Tata Consumer Products Q4 Results: Net profit drops 22% to ₹267 crore, revenue up 8.5% YoY; dividend declared

Tata Consumer Products Q4 Results: Tata Consumer announced its January-March quarter results for fiscal 2023-24 (Q4FY24) on Tuesday, April 23, reporting a drop of 22.5 per cent in its net profit at ₹267.7 crore, compared to ₹345.6 crore in the corresponding period last year. The Tata Group-company's revenue from operations in the fourth quarter of the fiscal rose 8.5 per cent to ₹3,927 crore, compared to ₹3,619 crore in the year-ago period.

Tata Consumer Product's board also announced a final dividend of 775 per cent for FY24. ‘’The board has recommended a final dividend of Rs. 7.75 per equity share of Re. 1 each (775 per cent) for the financial year 2023-24. ‘’The dividend, if approved by the members at the ensuing 61st Annual General Meeting, will be paid/dispatched after the AGM and within 30 days of its declaration,'' said Tata Consumers in a regulatory filing to the stock exchanges.

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On an operational basis, the company's (earnings before interest, taxes, depreciation, and amortization) EBITDA for the March quarter came in at ₹629.6 crore, compared to ₹511.7 crore in the same period last year, reporting a growth of 23 per cent. The EBIT margin rose to 16 per cent, up 160 basis points higher, compared to 14 per cent in the year-ago period. The group net profit before exceptional items at ₹427 crore is up 46 per cent driven by strong operating performance and one-time tax credits during the quarter.

Tata Consumer Products key business updates

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said, “We delivered good topline growth of 10 per cent in FY24, but importantly an EBITDA growth of 24 per cent and significant expansion in EBITDA margin.''

‘’Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong growth trajectory with a revenue growth of 40 per cent in FY24. Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities,'' added D'Souza. On an average, the company launched a new product almost every seven days in FY24.

For the quarter, the India Foods business grew 20 per cent, continuing its double-digit growth trajectory. In line with our premiumization agenda, the value-added salt portfolio continued its strong momentum and grew 34 per cent during FY 24, accounting for nine per cent of the overall salt business. Tata Sampann portfolio recorded a robust growth of 42 per cent for the quarter. 

Nourishco (RTD business) recorded revenue growth of 13 per cent during the quarter, bringing FY24 growth to 33 per cent. Ecommerce channel grew 35 per cent and Modern Trade recorded nine per cent growth in FY24. Tata Starbucks saw the highest store addition at 95 stores. This brought the total number of stores to 421 across 61 cities.

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Ahead of the announcement of Q4FY24 results, shares of Tata Consumer Products settled 0.07 per cent higher at ₹1,173.25 apiece on the BSE. Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company’s portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.

Tata Consumer Products is the second largest branded tea company in the world. Its key beverage brands include Tata Tea, Tetley, Organic India, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Copper+ and Tata Gluco+. Its foods portfolio includes brands such as Tata Salt, Tata Sampann, Tata Soulfull, Ching’s Secret and Smith & Jones. The company has a consolidated annual turnover of Rs. 15,206 crore with operations in India and international markets.