The company posted a consolidated net profit of ₹427 crore for the April-June quarter, compared with ₹334 crore a year earlier.
The figure was ahead of the CNBC-TV18 poll estimate of ₹410 crore, signalling a stronger-than-expected start to the financial year.
Revenue from operations rose 11.9% year-on-year to ₹5,348.8 crore, marginally above the CNBC-TV18 estimate of ₹5,340 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19.9% to ₹724 crore, broadly in line with the Street’s expectation of ₹725 crore.
Margins improve
The company’s EBITDA margin expanded to 13.5% from 12.7% a year ago, broadly matching the CNBC-TV18 poll estimate of 13.6%.
An expanding EBITDA margin indicates that the company generated more operating profit from every rupee of sales, reflecting better cost management and a favourable product mix.
India business leads the way
Tata Consumer said its India branded business delivered 13% volume growth, comfortably ahead of the CNBC-TV18 poll estimate of 8-9%.
Volume growth is a closely watched metric in the FMCG sector because it reflects higher consumer demand rather than just price hikes.
The company said Tata Sampann continued to register strong growth, driven by categories such as dry fruits, cold-pressed oils, pulses and spices.
Its ready-to-drink beverages business also delivered a strong performance, supported by its core brands as well as new product launches.
International business remains resilient
The company’s international business reported 16% revenue growth, or 3% growth in constant currency, led by a strong performance in the United States.
Constant currency growth strips out the impact of exchange rate movements, giving a clearer picture of the underlying business performance.
Management remains upbeat
Managing Director and CEO Sunil D’Souza said the company delivered another quarter of double-digit revenue growth, which translated into nearly 29% growth in consolidated net profit.
He added that Tata Consumer launched 14 new products during the quarter and remains focused on strengthening its core portfolio, scaling its growth businesses and delivering sustainable profitable growth.
The steady pace of product launches also reflects the company’s strategy of driving growth through innovation while deepening its presence in high-growth food and beverage categories.
Shares of Tata Consumer Products ended 1.42% lower at ₹1,092 apiece on the National Stock Exchange on Friday.
