Tata Consumer’s FY24 profit drops 3%, revenue up 10%; declares dividend of ₹7.75

Tata Consumer Products, the fast-moving consumer goods arm of the Tata Group, on Tuesday released its earnings report, which showed that its consolidated revenue from operations grew 10% year-on-year to ₹15,206 crore in the financial year ended March 31, 2024. The FMCG company had posted revenue of ₹13,783 crore in FY23. The board of the company has also recommended a final dividend of ₹7.75 per equity share of ₹1 each (775%) for the financial year 2023-24.

For the full financial year, the consolidated profit after tax (PAT) declined 3% to ₹1,301 crore as compared to ₹1,347 crore in the previous fiscal.

On the operating front, EBITDA rose 24% to ₹2,323 crore in FY24 as against ₹1,874 crore in the financial year ended March 31, 2023, driven by strong performance by all businesses. The margin improved to 15.3% from 13.6% in FY23.

“EBITDA margin expansion across all businesses on account of pricing interventions that offset overall cost increases and good performance of non-branded business,” Tata Consumer Products says in an exchange filing today.

“We delivered good topline growth of 10% in FY24, but importantly an EBITDA growth of 24% and significant expansion in EBITDA margin,” says Sunil D’Souza, Managing Director & CEO, Tata Consumer.

For the January-March period of the current fiscal (Q4 FY24), the consolidated revenue from operations was up 9% YoY to ₹3,927 crore, with strong performance in India business, which grew 10%. The PAT of the company dropped 23% to ₹268 crore versus ₹346 crore in Q4 FY23. The EBITDA, however, was up 22% YoY at ₹631 crore, while margin improved to 13.1 % from 12% in the corresponding period last fiscal.

During the year, the company recorded growth in India tea and salt businesses. “In FY24, premium and sub premium segments outperformed the overall business and accounted for over two thirds of India Tea revenue. Gold, Premium and Tetley green franchises delivered strong results,” the company says in its earnings report.

As per the company, premiumisation agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio. “Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong growth trajectory with a revenue growth of 40% in FY24.

In the tea business, Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities. The year saw the highest store addition at 95 stores, taking the total number of stores to 421 across 61 cities. In the March quarter of FY24, the company added 29 net new stores and entered 6 new cities.

“In India, we solidified our sales & distribution infrastructure; our total reach has expanded to 4 million outlets as of March’24. We implemented split routes in all 1 million + population towns and have seen significant improvement in assortment and growth,” says CEO of Tata Consumer.

“We are strengthening our Rurban focus and are deepening reach into rural areas. Alternate channels (modern trade and e-commerce) recorded significant momentum and continue to be strong growth drivers,” he adds.

Ahead of Q4 earnings, Tata Consumer shares ended 0.07% higher at ₹1,173.25 on the BSE.