Tata Consumer Products' Q3 net profit jumps 22.2% to Rs 290 crore

Tata Consumer Products Ltd (TCPL) on Wednesday reported a 22.19 per cent jump in its consolidated net profit to Rs 290.07 crore for the third quarter ended December 31, 2021, helped by volume-driven growth in the domestic market.

The company had posted a net profit of Rs 237.38 crore in the corresponding quarter last year, said TCPL, earlier known as Tata Global Beverages Ltd, in a BSE filing.

Its revenue from operations during October-December 2021 rose 4.52 per cent to Rs 3,208.38 crore, compared with Rs 3,069.56 crore in the year-ago period.

Total expenses of the Tata Group's FMCG arm stood at Rs 2,832.68 crore in the December 2021 quarter, a rise of 1.5 per cent as against Rs 2,790.72 crore a year ago.

Commenting on the result, TCPL Group Chief Financial Officer L Krishnakumar said it was a "strong quarter" led by volume-driven growth during the quarter in the key business of India like Tata Salt.

"The biggest driver for volume growth was increased distribution. We are increasing our distribution. The strength of distribution and expansion of distribution were the most important drivers. Apart from this, we have new product launches under the brands," Krishnakumar told PTI.

TCPL's revenue from its 'India- beverages' segment rose 1.01 per cent to Rs 1,277.68 crore, against Rs 1,264.83 crore a year ago.

"For the quarter, the India packaged beverages business recorded a six per cent volume growth, on an elevated base that grew 10 per cent in volume terms," it said.

Its India food business jumped 16.12 per cent to Rs 732.36 crore, against Rs 630.64 crore a year ago.

"The salt portfolio continued its momentum and recorded double-digit growth during the quarter along with market share gains. The premium salts portfolio continued its strong trajectory in line with our premiumisation agenda," said TCPL in a post-earnings statement.

However, its revenue from the 'international-beverages' declined 4.28 per cent to Rs 896.62 crore, against Rs 936.76 crore in the corresponding quarter of the previous year.

"During the quarter, the International Beverages business revenue was marginally down cycling an elevated base driven by increased in-home consumption of tea and coffee last year," it said.

While its JV, Tata Starbucks, recorded revenue growth of 60 per cent in the third quarter on a relatively low base of last year that was impacted by reduced mobility.

"Revenue grew 37 per cent when indexed to the same period in FY20," it said.

TCPL Managing Director and CEO Sunil D'Souza said, "We delivered strong performance with improved profitability in a challenging operating environment. Both tea and salt recorded market share gains."

He added that despite inflationary pressures, the company delivered double-digit growth in Ebitda (earnings before interest, tax, depreciation and amortisation) for Q3 (third quarter).

D'Souza also said the company kept the momentum on innovation with several new launches across categories. "We continue to invest behind our brands and new businesses and expand distribution across channels."

With tea inflation tapering off, the company has seen a significant expansion in the Indian beverages margin. However, with inflation in the foods business, it will address these through the dynamic management of P&L.

"We remain committed to progressing our transformation agenda and building for future growth," D'Souza said.

Shares of Tata Consumer Products Ltd on Wednesday settled at Rs 742.50 apiece on BSE, up 0.88 per cent from the previous close.