Synopsis
Tata Consumer Products announced a consolidated net profit of Rs 299.75 crore for Q3 FY24-25, marking a 5% decline year-on-year. Revenue, however, rose by 16.8% to Rs 4,444 crore, driven by growth in India, international, and non-branded sectors.Key Takeaways
- Consolidated net profit down by 5% to Rs 299.75 crore.
- Revenue increased by 16.8% to Rs 4,444 crore.
- India operations grew by 10%.
- Tata Starbucks added 16 new stores.
- Strong growth in value-added salt and Tata Sampann portfolio.
Mumbai, Jan 30 (NationPress) Tata Consumer Products revealed on Thursday that it achieved a consolidated net profit of Rs 299.75 crore, reflecting a 5 per cent year-on-year decline for the third quarter (Q3) of the fiscal year 2024-25, compared to Rs 316 crore during the same timeframe last year.
Despite the profit decrease, Tata Consumer’s revenue from operations surged by 16.8 per cent to Rs 4,444 crore in Q3FY25 from Rs 3,804 crore in the corresponding quarter of the previous year, as per its filing with the stock exchange.
The firm reported that, excluding recent acquisitions, its revenue saw a 9 per cent year-on-year growth.
This positive trend was fueled by a 10 per cent increase in its India operations, a 4 per cent rise in international business, and an 8 per cent uptick in its non-branded division.
While the company’s operational performance in India faced challenges due to inflation in tea prices, enhanced performance in its international and non-branded sectors helped mitigate some of the impact.
Tata Consumer's consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) remained unchanged year-on-year, standing at Rs 578 crore.
The India beverages segment showed robust performance, reporting a 9 per cent revenue increase, reaching a multi-quarter peak. Within this category, coffee sales experienced a remarkable 28 per cent revenue growth in Q3 FY25. Additionally, the India foods sector saw a 31 per cent revenue rise compared to the previous year.
Tata Starbucks, a joint venture (JV) between Tata Consumer and Starbucks, continued to expand its footprint during the quarter, adding 16 new stores and entering four new cities, bringing its total store count to 473 across 74 cities.
The company’s value-added salt range maintained its strong performance, recording a 31 per cent growth in the last quarter.
The Tata Sampann range also excelled, achieving a 23 per cent revenue increase in Q3FY25.
In terms of international business, Tata Consumer experienced an 8 per cent year-on-year growth in Q3FY25, showcasing a significant improvement in profitability.
The company also reinforced its standing in the UK’s branded tea market, where it commands the second-largest market share.
