Tata Consumer Products Q2 net profit down 6.55% to Rs 363.92 crore

New Delhi, Oct 31: Tata Consumer Products Ltd (TCPL) on Tuesday reported a 6.55 per cent decline in consolidated net profit to Rs 363.92 crore in the September quarter. The company had a higher profit of Rs 389.43 crore in the year-ago period due to exceptional gains from the sale of assets, according to a regulatory filing.

Revenue rises 11%

However, the company's consolidated profit before exceptional items and tax was 36.43 per cent higher in the second quarter in the ongoing fiscal at Rs 505.43 crore as against Rs 370.46 crore in the year-ago quarter. Its revenue from operations rose 11.02 per cent to Rs 3,733.78 crore during the quarter from Rs 3,363.05 crore.

Growth in India and international business

Profit before exceptional items and tax at Rs 505 crore is higher by 36 per cent, reflecting growth in both India and international business despite higher investments behind brands as well as improved performance in the non-branded business, TCPL said in its earning statement. The group's net profit before exceptional items was Rs 375 crore, up 24 per cent, it added.

Total expenses rise 9.8%

Total expenses of TCPL, earlier known as Tata Global Beverages Limited (TGBL), stood at Rs 3,318.18 crore, up 9.8 per cent in the September quarter. TCPL's overall branded business was up 11.83 per cent to Rs 3,353.81 crore during the quarter.

Growth drivers

TCPL's branded businesses include tea, coffee, water and other various value-added businesses. While its revenue from the non-branded business was at Rs 388.28 crore, up 4.43 per cent during the quarter as against Rs 371.80 crore. Its revenue from the India business was at Rs 2,404.07 crore, up 11.3 per cent. TCPL's total income in the September quarter increased 12.71 per cent to Rs 3,823.61 crore.

FMCG growth drivers

Asked about the growth drivers, TCPL Group CFO L Krishnakumar told PTI, "Our growth drivers of volume growth is tea, premiumisation of salt and continued growth in the growth portfolio Tata Sampann, Tata Soulfull and NourishCo of the company. In the salt business, it was led by premiumisation, volume growth in tea and in the rest of the portfolio it was led by premiumisation, he added. So overall, our growth portfolio grew almost 40 per cent," said Krishnakumar, adding that TCPL continues to expand its distribution reach, almost at 4 million outlets.

India business

During the quarter, TCPL's India packaged beverages business, comprising Himalayan, Tata Copper Plus Water, and Tata Gluco+ in the hydration segment, delivered 5 per cent revenue growth and 3 per cent volume growth. Its India foods business delivered 16 per cent revenue growth and 6 per cent volume growth. The value-added salt portfolio continued its strong momentum and recorded double-digit revenue growth during the quarter, it said. TCPL continued to retain market leadership in the tea segment.

International business

TCPL's revenue from international markets was up 13.21 per cent to Rs 949.74 crore during the quarter from Rs 838.87 crore a year ago. In the UK, the rollout of the revamped Tetley tea bag continued through the quarter and consumer response has been positive. Additionally, we forayed in the breakfast cereals category with the launch of a millet-based muesli range under the brand name Joyful in over 430 Tesco stores across the UK, it said. While in the US, Tetley and Teapigs continued to outpace category growth rates. In Canada, Tetley continued to outpace the regular tea and the speciality tea categories during the quarter, it said.

Outlook

TCPL Managing Director & CEO Sunil DSouza said, "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." Shares of Tata Consumer Products Ltd on Tuesday settled at Rs 900.60 apiece on BSE, up 0.81 per cent from the previous close.