How did you see the quarterly numbers of Tata Consumer Products?
Answer
Answer
For the third quarter ended Dec-21, Tata Consumer Products (TCPL) reported 4.5% growth in sales at Rs.3,208 crore yoy consolidated. TCPL reported flat revenue growth in India beverages business at Rs.1,278 crore while the India foods business grew 16% at Rs.732 crore. While international business was tepid, the non-branded business grew at an impressive rate of 26.7% at Rs.312 crore. Beverages volumes grew 6% on a higher base.
Tata Consumer
Rs in Crore
Dec-21
Dec-20
YOY
Sep-21
QOQ
Total Income (Rs cr)
₹ 3,208.38
₹ 3,069.56
4.52%
₹ 3,033.12
5.78%
EBITDA (Rs cr)
₹ 391.86
₹ 296.93
31.97%
₹ 343.99
13.92%
Net Profit (Rs cr)
₹ 265.05
₹ 218.17
21.49%
₹ 268.04
-1.12%
Diluted EPS (Rs)
₹ 2.88
₹ 2.37
₹ 2.91
EBITDA Margin
12.21%
9.67%
11.34%
Net Margins
8.26%
7.11%
8.84%
Operating profits were up a healthy 31.97% at Rs.392 crore in the Dec-21 quarter. This was triggered by 28% EBITDA growth at Rs.468 crore with strong traction from beverages business. India beverages business EBIT grew 185% at Rs.220.27 crore in Q3 even as the EBIT on the India foods business more than halved to Rs.42 crore on higher cost overheads. Operating margins surged from 9.67% to 12.21% yoy. OPM was 87 bps higher sequentially.
PAT for the Dec-21 quarter was up 21.5% yoy at Rs.265 crore due to the transmission of the robust operating performance. Both tea and salt recorded market share gains in the quarter. Incidentally, the salt business is what was transferred from Tata Chemicals as part of the internal reorganization. The growth in profits was impressive despite the inflation impact on input costs.
PAT margins improved from 7.11% in the Dec-20 quarter to 8.26% in the Dec-21 quarter for Tata Consumer Products. However, the PAT margins were lower on a sequential basis by 58 bps.