Tata Consumer Products Q4 results: Net profit declines 19.3% to Rs 217 cr

Company's revenue from operation rose 8.5% at Rs 3,927 cr during the quarter compared to a year-ago period

Tata Consumer Products' net profit fell 19.3 per cent to Rs 217 crore on account of exceptional items partly offset by a one-time tax credit in overseas subsidiaries during the January-March quarter.

Its revenue was up 8.5 per cent at Rs 3,927 crore during the quarter, with strong performance seen in the India business, which grew 10 per cent in the quarter.

The company’s coffee business in India witnessed revenue growth of 45 per cent in the quarter ended March, while its foods business grew by 20 per cent, the company said in a statement.

Its international business revenue grew by 7 per cent, and 5 per cent in constant currency terms. In the United Kingdom, it witnessed strong share gains across all its major retail partners, during the quarter.

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“We delivered good top-line growth of 10 per cent in FY24, but importantly, an Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) growth of 24 per cent and significant expansion in Ebitda margin,” said Sunil D’Souza, managing director and chief executive officer at Tata Consumer Products.

“Our premiumisation agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio,” said D’Souza.

In the United Kingdom business, Tata Consumer Products saw its Ebitda margin touch historic highs led by restructuring initiatives taken during the year.

“In India, we solidified our sales and distribution infrastructure. Our total reach has expanded to four million outlets as of March 2024. We implemented split routes in all one million+ population towns and have seen significant improvement in assortment and growth. We are strengthening our Rurban (rural + urban) focus and are deepening our reach into rural areas. Alternate channels (modern trade and e-commerce) recorded significant momentum and continue to be strong growth drivers,” D’Souza added.

On the two recent acquisitions, D’Souza said that Capital Foods and Organic India will be significant value creators for the company, enabling expansion into high-growth, high-margin categories.

The front-end and back-end integration for Capital Foods was completed within 60 days of the transaction close. The transaction for Organic India closed on 16 April, and the company will focus on fast-tracking the integration of the business to unlock value.