consumer Products were up 0.77% to settles at Rs 770.25 on the BSE.
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