Tata Consumer Products Q2: Net profit up marginally to Rs 359.18 crore, revenue up 11.02%, exceeds estimates

TCPL announced their Q2 results.

Tata Consumer Products Ltd. (TCPL) on October 31 reported a consolidated net profit at Rs 359.18 crore for the September quarter of FY24, registering a growth of 1.18 percent from Rs 354.98 crore in the same quarter of the previous financial year. The group consolidated net profit stood at Rs 363.98 crore.

The company reported a 0.17 percent rise in profit from Rs 358.57 crore in the previous quarter.

Total revenue of the company is Rs 3733.78 crore, rising 11.02 percent from Rs 3363.05 crore in the year-ago quarter. The revenue decreased marginally from Rs 3741.21 crore in the previous quarter.

Consolidated Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter at Rs 569 crore growing 30 percent.

The revenue was largely in line but profit exceeded estimates. According to a poll of brokerages, TCPL Q2 revenue was seen at Rs 3,732 crore while net profit was Rs 341 crore.

"Our transformation journey to becoming a premier FMCG company is on track. Going forward, we will continue to focus on driving profitable growth along with building future ready capabilities. In tandem, we are progressing our Sustainability roadmap with our recently announced sustainability targets for FY26 which are in line with our long-term sustainability commitments.” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.

In the quarter, Tata Consumer's India Packaged Beverages business demonstrated a healthy performance with a 5 percent growth in revenue and 3 percent growth in volume. They maintained their market leadership in the E-commerce channel for tea products and saw robust growth in their coffee segment, with a significant 17 percent year-on-year revenue increase. They also introduced new products such as Tata Coffee Quick filter decoction coffee, Tetley Premium black leaf tea, and various health and wellness beverages.

The India Foods business delivered an impressive 16 percent revenue growth and 6 percent volume growth, driven by the success of their value-added salt portfolio, the expansion of the Tata Sampann brand, and the launch of a range of new products, including cold-pressed oils. Tata Consumer also expanded its distribution network and experienced growth in alternate channels like Modern Trade and E-commerce.

Internationally, the company achieved a 13 percent revenue growth (8 percent in constant currency) in the quarter.  In Canada, Tetley continued to perform well.

Tata Starbucks recorded a strong 14 percent revenue growth for the quarter, with store expansion and product offerings being key drivers of growth. They opened 22 new stores and entered new cities, bringing the total store count to 370 across 49 cities. Their focus on highway stores and the introduction of packaged sandwiches and overnight oats helped diversifies their offerings.

On October 31, TCPL closed 0.73 percent higher to Rs 900.05 on NSE.