Tata Consumer Products Q3 Results: Profit Flat, Revenue Up 17%
TCPL's reported a mixed Q3FY25 performance, with revenue growth driven by strong sales in the India business, but the Ebitda margin contracting due to higher commodity costs.
Tata Consumer Products Ltd.'s consolidated net profit stayed flat in the third quarter of the current financial year.
The Tata Tea maker's profit was flat at Rs 278.88 crore in the quarter ended Dec. 30, 2024, according to an exchange filing on Thursday.
TCPL Q3 FY25 Highlights (Consolidated, YoY)
Revenue up 17% to Rs 4,443.6 crore versus Rs 3,803.9 crore.
Ebitda down 1% to Rs 564.7 crore versus Rs 572.4 crore.
Margin narrows to 12.7% versus 15%.
Net profit flat at Rs 278.88 crore versus Rs 278.87 crore.
TCPL posted a 23% growth in its India business, driven by a 10% increase in India packaged beverages, with tea volumes growing 7%. The company also strengthened its salt market share by 110 basis points, with the salt segment delivering 7% value growth and 1% volume growth following a price increase.
However, tea market share dipped by 20 basis points due to cost pressures. The e-commerce channel grew 59%, while modern trade recorded a 14% growth, reflecting a shift in consumer purchasing behaviour.
The company's international business saw a 35% year-on-year improvement in profitability, but Ebitda and margin were impacted by significant inflation in India tea costs. The net profit was affected by interest costs and higher amortisation.
TCPL's distribution reach has now expanded to pharmacies and food service channels, further strengthening its market presence. E-commerce now accounts for 15% of the total sales, slightly ahead of modern trade.
Tata Starbucks continued its expansion, adding 16 new stores and entering four new cities, bringing the total store count to 473 across 74 cities. Improving demand trends led to 8% year-on-year growth in Q3, with sales growing 10% sequentially.
The company is also rolling out a food services pilot in 16 cities and extending its pharma pilot to 40 markets. Additionally, combined sales for Capital Foods and Organic India crossed Rs 850 crore in the first nine months of FY25.
