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Tata Consumer Products Q3FY25 results: Net profit remains flat at Rs 279 cr

Tata Consumer, known for its 'Tetley' tea and its namesake brand of salt, was hurt by rising costs of domestic tea

Tata consumer products, Tata tea, tata group

Revenue from the international business rose 8 per cent and profit from the segment grew 53 per cent year-on-year.

Reuters

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India's Tata Consumer Products reported a smaller-than-expected third-quarter profit on Thursday, hurt by elevated domestic tea prices that squeezed the company's margins.

The Tata group-owned company posted a consolidated net profit of Rs 279 crore ($32.2 million) for the October-December quarter, which was flat year-on-year. Analysts, on average, had expected a profit of Rs 358 crore, per data compiled by LSEG.

Tata Consumer, known for its 'Tetley' tea and its namesake brand of salt, was hurt by rising costs of domestic tea, the company said, as the commodity contributes nearly 60 per cent to overall revenue.

Tea prices in India have been rising due to adverse weather conditions, higher production costs and supply chain disruptions, according to analysts.

 

Prices of tea in the northern parts of India increased 21 per cent in the third quarter, while those in the southern parts jumped 38 per cent, the company said, adding that this lifted raw materials costs by 34 per cent.

Its Indian business, which sells packaged products including pulses and spices and accounts for 56 per cent of profit, reported a 43 per cent fall in profit during the quarter due to the surge in tea prices.

As a result, Tata's margins on consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) contracted by 210 basis points year-on-year in the third quarter.

However, the company's international businesses, which contributes nearly 30 per cent to revenue, aided a 17 per cent growth in overall revenue from operations to Rs 4,443 crore, beating analysts' estimate of Rs 4,398 crore.

Revenue from the international business rose 8 per cent and profit from the segment grew 53 per cent year-on-year.  CEO Sunil D'Souza's gets five-year extension

Tata Consumer Products Ltd (TCPL) on Thursday said its board has approved extending the tenure of Managing Director & CEO Sunil D'Souza for the next five years.
 
"Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company, at their meeting held today i.e. Thursday, January 30, 2025, have approved the re-appointment of Sunil D'Souza as the Managing Director & CEO of the Company for a further period of 5 years," TCPL said.
 
His new term will be effective from April 4, 2025, to April 3, 2030, and would be subject to the approval of the shareholders.
 
D'Souza has been serving as the Managing Director & Chief Executive Officer of Tata Consumer Products since April 2020.
 
Prior to this, he held the position of Managing Director at Whirlpool India for over four years and also worked with PepsiCo for almost 15 years.

 

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First Published: Jan 30 2025 | 10:22 PM IST

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