Tata Consumer on Friday beat Street estimates, reporting an almost 8% increase in net profit for the quarter ended September 2024 (Q2FY25) to Rs 364 crore, compared to Rs 338 crore in the same period last year. Analysts polled by Bloomberg had projected a net profit of Rs 343 crore for the quarter under review.
Revenue for the quarter grew nearly 13% year-on-year to Rs 4,214 crore, slightly below street estimates of Rs 4,340 crore. The company’s India beverage business grew by 3%, though it saw a 4% decline when excluding Organic India. Notably, the coffee segment recorded a 29% year-on-year revenue increase.
In the India foods segment, revenue rose by 28%, or 9% when excluding Capital Foods. The value-added salt portfolio showed strong momentum, growing by 26%, with rock salt achieving record volumes, according to the company.
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“Our India tea business was impacted by subdued category trends. Tata Starbucks reached the milestone of being the largest café operator by store count, with 457 stores across 70 cities,” said Sunil D’Souza, managing director and CEO of Tata Consumer.
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On the operational front, earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 12.5% year-on-year to Rs 841 crore, surpassing street estimates of Rs 626 crore. However, Ebitda margins slightly contracted by 10 basis points to 19.9% in Q2, down from 20% a year ago, primarily due to higher input costs for the India tea business, the company noted.
The international business achieved 7% revenue growth (5% in constant currency terms), with profitability improving by over 53% year-on-year.
Additionally, the company completed the merger of its wholly-owned subsidiaries in India—NourishCo, Tata Soulfull, and Tata Smart Foodz—during Q2, in line with its strategy to “simplify, synergise, and scale the business”, the company stated.
Shares of Tata Consumer closed at Rs 1,094.65 on Friday, up Rs 4.20 or 0.39% on the BSE.
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