Tata Consumer Products Ltd on May 4 declared a 222 percent jump in its consolidated profit after tax (PAT) of Rs 239 crore for the quarter ended Mach 22, as compared to a PAT of Rs 74.35 crore recorded during the corresponding quarter last year. On a sequential basis, the profit declined 17.6 percent from Rs 290 crore achieved during the previous quarter of current financial year.
The growth in profits was mainly aided by growth in underlying profitability and lower exceptional costs.
Consolidated revenues for the FMCG arm of Tata Group rose 4.5 percent to Rs 3,175 crore as compared to Rs 3,037 crore during the same period a year ago. Compared to the previous quarter, the revenues have remained flat with a marginal decline of 1 percent.
For the full-year period, the consolidated profit increased 9 percent to Rs 1,015 crore as compared to Rs 930 crore recorded for FY21.
The revenues for FY22 increased by 7 percent to Rs 12,425 crore from the revenues of Rs 11,602 crore for FY21.
Higher revenue was driven by growth in the company's packaged beverages business, premium tea portfolio and India foods business.
“Despite all the macro & operating challenges during the year, we delivered reasonable revenue growth along with improved profitability for the company,” said Sunil D’Souza, Managing Director & CEO.
The company delivered competitive growth with market share gains in both tea and salt. Its out-of-home businesses – NourishCo and Starbucks - both delivered robust performance during the year, he added.
“With tea inflation tapering off, India Beverages business saw a return to normalized margins but the foods business margin was impacted by significant inflation during the year. We dynamically managed the P&L to expand the EBITDA margin for the company, while significantly increasing the A&P in India business and investing behind new businesses to accelerate future growth”, said D’Souza.
Business performance
The company’s India Packaged beverages business grew by 6 percent on year, on a high base of last year when the business had achieved a growth of 32 percent over the previous year. It was able to add to its market share in the premium tea business that comprises of brands like Tata Tea Gold and Tata Tea Gold Care.
Coffee business returned another year of robust growth, registering a growth of 46 percent year on year. Its India foods business grew by 19 percent on year on a high base of 18 percent of growth.
The Tata Sampann brand witnessed double-digit growth for the year while Tata Q brand achieved the second position in the Ready to Eat category.
The company witnessed healthy traction in its international businesses, while Tata Starbucks saw strong revenue growth of 76 percent during the year over last year. For the quarter, revenue for Tata Starbucks grew 32 percent, partially impacted by the third wave of Covid-19.
Tata Starbucks opened 23 new stores during the quarter and entered four new cities- Goa, Bhubaneshwar, Nashik and Guwahati. This brought the total number of store additions to 50 during FY22.
Distribution
The company now has access to 1.3 million outlets, which it hopes to take to 1.5 million outlets by the end of current fiscal. It feeds these outlets through its distributors, which have grown by 25 percent during the year as compared to last year. The company also increased its penetration into the hinterland of India by increasing the strength of its rural/semi-urban distributors by 4 times over last financial year.
Sales through e-commerce channel increased from 2.5 percent of domestic sales last year to 7.3 percent in the current fiscal.
Dividend
The company has declared a divided on Rs 6.05 per share for FY21-22.
On May 04, Tata Consumer Ltd stock ended Rs 21.1 lower at Rs 803 at the National Stock Exchange. The stock has generated returns of 24.5 percent during the past one year and has gained 2 percent in the past one month.
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