Tata Consumer Products on Tuesday reported a 25.26 per cent rise in consolidated net profit to Rs 237.03 crore for the third quarter ended December 2020, helped by higher sales in branded business.
The company had posted a net profit of Rs 189.23 crore in October-December quarter a year ago, Tata Consumer Products Ltd (TCPL) — earlier known as Tata Global Beverages Ltd — said in a BSE filing.
Its revenue from operations rose 23.13 per cent to Rs 3,069.56 crore during the quarter under review as against Rs 2,492.96 crore in the corresponding period last fiscal.
TCPL Group CFO L Krishnakumar said it is a “strong quarter” again by the company with an improvement in top-line and profit.
“That is driven by the performance of the branded business across markets, both India as well as international,” he said in a post-earnings call.
Its total expenses increased 23.68 per cent to Rs 2,790.72 crore as against Rs 2,256.39 crore.
During Q3 FY 2019-20, TCPL’s revenue from its ‘India – Beverages’ segment surged 46.08 per cent to Rs 1,275.43 crore as against Rs 873.12 crore.
For the quarter, the India Packaged Beverages business recorded 10 per cent volume growth, driven by robust growth across most of its brands and market share gains, TCPL said in a statement.
“The health and wellness portfolio in beverages was strengthened with new product launches- Tata Tea Tulsi Green, Tata Tea Gold Care and Tetley Green Tea Immune,” it added.
Its India – Foods business rose 18.75 per cent to Rs 630.64 crore as against Rs 531.06 crore in the corresponding period previous fiscal.
“For the quarter, the India Foods business registered a 19 per cent value growth and 12 per cent volume growth. This was the third consecutive quarter of double-digit revenue growth across the Tata Salt and Tata Sampann portfolio,” the statement said.
Revenue from International – Beverages climbed 8.75 per cent to Rs 926.16 crore compared to Rs 851.64 crore.
“During the quarter, the International Beverages business saw steady growth across our key markets – UK, USA and Canada,” it said.
Tata Starbucks has seen a strong sequential recovery with 92 per cent of the stores now have re-opened for business.
Tata Starbucks, a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation, opened 13 new stores and entered 3 new cities during the quarter, the company said.
“Despite unprecedented inflation in our tea costs in the India business, we managed to deliver strong growth in earnings by leveraging all lines of the P&L. The integration of our food and beverage business in India is progressing ahead of plan and several initiatives on end to end digitisation are underway,” TCPL Managing Director & CEO Sunil D’Souza said.
Shares of Tata Consumer Products Ltd on Friday settled at Rs 575.55 apiece on BSE, down 1.52 per cent from the previous close.