Tata Consumer Products reported single-digit profit growth on Friday for the quarter through September, on a double-digit revenue increase
The company’s consolidated net profit rose some 4.6% year over year in the three months to 30 September to INR2.86bn, on a 9% increase in revenue from operations at INR30.33bn, as per a 22 October regulatory filing. On a like for like basis, revenue from operations grew 11%.
The company, part of India’s Tata Group, said its topline was bolstered by a 14% growth in the Indian beverages business, as well as a 23% jump in the domestic foods business. International business revenue growth remained flat.
The firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5% to INR4.2bn during the period under review, the second quarter of the ongoing Indian financial year ending in March.
Second largest tea company
Tata Consumer Products is the second-largest branded-tea company in the world. Its beverage brands include Tata Tea, Tetley and Himalayan Natural Mineral Water, while the food portfolio comprises brands such as Tata Salt and breakfast cereal label Soulfull.
“We delivered another quarter of double-digit revenue growth despite a high base last year,” said Tata Consumer Products’ chief executive Sunil D’Souza.
“Our India business performed well… both our beverages and foods businesses recorded strong revenue growth with both tea and salt seeing market share gains. While the worst of tea inflation seems to be behind us, we are now seeing inflationary trends in packaging and freight costs. We will address these by further strengthening operating efficiencies and driving net revenue management,” he added.
Earlier in the day, shares in Tata Consumer Products finished 2.4% lower at INR795.25 on the National Stock Exchange (NSE). The stock has dropped for five straight sessions, valuing the firm at around INR750bn.
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