Tata Consumer Products Ltd. reported a 28% year-on-year increase in consolidated net profit for the first quarter, as improved operating margins and lower tea costs in India supported earnings.
The company posted a consolidated net profit of Rs 427 crore for the first quarter, up 27.8% from Rs 334 crore a year earlier. The figure was largely in line with the consensus estimate of Rs 432 crore, as shared by the analysts tracked by Bloomberg.
Revenue from operations rose 11.9% year-on-year to Rs 5,349 crore, compared with Rs 4,779 crore in the corresponding quarter last year.
The topline was also largely in line with market expectations of Rs 5,398 crore.
Operating performance also improved during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19.3% to Rs 724 crore, up from Rs 607 crore a year ago, although it came in slightly below the consensus estimate of Rs 739 crore.
The company's EBITDA margin expanded to 13.53% from 12.7% in the year-ago period, broadly matching analysts' expectations of 13.6%.
Tata Consumer said the improvement in operating performance was primarily driven by lower tea costs in India, which helped offset the impact of elevated coffee prices in the US.
The company, however, continued to face inflationary pressure on several key input costs.
It also said higher investments behind its brands weighed on costs during the quarter, reflecting its continued focus on strengthening market presence and supporting long-term growth.
Despite cost headwinds, the company delivered double-digit growth in revenue and profitability, with margin expansion highlighting improved operating leverage and favourable commodity costs in its India tea business.
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