Tata Consumer Products profit grows 36% to ₹355 crore in Q2 FY23

• Tata Consumer Products’ revenue rose 11% year-on-year at ₹3,363 crore.
• Its margin was impacted due to inflationary and pricing pressures in international markets.
• Amid heightened inflation and adverse currency movements, the FMCG player says it will execute a cost saving plan to protect margins going ahead.

Tata Consumer Products’ second quarter net profit grew 36% to ₹355 crore from ₹261 crore in the same quarter last year. Its revenues rose 11% to ₹3,363 crore from ₹3,033 crore in the same period.

Its EBITDA margin contracted to 13% in Q2 FY23 as compared to 13.9% in Q2 FY22.

“We delivered another quarter of double digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in international markets,” said Sunil D’Souza, MD & CEO of Tata Consumer Products.

In domestic business, the India packaged beverages business recorded 7% revenue decline due to pricing corrections and overall softness in the category.

Tata Salt, Tata Sampann, NourishCo, Tata Soulfull and coffee segments witnessed strong growth momentum.

“We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out of home businesses - NourishCo and Tata Starbucks recorded strong growth during the quarter,” said D’Souza in an exchange filing.

Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by normalized store operations and a revival in out of home consumption.

Amid heightened inflation and adverse currency movements, the FMCG player says it will execute cost saving plans to protect margins going ahead.

“While unprecedented inflation and adverse currency movements in our international business have weighed on our margin this quarter, we will be driving structural cost saving initiatives to improve the trajectory going forward. Our transformation agenda to become a leading FMCG company continues to be on track,” said the company.

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