Tata Consumer Products Reports Mixed Q3 Results Amid Competitive Challenges
Tata Consumer Products Ltd (TCPL) reported a 6.5% decline in Q3 net profit due to challenges in the tea business, despite a 16.81% increase in revenue. The company prioritized competitiveness over profitability. The beverages and salt segments showed positive growth, while international business also performed well.
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- Country:
- India
Tata Consumer Products Ltd (TCPL) announced a 6.5% drop in consolidated net profit to Rs 281.92 crore for the third quarter ending December 2024, primarily due to difficulties in its tea business. Despite this, revenue rose by 16.81% to Rs 4,443.56 crore, showing overall top-line growth.
According to TCPL's CFO Ashish Goenka, the company's strategy prioritized growth over profitability, impacting margins. Tea prices increased by nearly 30% from the previous year, affecting EBITDA and reducing margins by 220 basis points. However, the company's Indian beverages and international business experienced robust revenue growth.
Managing Director & CEO Sunil D'Souza highlighted TCPL's top-line growth of 17% for Q3 FY25, driven by strong performance in beverages and foods. The firm also focused on expanding sales and distribution infrastructure and saw continued success with its Tata Starbucks stores, which now total 473 across 74 cities in India.
(With inputs from agencies.)