Tata Consumer Products Q2 Results Highlights: Net profit remains flat at ₹359.34 crore, revenue up 12.8%

• Revenue: ₹4,214.45 crore, up 12.8% YoY
• Net profit: ₹359.34 crore, up 0.04% YoY
• EBITDA: ₹626.3 crore, up 16.6% YoY
• Margin: 14.9%, up 50 bps YoY

• In line with our store addition plans, we added 19 net new stores during the quarter and entered 5 new cities. This brings the total number of stores to 457 across 70 cities.
• Tata Starbucks is now the largest organised café operator in India.

• For the quarter, the International business revenue grew 7% (+5% constant currency).
• International business profitability improved significantly led by strong topline in the UK business and structural interventions made earlier.

• With the integration completed for the newly acquired businesses, there was a strong sequential growth of 25% in Capital Foods and 45% in Organic India.
• Additionally, we are starting to realize strong synergy benefits in both businesses, with strong EBITDA margin expansion.

• For the quarter, the India Foods business revenue grew +28% (+9% excluding Capital Foods).
• The value-added salt portfolio continued its strong momentum and grew 26% during the quarter, with rock salt registering record volumes.
• Tata Sampann portfolio continued its strong momentum and grew 26% for the quarter. Whole spices were launched under the Tata Sampann umbrella.

• For the quarter, the India Beverages business revenue grew 3% (-4% excluding Organic India) impacted by subdued demand environment.
• Coffee continued its strong trajectory with a revenue growth of 29% for the quarter.
• Tata Tea Premium launched its hyperlocal 2.0 campaign in key markets- Uttar Pradesh, Punjab and Haryana.
• Tata Tea Chakra Gold Leaf launched new premium packs in Andhra Pradesh, Telangana and Tamil Nadu.
• The RTD (Ready To Drink) premium portfolio was strengthened with its recent launches- Tetley Kombucha and Tata Coffee Grand cold coffee.

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, said, "We delivered a topline growth of 13% in Q2 FY25, with an EBITDA growth of 11%. During the quarter, we recorded continued growth & market share gain in the India salt business, strong growth in Tata Sampann & Tata Soulful

Our India tea business was impacted by subdued category trends. With the integration completed for both Capital Foods and Organic India, we are starting to see strong synergy benefits and both businesses witnessed strong quarter-on-quarter growth. Tata Starbucks reached the milestone of being the largest café operator by store count, with 457 stores across 70 cities.

We delivered strong performance in the International Business along with significant margin expansion led by strong revenue growth in the UK and earlier structural interventions.

In India, we continued to strengthen our Sales & Distribution infrastructure with the rollout of a new Distributor Management system, centralized planning & dispatch capability and an auto replenishment system. Modern trade and e-commerce continue to be strong contributors to our growth. In addition, we are incubating new channels (Food Services/HoReCa and Pharmacies) to fuel growth.

The merger of our wholly owned subsidiaries in India- NourishCo, Tata Soulfull and Tata SmartFoodz was successfully completed during the quarter in line with our ambition to simplify, synergise and scale the business."

• Traded volume (Lakhs): 7.33
• Traded value: ₹79.36 crore
• Totak market capitalisation: ₹1,07,711.42 crore
• Free float m-cap: ₹70,736.02 crore

• Current price: ₹1,088 (-0.12%)
• Previous close: ₹1,090.1
• Open: ₹1,0901
• High: ₹1,095.2
• Low: ₹1,072

• N Chandrasekaran, Chairman
• PB Balaji, Non-Executive (Non-Independent) Director
• Bharat Puri, Independent Director
• Shikha Sharma, Independent Director
• David Crean, Independent Director
• KP Krishnan, Independent Director
• Sunil D’Souza, Managing Director & CEO
• Ajit Krishnakumar, Executive Director & Chief Operating Officer

• Traded volume (Lakhs): 4.42
• Traded value: ₹47.68 crore
• Totak market capitalisation: ₹1,07,295.87 crore
• Free float m-cap: ₹70,495.67 crore

• Tata Tea
• Tetley
• Tata Salt
• Tata Coffee Gold
• Tata Copper Water
• Tata Soulfull
• Tata Sampann
• Himalayan
• Tata Q

• Current price: ₹1,076 (-1.2%)
• Previous close: ₹1,090.1
• Open: ₹1,0901
• High: ₹1,095.2
• Low: ₹1,073

According to analysts, the Tata Group firm is expected to post healthy revenue and volume growth for Q2 FY25, led by new businesses. Revenue growth could be around ₹4,317 crore, up 15% year-on-year (YoY).

However, in its latest July-September quarter results, experts forecast a 5% fall in profitability due to higher finance costs and depreciation.