TCPL Q3 Profit Down 17% to Rs 301 Cr, Revenue Up 9.47%

New Delhi, Feb 7 (PTI) Tata Consumer Products Ltd (TCPL) on Wednesday reported a 17.26 per cent decline in its consolidated net profit to Rs 301.51 crore in the December quarter on account of lower contribution by associate and joint venture firms.

The consolidated profit before exceptional items and tax of the Tata Group FMCG arm was up 27.12 per cent to Rs 513.27 crore in the October-December period against Rs 403.75 crore of the corresponding quarter a year ago.

The Tata Group FMCG arm had posted a consolidated net profit of Rs 364.43 crore in the December quarter a year ago, according to a regulatory filing from the company.

"Group Consolidated Net Profit at Rs 302 crore is lower mainly on account of exceptional items and lower share of profits from Associate and Joint Ventures," said TCPL.

Its revenue from operations rose 9.47 per cent to Rs 3,803.92 crore during the quarter under review against Rs 3,474.55 crore in the year-ago period.

The total expenses of the TCPL, earlier known as Tata Global Beverages Limited (TGBL), stood at Rs 3,350.24 crore, up 7.38 per cent in the December quarter.

"For the quarter, revenue from operations increased by 9 per cent (8 per cent in constant currency) as compared to the corresponding quarter of the previous year, mainly driven by strong performance in India business, which grew 10 per cent, 6 per cent in International Business and 4 per cent in Non-Branded Business," it said.

TCPL's revenue from Indian branded business increased 9.67 per cent to Rs 2,374.93 crore from Rs 2,165.34 crore a year ago.

TCPL's India packaged beverages business delivered 4 per cent revenue growth and coffee reported a revenue growth of 32 per cent in the December quarter.

Similarly, its India Foods business grew 13 per cent. TCPL's Tata Sampann portfolio recorded a robust growth of 40 per cent for the quarter.

"Our India tea business continued to benefit from our earlier interventions, yielding positive results resulting in a fourth consecutive quarter of volume-led growth. We continued to see volume-led growth in salt and recorded the highest-ever quarterly volume market share in salt.

"In both tea and salt, we saw premiumisation at play with the premium portfolio in tea and the value-added salt portfolio recording good growth," said its Managing Director and CEO Sunil D'Souza.

Similarly, TCPL's revenue from the international market was Rs 1,028.38 crore, up 10.58 per cent. It was Rs 929.93 crore in the December quarter of FY23.

"In the UK, Teapigs and Good Earth continued to deliver strong growth. Joyfull, our recent millet-based muesli launch continued to gain momentum," said TCPL, adding that in the US, Good Earth and Teapigs continued to outpace category growth rates.

During the quarter, TCPL's revenue from its overall branded business increased 9.95 per cent to Rs 3,403.31 crore. It was Rs 3,095.27 crore in the corresponding quarter.

TCPL's branded businesses include tea, coffee, water and other various value-added businesses.

Its revenue from non-branded business, which includes plantation business of tea and coffee, was at Rs 410.56 crore, up 4.92 per cent in the December quarter of FY24.

TCPL's total income was Rs 3,863.51 crore in the December quarter, up 9.65 per cent.

Tata Starbucks -- a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation -- added 22 net new stores during the quarter and entered six new cities. This brought the total number of stores to 392 across 55 cities.

During the quarter, TCPL announced the acquisition of Capital Foods and Organic India having a combined enterprise value of Rs 7,000 crore.

"We have already started the integration of Capital Foods. In line with our focus on execution, substantial progress on the front end has been achieved, and work will soon start on the back end, support functions, process and organisation structure. We aim to complete this within 100 days," it said.

Shares of Tata Consumer Products Ltd on Wednesday settled at Rs 1,166.15 apiece on BSE, up 0.29 per cent from the previous close.