Mumbai: Tata Consumer Products Ltd reported a flat net profit of Rs 359 crore for the September quarter, media reports said.
The owner of Tetley Tea and Ching’s Secret noodles announced an increase of 13% revenue during the period under review to Rs 4,214 crore, up from Rs 3,734 crore in the same period last year, according to the company’s filing on October 18, reported Moneycontrol.
The company’s EBITDA for the quarter grew by 11% to Rs 629 crore, primarily due to higher input costs in the India tea segment.
Tata Consumer noted that erratic weather patterns affected tea and salt production in India, leading to cost inflation.
As a result, India beverages had a challenging quarter, with revenue declining 3% and volume dropping by 4%.
The company implemented staggered price hikes across its tea brands to offset rising raw tea prices, the report said.
Meanwhile, coffee continued its growth, surging 29% during the quarter, despite global demand pressures caused by record-high coffee prices.
Tata Starbucks added 19 new stores during the quarter, expanding into five new cities, bringing the total store count to 457 across 70 cities as of September 2024.
India Foods saw a strong 28% revenue growth. Tata Salt, which saw a price increase in October to address rising input costs, recorded a 2% revenue increase with flat volumes.
Value-added salts grew by 26%, while rock salt achieved record volumes.
In its investor presentation, the company stated, "Price increase announced in Tata Salt to combat the input cost increase."
The company’s international business also saw a 7% revenue increase, while its newly acquired businesses, Capital Foods and Organic India, delivered strong results.
"The newly acquired growth businesses of Capital Foods and Organic India continue to deliver improving quarterly run-rates with strong EBITDA expansion YoY," the company noted, with Capital Foods’ revenue growing 25% QoQ and Organic India’s by 45% QoQ, according to Moneycontrol.
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