Tata Consumer Q2 Results: Cons PAT jumps 8% YoY to Rs 364 crore, beats estimates

Tata Consumer Products on Friday reported an 8% jump in its net profit for the quarter ended September 2024 to Rs 364 crore (attributable to shareholders) versus Rs 338 crore posted in the year-ago period.

The profit after tax (PAT) was above ET Now poll estimates of Rs 314 crore.

The revenue from operations in the reported quarter stood at Rs 4,214 crore, up 13% over Rs 3,734 crore posted by the company in the corresponding quarter of the previous financial year.

The company's India beverages segment grew 3%, with tea volumes declining 4% YoY while the India Foods revenue grew 28% (+9% organic), the company filing said. Volume growth was 1% for the reported quarter.

The international business recorded 7% revenue growth (5% in constant currency) with profitability improving by over 53% YoY.

Tata Consumer's revenue was below ET Now poll estimates of Rs 4,340 crore.

Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 11% with the margins contracting 30 bps to 14.9%. This was primarily led by higher input costs for the India tea business.

The merger of its wholly-owned subsidiaries in India viz. NourishCo, Tata Soulfull, and Tata Smart Foodz was successfully completed during the quarter in line with the company's plans to simplify, synergise and scale the business.

Meanwhile, Tata Starbucks is now the largest café operator in India with 457 stores across 70 cities, the company filing claimed.

Profit before exceptional items and tax at Rs 424 crore is lower by 16%, primarily on account of finance costs and amortisation expenses relating to the acquisitions. The short-term debt taken for the acquisitions has now been paid off. The group net profit before exceptional items at Rs 388 crores is higher by 3%.

Commenting on the earnings, Managing Director & CEO Sunil D’Souza said the company recorded continued growth and market share gain in the India salt business during the quarter in Tata Sampann & Tata Soulful. The India tea business was impacted by subdued category trends, he added.

"With the integration completed for both Capital Foods and Organic India, we are starting to see strong synergy benefits and both businesses witnessed strong quarter-on-quarter growth. We delivered a strong performance in the International Business along with significant margin expansion led by strong revenue growth in the UK and earlier structural interventions," D’Souza said.

"In India, we continued to strengthen our Sales & Distribution infrastructure with the rollout of a new Distributor Management system, centralised planning & dispatch capability and an auto replenishment system. Modern trade and e-commerce continue to be strong contributors to our growth. In addition, we are incubating new channels (Food Services/HoReCa and Pharmacies) to fuel growth," the MD said.