Tata Consumer Products gains after recording 21% YoY growth in Q3 PAT

3 Feb 2022 , 09:28 AM

Revenue from operations rose 5% YoY to Rs 3,208 crore during the quarter.

The company cited revenue growth in both branded and non-branded business, gross margin improvement in India beverages, improved performance in international business and higher exceptionals and higher taxes for new investments as reasons for improved profitability.

EBITDA improved by 28% to Rs 468 crore in Q3 FY22 from Rs 365 crore in Q3 FY21. EBITDA margin was 14.6% in Q3 FY22 as against 11.9% in Q3 FY21.

For the quarter, the India packaged beverages business recorded a 6% volume growth, on an elevated base that grew 10% in volume terms. The business registered 1% YoY rise in revenue in the third quarter.

The India Foods business registered a 4% volume growth and 16% revenue growth in Q3 FY22, on an elevated base last year.

During the quarter, the International Beverages business revenue was down 4% YoY, cycling an elevated base driven by increased in home consumption of tea and coffee last year. Revenue growth in the non-branded business in Q3 FY22 was 27% as compared with Q3 FY21.

Tata Starbucks recorded revenue growth of 60% in Q3 on a relatively low base of last year that was impacted by reduced mobility. Revenue grew 37% when indexed to the same period in FY20.

Sunil DSouza, managing director & CEO of Tata Consumer Products, said: ?Both tea and salt recorded market share gains. Despite inflationary pressures, we delivered double digit growth in EBITDA for Q3.

With the acquisition of Tata SmartFoodz, we are looking to expand our portfolio further into higher margin, value added categories. As we integrate and synergize operations, work is underway on making the TCPL foods network future ready in its supply and manufacturing footprint.

With tea inflation tapering off, we have seen a significant expansion in India Beverages margin, however with inflation in Foods business, we will address these through dynamic management of P&L.?

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The companys portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.

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