Tata Consumer Profit Slumps, Shares Dip

31 Jul 2024 , 11:42 AM

Wednesday saw a decrease in the price of Tata Consumer Products shares following the release of the company’s first-quarter financial results for the fiscal year 2024–2025 (Q1 FY25).

In the early trade, the stock was down 1.8% on the National Stock Exchange (NSE) at ₹1,173 per share. On the BSE, it dropped 1.5% to ₹1,175.1.

Compared to ₹316.5 crore in the same quarter last year, the consolidated net profit attributable to the company’s owners decreased 8.2% to ₹290.3 crore in Q1 FY25.

The FMCG behemoth said that its operating revenue increased by 16.3% to ₹4,352 crore in the most recent quarter, compared to ₹3,741.2 crore in the same period the previous year.

For the quarter that concluded on June 30, 2024, the earnings before interest, taxes, depreciation, and amortization, or EBITDA, was ₹667.4 crore, with a margin of 15.3%.

Tata Consumer Products, formerly known as Tata Global Beverages Limited, saw a 14.5% YoY increase in its total branded business to ₹3,861.5 crore in the June quarter.

At ₹1,046.4 crore, the company’s contribution to overseas business increased by 17%. Additionally, non-branded business revenue climbed by 32.7% to ₹500.5 crore.

The CEO and managing director of TCPL, Sunil D’Souza, stated in his analysis of the findings, “Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz, Capital Foods, Organic India) recorded 66 per cent growth.”

Tata Starbucks, a 50:50 joint venture between Starbucks Corporation and Tata Consumer Products Ltd, expanded into four additional cities and added 17 net new shops in Q1 FY25, for a total of 438 locations across 65 cities.

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