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Aided by strong domestic demand, fast-moving consumer goods (FMCG) maker Tata Consumer Products’ consolidated net profit grew 42 per cent to ₹316 crore in the June quarter as against ₹255 crore reported during the same quarter last year.
The company posted an 18 per cent increase from ₹268 crore reported in the March quarter. Revenue from operations for the company increased 12.47 per cent to ₹3,741 crore (₹3,326 crore). Revenue increased 3.39 per cent to ₹3,618 crore for the March quarter.
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“We delivered strong top-line growth of 12 per cent along with earnings growth of 23 per cent this quarter. Despite the pricing actions taken earlier to manage inflation, we continue to maintain volume growth momentum in Salt. Our growth businesses (Tata Sampann, Tata Soulfull and NourishCo ) continued their strong growth trajectory, they grew 58 per cent this quarter and accounted for 20 per cent of the India branded business. Our innovation agenda fired on all cylinders with innovation-to-sales reaching 5 per cent during the quarter. In our sales and distribution expansion, we are on track to achieving a total reach of 4 million outlets by September 2023 and we will continue to expand direct distribution in smaller towns,” said Sunil D’Souza, Managing Director and CEO of Tata Consumer Products.
Domestic business
Tata Consumer Products’ domestic business saw a 16 per cent growth, while for the quarter the India packaged business delivered 2 per cent revenue growth and 3 per cent volume growth. Coffee saw a revenue growth of 21 per cent year on year, while the Sampann portfolio recorded a growth of 51 per cent.
The India food business delivered 24 per cent revenue growth and 6 per cent volume growth year on year.
“We continue to record strong growth momentum in alternative channels — modern trade and e-commerce,” added Sunil D’Souza. The company’s modern trade channel grew 22 per cent and the e-commerce grew 28 per cent.
International business and Starbucks
International business saw a revenue growth of 7 per cent, while Tata Starbucks recorded a revenue growth of 21 per cent for the quarter. The coffee chain opened 16 new stores during the quarter and entered four cities in India. The total number of Tata Starbucks stores is now 348 stores across 46 cities.
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