Tata Consumer Products Q2 FY25 Earnings Steady at ₹359.3 Crore Despite Market Challenges

Tata Consumer Products Ltd (TCPL), a major player in the FMCG sector, reported a net profit of ₹359.3 crore for the second quarter ending September 30, 2024. The company’s revenue from operations grew by 13% to ₹4,214.5 crore, up from ₹3,733 crore in the same period last year. 

In terms of operating performance, EBITDA increased by 16.6% to ₹626.3 crore compared to ₹537 crore during the same quarter last year. 

In the latest quarter, Tata Consumer Products Ltd reported an EBITDA margin of 14.9%, up from 14.4% in the same period last year. EBITDA stands for earnings before interest, tax, depreciation, and amortisation. 

The company’s revenue from operations increased by 13% (12% when adjusted for constant currency). Excluding acquisitions, the growth was 5% (4% in constant currency). Consolidated EBITDA grew by 11%, driven by strong performance in the international and non-branded sectors.

Profit before exceptional items and tax was ₹424 crore, down 16%, mainly due to higher finance costs and amortisation related to acquisitions. However, the short-term debt taken for these acquisitions has been paid off. The group’s net profit before exceptional items increased by 3% to ₹388 crore.

In the India beverages segment, revenue grew by 3% but declined by 4% when excluding Organic India due to weak demand. Nonetheless, coffee sales performed well, with a 29% increase in revenue.

In the Indian foods segment, revenue jumped by 28%, or 9%, when excluding Capital Foods. The value-added salt portfolio showed strong growth of 26%, with rock salt reaching record volumes. International business revenue rose by 7%, or 5% in constant currency terms, during the quarter.

Sunil D’Souza, the Managing Director and CEO of Tata Consumer Products, stated that they have achieved a topline growth of 13% in Q2 FY25, with EBITDA growth of 11%. 

The Indian tea business faced challenges due to weak trends in the category. Now that the integration of Capital Foods and Organic India is complete, strong synergy benefits are starting to emerge, with both businesses showing significant growth from the previous quarter. Additionally, Tata Starbucks has become the largest café operator by store count, with 457 stores across 70 cities.

On October 21, 2024, Tata Consumer Products Ltd’s share price opened at ₹1,047.00, touching the day’s high of ₹ 1,059.45 as of 10:40 AM on the NSE.

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