Tata Consumer Products

5 May 2022 , 12:31 AM

For the quarter ending March 2022, consolidated net sales (including other operating income) of Tata Consumer Products has increased 4.55% to Rs 3175.41 crore compared to quarter ended March 2021.  Sales of Branded Business segment has gone up 4.49% to Rs 2,843.85 crore (accounting for 89.19% of total sales).  Sales of Non Branded Business segment has gone up 6.49% to Rs 344.64 crore (accounting for 10.81% of total sales).  Inter-segment sales rose Rs 8.90 crore to Rs 13.35 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 44.36% to Rs 415.31 crore.  PBIT of Branded Business segment rose 54.88% to Rs 386.00 crore (accounting for 92.94% of total PBIT).  PBIT of Non Branded Business segment fell 23.81% to Rs 29.31 crore (accounting for 7.06% of total PBIT).  

PBIT margin of Branded Business segment rose from 9.16% to 13.57%.  PBIT margin of Non Branded Business segment fell from 11.89% to 8.50%.  Overall PBIT margin rose from 9.45% to 13.03%.  

Operating profit margin has jumped from 9.88% to 13.99%, leading to 48.01% rise in operating profit to Rs 444.33 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 43.41% to 36.91%.   Purchase of finished goods cost rose from 17.51% to 19.54%.   Employee cost decreased from 8.87% to 8.24%.   Other expenses rose from 20.37% to 21.65%.   Selling and administration expenses fell from 7.10% to 6.93%.   

Other income rose 10.31% to Rs 47.39 crore.  PBIDT rose 43.29% to Rs 491.72 crore.  Provision for interest rose 6.21% to Rs 16.41 crore.  Loan funds declined from Rs 1,633.55 crore as of 31 March 2021 to Rs 1,412.01 crore as of 31 March 2022.  Inventories rose to Rs 2,266.51 crore as of 31 March 2022 from Rs 2,249.16 crore as of 31 March 2021.  Sundry debtors were higher at Rs 835.15 crore as of 31 March 2022 compared to Rs 761.32 crore as of 31 March 2021.  Cash and bank balance declined from Rs 3,074.88 crore as of 31 March 2021 to Rs 2,599.89 crore as of 31 March 2022.  Investments declined from Rs 805.89 crore as of 31 March 2021 to Rs 797.28 crore as of 31 March 2022.  

PBDT rose 45.04% to Rs 475.31 crore.  Provision for depreciation rose 9.47% to Rs 72.11 crore.  Fixed assets increased to Rs 5,092.21 crore as of 31 March 2022 from Rs 4,539.41 crore as of 31 March 2021.  Intangible assets increased from Rs 7,596.57 crore to Rs 7,754.11 crore.  

Profit before tax grew 53.99% to Rs 403.20 crore.  Share of profit/loss was 14.93% higher at Rs -50.18 crore.  Extraordinary items were increased to Rs -18.65 crore.  Provision for tax was expense of Rs 95.32 crore, compared to Rs 64.57 crore.  Effective tax rate was 28.51% compared to 46.48%.

Minority interest increased 5.18% to Rs 21.51 crore.  Net profit attributable to owners of the company increased 303.60% to Rs 217.54 crore.  

Equity capital stood at Rs 92.16 crore as of 31 March 2022 to Rs 92.16 crore as of 31 March 2021.  Per share face Value remained same at Rs 1.00.  

Promoters stake was 34.68% as of 31 March 2022 ,compared to 34.68% as of 31 March 2021 .  Promoters pledged stake was 1.20% as of 31 March 2022 ,compared to 1.20% as of 31 March 2021 . 

Full year results analysis.

Net sales (including other operating income) of Tata Consumer Products has increased 7.10% to Rs 12425.37 crore.  Sales of Branded Business segment has gone up 7.02% to Rs 11,249.20 crore (accounting for 90.26% of total sales).  Sales of Non Branded Business segment has gone up 8.22% to Rs 1,214.44 crore (accounting for 9.74% of total sales).  Inter-segment sales rose Rs 45.26 crore to Rs 52.05 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 10.39% to Rs 1,582.69 crore.  PBIT of Branded Business segment rose 10.96% to Rs 1,490.04 crore (accounting for 94.15% of total PBIT).  PBIT of Non Branded Business segment rose 1.94% to Rs 92.65 crore (accounting for 5.85% of total PBIT).  

PBIT margin of Branded Business segment rose from 12.77% to 13.25%.  PBIT margin of Non Branded Business segment fell from 8.10% to 7.63%.  Overall PBIT margin rose from 12.32% to 12.70%.  

Operating profit margin has jumped from 13.31% to 13.83%, leading to 11.34% rise in operating profit to Rs 1,718.78 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.02% to 39.38%.   Purchase of finished goods cost fell from 17.99% to 17.77%.   Employee cost increased from 8.26% to 8.41%.   Other expenses rose from 18.60% to 20.65%.   Selling and administration expenses rose from 6.18% to 6.75%.   

Other income rose 15.39% to Rs 140.06 crore.  PBIDT rose 11.63% to Rs 1858.84 crore.  Provision for interest rose 5.95% to Rs 72.78 crore.  Loan funds declined from Rs 1,633.55 crore as of 31 March 2021 to Rs 1,412.01 crore as of 31 March 2022.  Inventories rose to Rs 2,266.51 crore as of 31 March 2022 from Rs 2,249.16 crore as of 31 March 2021.  Sundry debtors were higher at Rs 835.15 crore as of 31 March 2022 compared to Rs 761.32 crore as of 31 March 2021.  Cash and bank balance declined from Rs 3,074.88 crore as of 31 March 2021 to Rs 2,599.89 crore as of 31 March 2022.  Investments declined from Rs 805.89 crore as of 31 March 2021 to Rs 797.28 crore as of 31 March 2022.  

PBDT rose 11.88% to Rs 1786.06 crore.  Provision for depreciation rose 9.13% to Rs 278.01 crore.  Fixed assets increased to Rs 5,092.21 crore as of 31 March 2022 from Rs 4,539.41 crore as of 31 March 2021.  Intangible assets increased from Rs 7,596.57 crore to Rs 7,754.11 crore.  

Profit before tax grew 12.40% to Rs 1,508.05 crore.  Share of profit/loss was 0.73% lower at Rs -63.79 crore.  Extraordinary items were decreased to Rs -52.06 crore.  Provision for tax was expense of Rs 377.04 crore, compared to Rs 317.27 crore.  Effective tax rate was 27.08% compared to 25.43%.

Minority interest increased 7.60% to Rs 79.38 crore.  Net profit attributable to owners of the company increased 9.23% to Rs 935.78 crore.  

Equity capital stood at Rs 92.16 crore as of 31 March 2022 to Rs 92.16 crore as of 31 March 2021.  Per share face Value remained same at Rs 1.00.  

Promoters stake was 34.68% as of 31 March 2022 ,compared to 34.68% as of 31 March 2021 .  Promoters pledged stake was 1.20% as of 31 March 2022 ,compared to 1.20% as of 31 March 2021 .  

Cash flow from operating activities decreased to Rs 1,515.81 crore for year ended March 2022 from Rs 1,656.37 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 273.34 crore, compared to Rs 210.68 crore during the year ended March 2021.  

Other Highlights

The Board has recommended a final dividend of Rs 6.05 per equity share of Re 1 each (605%), for the financial year 2021-22. The Dividend, if approved by the members at the ensuing Annual General Meeting (AGM), will be paid/dispatched after the AGM and within 30 days of its declaration.

In Q4 FY22, the India Packaged Beverages business recorded volume growth of  3% growth, India Foods business registered a 19% revenue growth and 8% volume growth, International business grew 1% and NourishCo revenue grew by 83% on YoY basis.

Salt revenue grew 15% during the quarter, on a high base of last year.

Tata Starbucks recorded revenue growth of 76% in FY22 on YoY basis. Company Opened 23 new stores during Q4 and entered four new cities- Goa, Bhubaneshwar, Nashik and Guwahati. This brought the total number of store additions to 50 during FY22.

In FY22, UK revenue degrew by 2%, USA revenue stayed flat and Canada degrew by 7% on YoY basis.

In Q4 FY22, India business contributed 69% of total revenue and International busines 31%.

In FY22, India business contributed 70% of total revenue and International busines 30%.

In FY22, Ecommerce channel continued its strong trajectory, accounting for 7.3% of India business sales, up from 2.5% in FY20.

Management Comments :

Sunil DSouza, Managing Director & CEO of Tata Consumer Products said ?Despite all the macro & operating challenges during the year, we delivered reasonable revenue growth along with improved profitability for the company. In the core businesses, we delivered competitive growth with market share gains in both tea and salt. Our out-of-home businesses - NourishCo and Starbucks both delivered robust performance during the year. With tea inflation tapering off, India Beverages business saw a return to normalized margins but the foods business margin was impacted by significant inflation during the year. We dynamically managed the P&L to expand the EBITDA margin for the company, while significantly increasing the A&P in India business and investing behind new businesses to accelerate future growth. Our transformation agenda is on track and we made substantial progress against our strategic priorities during the year. We entered the value added, high margin Readyto- Eat category with the acquisition of Tata SmartFoodz. We expanded and strengthened our S&D infrastructure, accelerated momentum on innovation, invested in new drivers of growth and embarked on a global simplification plan to drive further efficiencies and synergies.?

Tata Consumer Products : Consolidated Results

Quarter ended Year ended Particulars 202203 202103 Var.(%) 202203 202103 Var.(%) Net Sales (including other operating income) 3,175.41 3,037.22 4.55 12,425.37 11,602.03 7.10 OPM (%) 13.99 9.88 411 bps 13.83 13.31 53 bps OP 444.33 300.20 48.01 1,718.78 1,543.76 11.34 Other Inc. 47.39 42.96 10.31 140.06 121.38 15.39 PBIDT 491.72 343.16 43.29 1,858.84 1,665.14 11.63 Interest 16.41 15.45 6.21 72.78 68.69 5.95 PBDT 475.31 327.71 45.04 1,786.06 1,596.45 11.88 Depreciation 72.11 65.87 9.47 278.01 254.74 9.13 PBT 403.20 261.84 53.99 1508.05 1341.71 12.40 Share of Profit/(Loss) from Associates -50.18 -58.99 14.93 -63.79 -63.33 -0.73 PBT before EO 353.02 202.85 74.03 1444.26 1278.38 12.98 EO Income -18.65 -63.93 70.83 -52.06 -30.65 -69.85 PBT after EO 334.37 138.92 140.69 1392.2 1247.73 11.58 Taxation 95.32 64.57 47.62 377.04 317.27 18.84 PAT 239.05 74.35 221.52 1015.16 930.46 9.10 Minority Interest (MI) 21.51 20.45 5.18 79.38 73.77 7.60 Net profit 217.54 53.9 303.60 935.78 856.69 9.23 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 217.54 53.9 303.60 935.78 856.69 9.23 EPS (Rs)* 2.50 0.98 155.08 10.54 9.53 10.63 * EPS is on current equity of Rs 92.16 crore, Face value of Rs 1, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Tata Consumer Products : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202203 202103 Var.(%) % of (Total) 202203 202103 Var.(%) Sales Tea 0.00 0.00 0.00 - Coffee & Other Produce 0.00 0.00 0.00 - Branded Business 89.19 2,843.85 2,721.73 4.49 90.26 11,249.20 10,511.67 7.02 Non Branded Business 10.81 344.64 323.64 6.49 9.74 1,214.44 1,122.17 8.22 Total Reported Sales 100.00 3,188.49 3,045.37 4.70 100.00 12,463.64 11,633.84 7.13 Less: Inter segment revenues   13.35 8.90 50.00   52.05 45.26 15.00 Net Sales 100.00 3,175.14 3,036.47 4.57 100.00 12,411.59 11,588.58 7.10 PBIT Tea 0.00 0.00 0.00 - Coffee & Other Produce 0.00 0.00 0.00 - Branded Business 92.94 386.00 249.23 54.88 94.15 1,490.04 1,342.85 10.96 Non Branded Business 7.06 29.31 38.47 -23.81 5.85 92.65 90.89 1.94 Total PBIT 100.00 415.31 287.70 44.36 100.00 1,582.69 1,433.74 10.39 Less : Interest 16.41 15.45 6.21 72.78 68.69 5.95 Add: Other un-allcoable -14.35 -74.34 80.70 -53.92 -53.99 0.13 PBIT Margin(%) Tea   0.00 0.00 0.00 Coffee & Other Produce   0.00 0.00 0.00 Branded Business   13.57 9.16 441.61   13.25 12.77 47.09 Non Branded Business   8.50 11.89 -338.21   7.63 8.10 -47.05 PBT 100.00 384.55 197.91 94.31 100.00 1,455.99 1,311.06 11.05

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