Tata Consumer's Q4 net profit down y-o-y by 19% to Rs 217 crore

24 Apr 2024 , 10:12 AM

Owner of the Tetley tea and Ching's Secret noodle brands, Tata Consumer Products Ltd., recorded a net profit of ₹217 Crore for the fiscal fourth quarter, down 19% from ₹269 Crore in the same period last year.

In the three months ended March 31, revenue climbed by 8.5% to ₹3,927 Crore, according to a filing made by Tata Consumer on April 23.

While revenue was about on track, earnings fell short of projections.

The EBITDA margin increased by 190 basis points to 16%. Earnings before interest, taxes, depreciation, and amortisation is shortened to EBITDA. One tenth of a percentage point is equal to one basis point.

We strengthened our sales and distribution network in India, and as of March 24, we had 4 million outlets nationwide. We split the routes in every town with a population of one million or more, and the assortment and growth have significantly improved. We are expanding our presence into rural areas and bolstering our Rurban focus. Modern trade and e-commerce, or alternative channels, have gained a lot of traction and are still major growth engines. stated Tata Consumer Products' Managing Director and CEO, Sunil D'Souza.

The company kept its position as the market leader in tea for online sales. Coffee's stellar performance persisted, as its revenue increased by 45% throughout the quarter. The R&D company, Nourishco, saw a 13% increase in sales during the quarter, resulting in a 33% gain for FY24.

By March 2024, the company's overall reach to 4 million outlets was increased thanks to additional strengthening of its sales and distribution infrastructure. With the acquisition of more than 1300 distributors in FY24, mostly in Rurban regions, the reach was substantially expanded.

Our growth and innovation ambition was further propelled by alternative avenues. In FY24, the e-commerce channel expanded by 35%, while modern trade saw growth of 9%. In FY24, e-commerce made up 11% of India's business, up from 9% the previous year.

The revenue from international business increased by 7% (+5% in constant currency) throughout the quarter.

During the quarter, Tata Starbucks expanded into six new cities and added 29 net new locations. With 95 new stores, this year witnessed the greatest number of additions. As a result, there were 421 stores overall spread throughout 61 cities.

Tata Consumer Products Limited raised 0.07% from the previous day's finish to close trading on April 23 at ₹1173.25 on the BSE.

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