FMCG firm Tata Consumer Products Ltd (TCPL) on Friday reported an 11.6 percent year-on-year (YoY) jump in net profit at Rs 261.4 crore for the second quarter ended September 30.

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In the corresponding quarter last year, the company posted a net profit of Rs 234.3 crore. CNBC-TV18 Poll had predicted a profit of Rs 275 crore for the quarter under review.

Total income during the September quarter stood at Rs 3,033 crore, up 5.6 percent, from Rs 2,871 crore in the year-ago quarter. For the quarter, revenue from operations, net of exits, grew by 11 percent as compared to the corresponding quarter of the previous year, mainly driven by the growth of 14 percent in Indian beverages and 23 percent in Indian foods.

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International business revenues growth, excluding exited businesses, is flat. Profit before exceptional items and tax at Rs 364 crore is higher by 5 percent on account of improved gross margin partially offset by higher spending behind brands.

For the quarter, the India packaged beverages business recorded a 10 percent revenue growth, on an elevated base last year. In addition to recording market share gains in branded tea, we continued to strengthen our leadership position in e-commerce. Tata Tea Premium was restaged in Maharashtra, in line with the brand’s hyperlocal strategy, with a TVC celebrating multi-faceted Marathi women.

Tata Consumer now has a direct reach of 1.1 million outlets, up from 0.5 million outlets on September 20 and is on track for a direct reach of 1.3 million outlets by FY22 exit. Rural reach has been further strengthened with 4,000+ rural distributors on board. E-commerce recorded 39 percent growth YoY and contributed around 7 percent of domestic sales. The institutional channel recorded significant growth of 117 percent YoY.

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Tata Starbucks recorded revenue growth of 128% in Q2 on a relatively low base of last year that was impacted by reduced mobility. Revenue grew 23 percent when indexed to the same period in FY20. Revenue has been on an upward trajectory each month since the opening up posts the second wave of Covid in India. The company opened 14 new stores during Q2 and entered one new city- Jaipur.

Sunil D’Souza, managing director and CEO of Tata Consumer Products said, "We delivered another quarter of double-digit revenue growth despite a high base last year. Our India business performed well, both our Beverages and Foods businesses recorded strong revenue growth with both tea and salt seeing market share gains. We continue to expand our distribution reach across channels while investing behind our brands. Innovation remains a focus area and we will further accelerate its pace as we move forward."

"Going forward, we will stay focused on driving growth in our core businesses while adding new levers of growth. While the worst of tea inflation seems to be behind us, we are now seeing inflationary trends in packaging and freight costs. We will address these by further strengthening operating efficiencies and driving net revenue management. We will continue to progress our transformation agenda while delivering profitable and sustainable growth," he said.

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The results came after the close of the market hours. Shares of Tata Consumer ended at Rs 795.60, down by Rs 19.90, or 2.44 percent on the BSE.

(Edited by : Jomy Jos Pullokaran)

First Published:Oct 22, 2021 7:39 PM IST