Tata Consumer Products Q3 net up 21.5% yoy at Rs265.05cr on strong EBIT growth in India beverages vertical

3 Feb 2022 , 11:50 AM

Tata Consumer Products reported 4.52% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs3,208cr. On a sequential basis, the revenues were up by 5.78%.

During the December 2021 quarter, Tata Consumer reported flat revenue growth in the India beverages business at Rs1,278cr. the India foods business grew 16% at Rs732cr while the international business was lower by -4.3% at Rs897cr.

On the non-branded business, the growth yoy stood at an impressive 26.7% at Rs312cr. The revenue growth was slightly lower at around 4% in constant currency terms. The packaged beverages business grew volumes by 6% on a higher base.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 31.97% at Rs391.86cr. During the quarter, the EBITDA was up 28% at Rs468cr with most of the operating profit growth coming from the beverages business.

For example, the India beverages business saw EBIT growing 185% at Rs220.27cr in Q3. EBIT on the India foods business more than halved to Rs42cr.

EBIT of the international business grew 16% yoy. Operating margins improved sharply from 9.67% in Dec-20 quarter to 12.21% in the Dec-21 quarter. Operating margins were higher on a sequential basis by 87 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was up 21.49% yoy at Rs265.05cr on the back of the robust operating performance getting transmitted to the bottom line. Both tea and salt recorded market share gains in the quarter.

The growth in profits came despite the inflation impact on input costs. PAT margins improved from 7.11% in the Dec-20 quarter to 8.26% in the Dec-21 quarter. The PAT margins were lower on a sequential basis by 58 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	Tata Consumer
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 3,208.38	₹ 3,069.56	4.52%	₹ 3,033.12	5.78%
EBITDA (Rs cr)	₹ 391.86	₹ 296.93	31.97%	₹ 343.99	13.92%
Net Profit (Rs cr)	₹ 265.05	₹ 218.17	21.49%	₹ 268.04	-1.12%
Diluted EPS (Rs)	₹ 2.88	₹ 2.37		₹ 2.91
EBITDA Margin	12.21%	9.67%		11.34%
Net Margins	8.26%	7.11%		8.84%