Tata Consumer June Quarter Profit Rises 15% on Tea, Salt Growth

Tata Consumer Products Ltd.'s consolidated net profit for the April–June quarter rose 15.1% on year to ₹3.3 billion, driven by strong sales of tea and salt, steady domestic volume growth, and narrowed losses in the plantations business. Revenue grew 9.8% to ₹47.8 billion, supported by a 12% rise in the India packaged beverages segment, a 14% increase in domestic foods, and 5% constant currency growth in international markets. Ready-to-drink beverages grew modestly 3% by volume, impacted by a short summer and early monsoon.

Amalgamated Plantations Pvt. Ltd., the group’s associate, reduced its loss to ₹147 million from ₹249 million, helped by better auction realisations. Still, higher tea procurement costs and coffee price corrections pressured margins. EBITDA fell 8% to ₹6.2 billion, with margins narrowing 250 basis points to 12.9%.

The India-branded business reported 6.8% volume growth, with tea and salt achieving double-digit value increases. The 'growth' portfolio—including Tata Sampann, Soulfull, Ready to Drink, Capital Foods, and Organic India—grew 7%, led by a 27% jump in Tata Sampann. Eight new products were launched under the ready-to-drink segment. Coffee sales rose sharply, with India revenue up 67%, despite price fluctuations.

E-commerce revenue surged 61%, while modern trade rose 21%. The company expanded food service and pharmacy distribution to 40 cities. Tata Starbucks added six new stores, bringing the total to 485 across 80 cities. Same-store sales remained positive, except for May, when operations were briefly impacted by geopolitical tensions.

India revenue rose 11% to ₹31.3 billion, while international operations contributed ₹11.5 billion. Total branded business revenue grew nearly 11% to ₹42.7 billion. The non-branded portfolio rose 7% to ₹5.4 billion. Salt volumes increased 5% and revenue 13%, while ready-to-drink revenue declined 13%, reflecting price cuts taken last year. Capital Foods and Organic India each grew 10%, with gross margins stable at 50%.

Total expenses rose 11% to ₹43.6 billion, with raw material costs up 21% to ₹20.4 billion. Operating margin fell to 9.76% from 12.01% a year earlier.