Tata Consumer Products Q4 profit rises three-fold to Rs239 crore; Stock dips 1%

5 May 2022 , 09:23 AM

Tata Consumer Products Ltd. stocks in focus today as the company has announced its results for the quarter and fiscal year ended March 31, 2022.

Consolidated Results:

• Revenue from Operations for the quarter at Rs3175 crore, up 5% on reported basis, and up 6% on a like to like basis, net of exits
• Revenue from Operations for the year at Rs12425 crore, up 7% on reported basis and up 9% on a like to like basis, net of exits
• Consolidated EBITDA for the quarter at Rs458 crore grew by 45% and for the full year at Rs1749 crore grew by 11%
• Group Net Profit for the quarter at Rs239 crore and for the full year Rs1015 crore

For the quarter, Revenue from operations increased by 5% (4% in constant currency) as compared to corresponding quarter of the previous year, mainly driven by growth in the India branded business. Profit before exceptional items and tax at Rs403 crore is higher by 54%. Group Consolidated Net Profit at Rs239 crore is higher by 222% mainly aided by growth in underlying profitability and lower exceptional costs.

Some of the key Business updates are:
India

• For the year, the India Packaged Beverages business recorded 6% growth in revenues, on an elevated base that saw 32% revenue growth last year.
• In addition to recording market share gains in branded tea, we maintained our leadership position in the tea category in the e-commerce channel.
• Continuing the innovation agenda, during the quarter, we launched an adrak (ginger) flavoured tea under the Tata Tea Agni brand in core markets of the North.
• The premium portfolio in tea continued to gain market share. This includes brands such as Tata Tea Gold, Chakra Gold, Tata Tea Gold Care and Chakra Gold Care.
• Coffee revenues grew 46% during the year, led by several new launches and distribution expansion. These new launches included Tata Coffee Gold, Tata Coffee Quick Filter and new Sonnets range.
• For the year, the India Foods business registered 19% revenue growth, on an elevated base that saw 18% revenue growth last year.
• The salt portfolio continued its momentum and recorded double digit growth during the year along with market share gains. The premium salts portfolio recorded 26% growth during the year, continuing its strong trajectory in line with our premiumisation agenda.

Sunil D’Souza, 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 Ready-to-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.”

On Thursday morning trade, Tata Consumer Products was trading at Rs793.70 down by 1% on the NSE.