The financial outcomes of Tata Consumer Products for the fourth quarter that ended in March 2023 have been released. In comparison to a loss of Rs 217 crore during the same time last year, the company declared a net profit of Rs 268 crore, a considerable rise of 23% YoY. Operating revenue for the company increased 14% YoY to Rs 3,619 crore from Rs 3,175 crore during the same period last year.
The underlying growth of 15% in the India business, 6% in the overseas business, and 9% in the non-branded business was what caused the increase in revenue. Revenue for the quarter for the India business segment was Rs 2,246 crore, up 15% YoY from Rs 1,953 crore during the same time the previous year.
Revenue from the worldwide branded business increased by 20% to Rs 984 crore from Rs 890 crore in the same period last year. The fourth quarter’s non-branded business revenues were Rs 385 crore, up 12% from the same period the previous year.
The company recorded a profit before unusual items and taxes of Rs 456 crore, an increase of 13% YoY driven by significant segment-wise growth. Operating profit for the company was Rs 518 crore, up 13% year over year.
For the fiscal year 2022–2023, the board of directors recommended a final dividend of Rs 8.45 per equity share of Rs 1 each (845%). If the members at the AGM approve the dividend, it will be paid out within 30 days of the declaration.
Despite the pandemic’s effects, Tata Starbucks, a joint venture between Tata Consumer Products and Starbucks, reported robust sales growth of 48% for the quarter, bringing FY23 growth to 71%.
The company entered 15 new cities and established 71 new stores throughout the year, the greatest yearly store addition ever. This increased the company’s total number of stores to 333 across 41 cities.
The company’s branded tea business began to show early signs of growth during the quarter, and the interventions it implemented are beginning to bear fruit. Despite pricing measures adopted to combat inflation, Tata Consumer Products continued to perform well in the other core business of salt and increased market share.
Tata Consumer Products’ MD and CEO, Sunil D’Souza, noted in his statement that the company noticed initial signs of growth in its branded tea business during the quarter.
He said that they are on schedule to complete their transformation and become a leading FMCG company and that their primary focus will be on generating profitable growth while developing skills for the future.
In conclusion, Tata Consumer Products reported a net profit of Rs 268 crore for the three months that ended in March, an improvement of 23% YoY from the Rs 217 crore loss in the same time the previous year.
The company’s operating revenue for the fourth quarter was Rs 3,619 crore, an increase of 14% year over year. For the fiscal year 2022–23, the board’s recommended dividend was Rs 8.45 per equity share worth Rs 1 (845%). The India business, which grew by 15%, the international business, which grew by 6%, and the non-branded business, which grew by 9%, were the key drivers of the revenue rise.