TCPL Q1 net profit down 14.3% to Rs 289.25 cr, revenue up 16.32% to Rs 4,352 cr

New Delhi: Tata Consumer Products (TCPL) on Tuesday reported a 14.34% decline in consolidated net profit to Rs 289.25 crore in the first quarter ended in June 2024 on account of exceptional items and lower share of profits from its associates and joint ventures.

The company had posted a consolidated net profit of Rs 337.71 crore in the April-June quarter a year ago, according to a regulatory filing from TCPL.

Its revenue from operations rose by 16.32% to Rs 4,352.07 crore during the quarter under review. It was at Rs 3,741.21 crore in the year-ago period.

Total expenses of TCPL, earlier known as Tata Global Beverages (TGBL), stood at Rs 3,926.29 crore, up 18.82% in the June quarter.

"For the quarter, revenue from operations grew by 16% as compared to the corresponding quarter of the previous year. Organic growth, excluding acquisitions (Capital Foods and Organic India) was 10%," TCPL said in a statement.

Group consolidated net profit is lower on account of "higher exceptional items and lower share of profits from Associates and Joint Ventures,” it added.

TCPL had a cost of Rs 17 crore as an exceptional item related to business restructuring and organisation.

In the June quarter, TCPL's overall branded business was up 14.5 per cent to Rs 3,861.51 crore. It was at Rs 3,372.75 crore in the corresponding quarter last fiscal.

TCPL's branded businesses include tea, coffee, water and other various value-added businesses.

Its revenue from the branded business in India was up 13.6% to Rs 2,815.12 crore in the June quarter.

The contribution of TCPL's international business was up 17% to Rs 1,046.4 crore.

While, its revenue from non-branded business was at Rs 500.58 crore, up 32.76% during the quarter. This segment includes TCPL's plantation and extraction business of tea and coffee.

TCPL's total income, which includes other income, was up 15.6% to Rs 4,391.24 crore in the June quarter.

Commenting on the results, TCPL Managing Director and CEO, Sunil D’Souza, said, "We delivered good topline growth of 16% in Q1 FY25, with an EBITDA growth of 23%.”

During the quarter, TCPL recorded strong growth in the India salt business, while India's tea business was impacted by an intense summer.

"Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz, Capital Foods, Organic India) recorded 66 per cent growth," he said.

Tata Starbucks -- a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation -- added 17 net new stores during the quarter and entered 4 new cities. This brings the total number of stores to 438 across 65 cities.

"Tata Starbucks sustained momentum in its expansion agenda with its store count now at 438 stores spanning a total of 65 cities," said TCPL.

TCPL's International business profitability also improved significantly led by structural interventions and pricing actions.

"We also delivered strong performance in our international markets, along with significant margin expansion, led by structural interventions and pricing actions," said D’Souza.

Shares of Tata Consumer Products on Tuesday settled at Rs 1,193.85 apiece on BSE, down 0.64% from the previous close.