February 8, 2024
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Tata Consumer Q3 profit falls 20%
Tata Consumer Products’ third-quarter profit declined 20.7% y-o-y to Rs 279 crore. Bloomberg estimates had pegged Q3 net profit at Rs 350 crore as the company upped its presence in the packaged foods business. The acquisitions of Capital Foods and Organic India, announced last month, will reflect in the March quarter results, the company said.
Revenue for the December quarter grew 9.5% y-o-y to Rs 3,804 crore, marginally below Street estimates of Rs 3,812 crore for the period. Revenue increased due to an underlying growth of 10% in India business, 6% in international business and 4% in non-branded business, the company said in a statement on Wednesday.
The India packaged beverages business delivered 4% revenue growth. Coffee continued its strong performance, with revenue growth of 32% for the quarter. The India foods business grew 13%, continuing its double-digit growth trajectory.
Earnings before interest tax depreciation and amortisation (Ebitda) in Q3 grew 26.2% versus last year to Rs 572 crore as against the estimate of Rs.549 crore for the quarter under review.
Ebitda margin improved to 15% in Q3 versus 13.1% reported last year.
“Our sales & distribution buildout is progressing well, our total reach has expanded to 3.9 million outlets as of December 2023,” Sunil D’Souza, managing director and CEO of Tata Consumer Products said.
The value-added salt portfolio retained momentum and recorded 23% revenue growth during the quarter. Tata Sampann portfolio recorded robust growth of 40%. The company launched 45 new stock-keeping units in modern trade so far this year, and e-commerce now accounts for 10.7% of the India business, the company said.
Tata Starbucks added 22 net new stores during the quarter and entered six new cities.
Shares of Tata Consumer closed trade 0.29% on the BSE on Wednesday to Rs 1,166.15 apiece in a weak market.
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