Tata Consumer Products reports 81.8% rise in Q1 net profit at Rs 346 crores
Tata Consumer Products Ltd (TCPL) on Tuesday reported 81.78 per cent rise in net profit at Rs 345.55 crore for June quarter helped by an increase in demand in some categories. The company reported a net profit of Rs 190.09 crore in April-June a year ago, said TCPL, earlier known as Tata Global Beverages Ltd, in a BSE filing.
Revenue from operations was up 13.44 per cent to Rs 2,713.91 crore during the quarter under review. It was Rs 2,392.36 crore in the corresponding period of the last fiscal. For the quarter, revenue from operations is higher by 13 per cent as compared to the corresponding quarter of the previous year led by volume and value growth in branded businesses both in India and International, TCPL said in an earning statement.
The company has acquired 50 per cent stake of PepsiCo India in NourishCo Beverages Ltd, making it a wholly-owned subsidiary with effect from May 18, 2020, and hence TCPL has shown a gain of Rs 84 crore.
The exceptional item for the current quarter represents a gain of Rs 84 crore on the conversion of a Joint Venture into a Subsidiary and costs relating to the business integration of foods business Rs 21 crore, it said.
Its total expenses were at Rs 2,310.44 crore as against Rs 2,117.69 crore, up 9.10 per cent.
According to Sunil D’Souza, TCPL Managing Director & CEO “we have recorded good revenue and profit growth in Q1 due to increased demand in some categories, strong marketing campaigns and adopting new routes to reach the end consumer effectively”.
He added that the integration of our foods and beverages businesses in India is progressing well and will unlock significant synergy benefits.
Shares of Tata Consumer Products Ltd on Tuesday settled at Rs449.75apiece on BSE, up 3.63 per cent from the previous close.