Tata Consumer Products Faces Profit Challenge Amid Rising Tea Costs

Tata Consumer Products reported a slight increase in net profit to Rs 367.21 crore for Q2 2024, driven by strong growth in India Foods and value-added salt businesses. However, rising tea costs impacted margins, leading to a 16.06% decline in profit before exceptional items. Revenue surged 12.87%.

Tata Consumer Products, a leading FMCG firm, saw its consolidated net profit inch up by 0.9% to Rs 367.21 crore in the second quarter, despite pressure from rising tea costs in India.

The company's revenue from operations soared by 12.87% to Rs 4,214.45 crore. However, profit before exceptional items and tax fell by 16.06%, primarily due to finance costs and expenses from recent acquisitions.

The India Foods business demonstrated robust growth, with a 28% revenue increase, while their branded business portfolio posted a 12.44% rise. Tata Starbucks expanded, adding 19 new stores, fortifying its position as India's largest cafe chain.

(With inputs from agencies.)