{"id":4251,"date":"2022-02-03T19:53:43","date_gmt":"2022-02-03T14:23:43","guid":{"rendered":"https:\/\/businesstalkmagazine.com\/?p=4251"},"modified":"2022-02-03T19:59:52","modified_gmt":"2022-02-03T14:29:52","slug":"tata-consumer-q3-results-net-profit-up-21-to-rs-288-cr-revenue-rises-5","status":"publish","type":"post","link":"https:\/\/businesstalkmagazine.com\/news\/tata-consumer-q3-results-net-profit-up-21-to-rs-288-cr-revenue-rises-5\/","title":{"rendered":"Tata Consumer Q3 results: Net profit up 21% to Rs 288 cr, revenue rises 5%"},"content":{"rendered":"\n

On 2nd Feb, Tata Consumer Products reported a 21 percent year-on-year increase in its consolidated net profit for the October-December quarter at Rs 288 crore.<\/p>\n\n\n\n

The company’s revenue from operations grew 5 percent to Rs 3,208 crore. Apart from the international foodservice business exits, the company’s revenue from operations rose 6 percent during the quarter.<\/p>\n\n\n\n

Before interest, tax, depreciation, and amortization (EBITDA) grew 28 percent to Rs 468 crore.<\/p>\n\n\n\n

The company stated that the India business rose 6 percent, led by India beverages business growth of 1 percent with 6 percent volume growth and foods business growth of 16 percent with 4 percent volume growth.<\/p>\n\n\n\n

“In India beverages, we have witnessed enhanced momentum month-on-month with 5 percent volume growth in tea during the quarter, getting 2-year volume CAGR to 8 percent. We have also witnessed substantial volume growth across the Sampann and Nourischo businesses,” the Tata Group company said.<\/p>\n\n\n\n

The like-for-like growth in international business was at 2 percent on an elevated base. However, in constant currency terms, it contracted by 1 percent.<\/p>\n\n\n\n

Tata Consumer said that during the quarter, the international beverages business revenue went marginally down, cycling an elevated base driven by increase in-home consumption of tea and coffee last year,” <\/p>\n\n\n\n

Tata Starbucks registered revenue growth of 60 percent in the December quarter on a relatively low base of last year affected by reduced mobility. Revenue rose 37 percent when indexed to the same period in FY20.<\/p>\n\n\n\n

Tata Consumer MD and CEO Suni D’Souza commented that we delivered strong performance with enhanced profitability in a difficult operating environment. Both tea and salt recorded market share profits. Despite inflationary pressures, we had double-digit growth in EBITDA for Q3. We have maintained the momentum of innovation with several new launches across categories.<\/p>\n\n\n\n

With the Tata SmartFoodz acquisition, the company wants to expand its portfolio further into higher-margin, value-added categories. Additionally, as the company integrates and synergizes operations, work is underway on making its foods network future-ready in its supply and manufacturing footprint, he added.<\/p>\n\n\n\n

“With tea inflation tapering off, we have witnessed a considerable expansion in India beverages margin, however with inflation in foods business, we will manage these through dynamic management of P&L,” D’Souza said.<\/p>\n\n\n\n

On a standalone basis, the company’s net profit rose 38 percent to Rs 187 crore. Shares of the company closed 0.92 percent higher at Rs 742.75 on the BSE on Wednesday.<\/p>\n\n\n\n

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