Tata Consumer Products Posts Strong Q4 Results With 23% YoY Rise In Net Profit

  • Tata Consumer Products Net profit rises 23% YoY to Rs 268 crore for Q4
  • Revenue from operations increases by 14% YoY to Rs 3,619 crore
  • Final dividend of Rs 8.45/share declared for FY22-23
  • Tata Starbucks records strong revenue growth of 48% for Q4, bringing FY23 growth to 71%

In comparison to a loss of INR 217 crore in the same quarter last year, Tata Consumer Products has declared a net profit of INR 268 crore for Q4 of FY22, an increase of 23% YoY. The company’s operating revenue for the fourth quarter were INR 3,619 crore, an increase of 14% year over year. An underlying rise of 15% in the Indian business, 6% in the foreign business, and 9% in the non-branded business were the key contributors to the company’s revenue growth.

Revenue from the brand India business increased 15% year over year to INR 2,246 crore for the quarter, while revenue from the foreign branded business increased 20% to INR 984 crore. Subject to approval by shareholders at the AGM, the board has recommended a final dividend of INR 8.45 per equity share for the financial year 2022–23.

Summary Table

🏭 CompanyTata Consumer Products
💰 Q4 ResultsNet profit of Rs 268 crore, up 23% YoY
💸 DividendFinal dividend declared at Rs 8.45/share
💹 Revenue from operationsRs 3,619 crore, up 14% YoY
📈 Revenue GrowthIndia business up 15%, International business up 6%, Non-branded business up 9%
💰 Profit before taxRs 456 crore, up 13% YoY
💹 Operating profitRs 518 crore, up 13% YoY
☕ Tata Starbucks48% revenue growth, 71% YoY growth, 71 new stores added, total of 333 stores across 41 cities
🍹 India packaged beverages1% revenue growth, 3% volume growth
🧂 Salt portfolioStrong momentum with double-digit revenue growth
Source: Tata Consumer products’ Release

Strong Growth in India Branded Business Drives Revenue Growth

With robust growth in India’s branded business, Tata Consumer Products’ profit before unusual items and tax increased by 13% YoY to INR 456 crore. Revenues from unbranded businesses for the quarter totaled INR 385 crore, up 12% year over year. Operating profit for the quarter increased 13% YoY to INR 518 crore.

Strong Q4 growth was recorded by Tata Starbucks.

Tata Although on a pandemic-affected basis, Starbucks reported significant sales growth of 48% for Q4, bringing FY23 growth to 71%. The company had its highest-ever yearly store increase in 2018, with 71 new locations in 15 new cities. This increased the overall number of stores across 41 cities to 333.

On track with his transformation, Sunil D’Souza

Despite price increases made to combat inflation, we kept up our outstanding performance in our other major business—selling salt—and increased our market share. We are on pace with our transformation to become a leading FMCG company, and we’ll keep concentrating on generating profitable growth and developing capability for the future.

Sequential Recovery of India Packaged Beverages Business Records

The packaged beverage business in India experienced a sequential turnaround during the quarter, with 1% revenue increase and 3% volume growth. The business said that the salt portfolio kept up its strong momentum and experienced double-digit sales growth both during the quarter and overall.

Final thoughts

With a net profit up 23% YoY to INR 268 crore, Tata Consumer Products delivered a great result for the fourth quarter of FY22. The brand business in India grew by 15%, the international brand business by 6%, and the non-branded business by 9%, all of which contributed significantly to the company’s revenue growth. Tata Starbucks experienced exceptional quarterly revenue growth of 48%, bringing the growth rate for FY23 to 71%. The company’s transformation into a major FMCG company is proceeding as planned, and it will keep putting its emphasis on generating profitable growth and developing capabilities for the future.