Tata Consumer Products Q1 net profit lower at Rs185cr on higher A&P expenses across verticals

Tata Consumer Products Ltd reported 10.85% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs3,008cr

Aug 04, 2021 01:08 IST India Infoline News Service

Tata Consumer Products Ltd reported 10.85% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs3,008cr. On a sequential basis, the revenues were down -0.95% compared to Rs3,037cr in the Mar-21 quarter showing some COVID impact.

The revenues in the quarter from Indian foods and Indian beverages was higher while the revenues from the international beverages business was lower on account of COVID impact. The packaged beverages business saw top line top line growth of 24% with 3% volume growth.

The Indian foods business registered a growth of 20% with 17% growth in volumes. The salt business acquired from Tata Chemicals has been one of the star performers.

Ecommerce channel grew by 153% yoy and now accounts for 7.3% of total sales of the company. Tata Starbucks showed revenue growth of 371%  with its delivery contribution increasing to 27% in the quarter.

EBITDA margins for the company were up sequentially but lower on a yoy basis by 450 bps at 13.4%. There was a sharp spike in the advertisement and promotion expenses during the quarter resulting in lower operating and net profits in the quarter.

During the quarter, the packaged beverages segment saw 140 bps growth in market share while the Indian foods portfolio saw 240 bps expansion in market share. The company also had exceptional gains of Rs63cr in the Jun-20 quarter from restructuring.

Net profit for the Jun-21 quarter was down -44% at Rs185.15cr on lower EBITDA, weak global performance and higher A&P expenses in the quarter. Net margins for the quarter were at 6.15% compared to 12.07% in the Jun-20 quarter and 1.77% in sequential Mar-21 quarter.


Financial highlights for Jun-21 compared yoy and sequentially


Tata Consumer Products
Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 3,008.46 ₹ 2,713.91 10.85% ₹ 3,037.22 -0.95%
Operating Profit (Rs cr) ₹ 332.70 ₹ 420.75 -20.93% ₹ 234.33 41.98%
Net Profit (Rs cr) ₹ 185.15 ₹ 327.56 -43.48% ₹ 53.90 243.51%
Diluted EPS (Rs) ₹ 2.01 ₹ 3.55 ₹ 0.58
OPM 11.06% 15.50% 7.72%
Net Margins 6.15% 12.07% 1.77%

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