Higher costs dent Tata Consumer's performance in September quarter

Cost pressures to sustain as company is committed to increasing advertising spends

A sharp rise in advertising and promotional expenses weighed on the operating performance of Tata Consumer Products in the September quarter. Operating profit margins (OPM) for the maker of Tata Tea and Tata Coffee slipped 50 basis points to 13.9 per cent as marketing expenses were up 27 per cent over the year ago quarter. On a standalone basis, advertising costs were up 47 per cent. The dip in OPM came in despite the rise in gross margins by 194 basis points y-o-y; this was aided by tapering in prices of tea and price hikes. 

The company indicated the marketing