Tata Consumer Products reported 26% rise in consolidated net profit to Rs 364 crore on an 8% increase in revenue from operations to Rs 3,475 crore in Q3 FY23 over Q3 FY22.
The revenue growth was driven by underlying growth of 8% in India Business, 2% in International Business and 22% in Non-Branded Business.
EBITDA fell 2% to Rs 458 crore in Q3 FY23 from Rs 468 crore in Q3 FY22. EBITDA margin was 13.2 % in Q3 FY23 as against 14.6% in Q3 FY22.
Profit before tax at Rs 482 crore is 25% higher as compared to corresponding quarter of the previous year reflecting strong growth in the domestic business partly offset by lower profits in the international business due to inflationary pressures and weakness in currency.
For the quarter, the India Packaged Beverages business recorded 9% revenue decline led by pricing corrections and demand slowdown and late onset of winter in our key markets of North and East. The company is witnessing demand recovery now.
In the December 2022, the India Foods business registered 29% revenue growth and 4% volume growth.
The company said that it continues to make consistent progress in our Sales & Distribution reach. We have increased direct distributor coverage in semi-urban areas and split routes in larger towns to drive assortment and increase focus on growth drivers.
Alternate channels continue to fuel growth. Modern Trade channel grew 17%, contributing to 14.8% of India business sales. The E-commerce channel grew 34%, contributing to 8.2% of India business sales. Approximately 11% of E-commerce revenue came from NPD (New Product Development) during the quarter.
For the quarter, the International Beverages business revenue grew 4%.
Tata Starbucks recorded strong revenue growth of 42% for the quarter, led by a revival in out of home consumption and strong store addition. The company opened 11 new stores during Q3, and entered 2 new cities. This brought the total number of stores to 311 across 38 cities.
Sunil D'Souza, managing director & CEO of Tata Consumer Products said: We delivered strong earnings growth this quarter while balancing revenue growth and margins in an extremely challenging macroeconomic environment.
While the branded tea business in India has been impacted by demand headwinds in some of our key markets, we are putting in place measures to address some of these challenges. We continued to maintain momentum on innovation with a number of new launches across our Beverages and Foods categories.
We have enhanced our R&D capability and infrastructure to better support our innovation agenda across categories. Going forward, we will continue to stay focused on driving consistent and profitable growth for the business.
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.
The scrip shed 0.46% to end at Rs 737.10 on the BSE.
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