Tata Consumer Products Q1 profit up 38 pc to Rs 277 cr

We also have a good quarter at Starbucks, Krishnakumar added.TCPLs non-branded business includes plantation and extraction for tea, coffee and other produce.In India, TCPLs foods business registered 19 per cent revenue growth.

Tata Consumer Products Ltd (TCPL) on Wednesday reported 38.2 per cent rise in consolidated net profit at Rs 276.72 crore for June quarter, helped by cost control initiatives and price increases during the period.

The company had posted a net profit of Rs 200.24 crore for April-June period a year ago, said TCPL, earlier known as Tata Global Beverages Ltd, in a BSE filing.

Revenue from operations was up 10.58 per cent to Rs 3,326.83 crore during the quarter as against Rs 3,008.46 crore in the corresponding period last fiscal year.

Speaking to PTI after Q1 results, TCPL Group CFO L Krishnakumar said:”Overall strict cost control and pricing action led us to this performance.'' ''We have a good quarter with a topline growth of 10 per cent and group net profit of 38 per cent. Yes, we also have inflation and impact in the food business, salt and overseas market but we were able to take up the prices to a large extent and apart from that we were very tight on the cost,'' he said.

Revenue from the Indian market in April-June FY23 was at Rs 2,145.20 crore as against Rs 1,971.76 crore in the year-ago period.

Its International Business contributed Rs 836.62 crore, up 9 per cent as against Rs 767.58 crore of Q1FY22.

During June quarter, TCPL's revenue from its non-branded business was at Rs 351.70 crore as against Rs 277.64 crore.

''The export of the non-branded business of the Tata Coffee also had a good quarter. We also have a good quarter at Starbucks,'' Krishnakumar added.

TCPL's non-branded business includes plantation and extraction for tea, coffee and other produce.

In India, TCPL's foods business registered 19 per cent revenue growth. Its salt portfolio continued momentum and recorded double-digit growth during the quarter and a record market share gains.

About tea, TCPL said,'' as we corrected tea pricing the India Packaged Beverages business recorded 4 per cent revenue decline on an elevated base that saw 24 per cent revenue growth in the same period last year.'' Coffee volume grew 43 per cent YoY with revenue growth of 73 per cent during the quarter with new SKU launches and rollout in new geographies, said TCPL in an earning statement.

Its water business NourishCo sustained strong growth momentum during the quarter with a 110 per cent revenue growth led by strong summer, said Krishnakumar.

Tata Starbucks, a 50:50 joint venture between TCPL and Starbucks Corporation, had a revenue growth of 238 per cent for the quarter, albeit on a low base, led by normalised store operations with lower restrictions.

It opened 7 new stores during Q1 and entered four new cities - Jalandhar, Anand, Nagpur, and Calicut - taking the total number of stores to 275 across 30 cities.

Commenting on the result, TCPL Managing Director & CEO Sunil D’Souza said:''We delivered double-digit revenue growth and improved profitability for the company despite a challenging macro environment and inflation impact in some of our categories.'' Shares of TCPL on Wednesday settled at Rs 790.25 apiece on BSE, up 0.25 per cent from the previous close.