Tata Consumer Products reported its quarterly earnings for the July to September period in which it witnessed 11 percent annual revenue growth despite a difficult demand environment, the company said in its regulatory filing on Thursday.

The FMCG firm’s revenue came in at Rs 3,363 crore, marginally higher than the CNBC-TV18 poll estimate of Rs 3,340. In the corresponding quarter a year ago, the revenue was recorded at Rs Rs 3033.2 crore.

Tata Consumer’s net profit for the second quarter of the fiscal stood at Rs 328 crore versus the poll projection of Rs 270 crore.

"Volume market share gains continued in both the core categories of tea & salt, even as value market share in tea declined marginally due to price cuts," the firm said.

During the quarter, India business grew 9 percent driven by India Beverages and India Foods. While the former business saw a decline of 2 percent with a percent decline in volume, the latter registered 29 percent growth with flat volumes.

Within the beverages category, India Packaged Beverages business recorded 7 percent revenue decline due to pricing corrections and overall softness in the category. “We continued to record volume market share gains in branded tea,” the firm said.

The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in the same quarter last year. The salt portfolio also continued to record market share gains, the company said.

It added that the coffee segment continued its strong performance with a revenue growth of 39 percent during the quarter.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position.”

The firm called Tata Sampann, NourishCo, and Tata Soulfull its new engines of growth that have delivered significant growth and are expanding their portfolio and reach. “Our out-of-home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter,” it added.

Tata Consumer’s margin stood at 12.9 percent versus poll expectations of 12.7 percent. In the September quarter of the last fiscal, the company recorded a margin of 13.6 percent. D’Souza noted that unprecedented inflation and adverse currency movements in International business weighed on the company’s margin.

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