On a consolidated basis, Tata Consumer Products reported a 29% rise in net profit to Rs 237 crore on 23% increase in revenue from operations to Rs 3,070 crore in Q3 FY21 over Q3 FY20.
The growth in revenue was driven by strong growth across India and International business. Sequential recovery continues for our out-of-home India businesses i.e. NourishCo & Tata Starbucks.
On the segmental front, total branded business revenue rose by 26% to Rs 2,832 crore while the non branded business revenue increased by 4% to Rs 246 crore in Q3 December 2020 over Q3 December 2019. In the Branded business, the growth was led by India Beverages (up 46% YoY), followed by India Foods (up 19% YoY) and International Beverages (up 9% YoY).
Profit before tax before exceptional items in Q3 December 2020 stood at Rs 298 crore, up by 13% from Rs 265 crore in Q3 December 2019. The company wrote back taxes worth Rs 55 crore in the third quarter.
EBITDA for the quarter is up 12% year-on-year (YoY) to Rs 365 crore, primarily driven by strong profit delivery in International & India Foods business which more than offset the adverse impact of tea inflation in India beverages business. EBITDA margin was at 11.9% as on 31 December 2020, lower than 13.1% as on 31 December 2019.
With respect to business outlook, the company said that tea inflation in India remains a challenge in the near term. There is a need to navigate margin pressure while staying focused on volume & share growth. With distribution expansion in progress and acceleration in new product launches, growth momentum in India Foods, Beverages & RTD business is expected to continue. The addition of Soulfull would give us an opportunity to expand our product portfolio & participate across multiple consumption occasions. International business is expected to normalise once the vaccination programme is completed. We will continue with our transformation journey that will help us deliver on our strategic priorities.
Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, said: "We delivered strong volume and revenue growth during the quarter driven by broad based performance across our major markets and categories. Despite unprecedented inflation in our tea costs in the India business, we managed to deliver strong growth in earnings by leveraging all lines of the P&L. The integration of our food and beverage business in India is progressing ahead of plan and several initiatives on end to end digitization are underway. We have completed the redesign of our S&D system with significantly higher feet on street, increased focus on modern trade and e commerce, 100% channel partner automation and expanded outlet reach.
We have stepped up the pace of innovation with new launches across markets and activated new engines of growth. We have also stepped up investment behind our brands to further strengthen their reach and relevance to consumers. Overall, despite a challenging external environment this year, we have delivered industry leading growth while putting in place building blocks for the future."
Separately, Tata Consumer Products (TCPL) said that it has signed definitive agreements to acquire 100% equity shares of Kottaram Agro Foods (KAF), owner of the brand 'Soulfull'. The acquisition is being done for a cash consideration of Rs 155.80 crore. In addition, the promoters are entitled to a contingent consideration, which is payable upon the business achieving certain operational and financial milestones over a period of 5 years. The company expects the transaction to be completed in the fourth quarter of FY 2021. This move is consistent with TCPL's strategic intent to expand its product portfolio, and participate in multiple consumption occasions.
Launched in 2013, the brand 'SoulfulF' operates in the Health and Wellness focused food segment with a portfolio of milletbased products for kids and adults. The brand currently has a strong presence in select urban markets in South, West, and North India. With rich expertise in ancient millets like ragi, the brand has an innovative portfolio of products such as cereals, healthy snacks, muesli, and plant-based protein drinks.
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, salt, pulses, spices, and ready-to-cook offerings.
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