Updated April 23rd, 2024 at 18:03 IST

Tata Consumer Products reports higher Q4 profit boosted by robust local demand

The company's consolidated profit before exceptional items rose to Rs 509 crore from Rs 456 crore in the same period last year.

Reported by: Business Desk
Tata Consumer Products | Image:Tata Consumer Products
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Tata Consumer Products posted an increase in its fourth-quarter profit before a one-time charge, supported by robust performance in its domestic business segment, which focusses on essential items such as pulses, grains, and salt.

The company's consolidated profit before exceptional items rose to Rs 509 crore from Rs 456 crore in the same period last year.

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Tata Consumer incurred a one-time charge of Rs 216 crore related to acquisition costs during the quarter.

Revenue from its India-branded business witnessed growth of 10.4 per cent during the quarter. This segment, which includes popular brands like Tata Sampann pulses and Tata Salt, accounts for 63 per cent of the company's total revenue.

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Additionally, Tata Consumer reported a remarkable revenue growth of 45 per cent in its coffee products segment during the quarter.

International business revenue, covering regions such as America, the United Kingdom, and the Middle East, also experienced a significant uptick of nearly 11 per cent.

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Although consumer goods makers faced challenges such as muted volume growth and sluggish rural demand throughout the financial year 2024, analysts anticipate that discounts and price adjustments will stimulate demand.

Tata Consumer, which operates a joint venture with Starbucks in India, expanded its presence by opening 29 new Starbucks stores during the quarter.

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In January, the company announced its acquisition of two packaged food brands, Capital Foods and Organic India. "The transaction for Organic India closed on April 16, and we will focus on fast-tracking integration of the business to unlock value," said Sunil D'Souza, managing director and CEO.

Rivals Hindustan Unilever and Nestle India are also scheduled to report results this week.

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Tata Consumer's shares closed up 0.2 per cent ahead of the results. The stock has gained approximately 7 per cent in April compared to a 0.08 per cent drop in the Nifty FMCG Index.

(With Reuters inputs)
 

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Published April 23rd, 2024 at 18:03 IST