Tata Consumer Products Q4 results: Net Profit falls 19% to Rs 217 crore

Tata Consumer Products reported a consolidated revenue from operations at Rs 3,927 crore for Q4FY24, up 8.5% Y-o-Y

Tata Consumer Products on Tuesday reported a consolidated net profit of Rs 217 crore in the quarter that ended on March 31, in financial year 2024 (Q4FY24). This was a 19.3 per cent fall from Rs 269 crore reported during the same period last year (Q4FY23).

The company reported consolidated revenue from operations at Rs 3,927 crore for Q4FY24, up 8.5 per cent compared to the same period last year at Rs 3,619 crore.

Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) for the quarter was reported at Rs 631 crore, up 22 per cent. For the entire year, Ebitda was up 24 per cent at Rs 2,323 crore.

The company reported a 7.4 per cent increase in total expenses at Rs 3,456 crore year-on-year (Y-o-Y) from Rs 3,217 crore.

Sequentially, the net profit fell 22 per cent from Rs 279 crore, reported in Q3. Revenue saw a marginal growth of 1.65 per cent from Rs 3,863 crore in the last quarter. Expenses went up 3.1 per cent quarter-on-quarter (Q-o-Q) from Rs 3,350 crore.

For the entire year of FY24, the company reported a 4.4 per cent drop in net profit at Rs 1,150 crore, compared to Rs 1,203 crore at the end of FY23.

Total revenue for FY24 went up 10.3 per cent at Rs 15,206 crore, compared to Rs 13,783 crore reported at the end of last year.

Total expenses at the end of FY24 were up nine per cent at Rs 13,429 crore Y-o-Y from Rs 12,318 crore.

"In FY24, premium and sub-premium segments outperformed the overall business and accounted for over two thirds of India Tea revenue. Gold, Premium and Tetley green franchises delivered strong results," the company said in an exchange filing.

In India, beverages grew three per cent Y-o-Y, in terms of flat tea volumes, while food reported a 20 per cent increase in revenue.

International business also recorded a seven per cent growth, "with significantly improved profitability," the company said. In the United Kingdom, Tata Consumer Products saw strong share gains across all our major retail partners, during the quarter, while in the United States, Tata Raasa got listed in 100 Stop & Shop stores during Q4.

Speaking on the results, Sunil D’Souza, managing director and chief executive officer of Tata Consumer Products, said, "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. Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong growth trajectory with a revenue growth of 40 per cent in FY24. Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities."

"Our recently announced acquisitions—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 transaction close. The transaction for Organic India closed on 16 April and we will focus on fast-tracking integration of the business to unlock value,” D’Souza added.

Tata Consumer Products Ltd recommended a dividend payment of Rs 7.75 per share.

Shares of Tata Consumer Products closed at Rs 1,173.25 on Tuesday ahead of the company's Q4 results.