SSPL WEALTH PVT LTD

Hot Pursuit

Scrips, which has significant changes during the market hours.

Tata Consumer Q4 PAT stands at Rs 133 cr

06-May-21 17:25 Hrs IST

The company reported an exceptional loss of Rs 63.93 crore during the quarter. It mainly represents the costs relating to the business restructure and re-organisation of Rs 18 crore and loss on disposal of an overseas subsidiary/joint venture of Rs 46 crore.

Net sales soared 26.28% (24% in constant currency) to Rs 3,037.22 crore in Q4 FY21 from Rs 2,405.03 crore in Q4 FY20, mainly driven by strong volume and value growth in the India Food & Beverage business.

Profit before exceptional items and tax at Rs 262 crore in Q4 FY21 is higher by 6%, as compared to corresponding quarter of the previous year, mainly on account of tea cost inflation in India and higher investment behind brands which partly offset the revenue growth and strong control on overheads.

The board has recommended a final dividend of Rs 4.05 per equity share for the FY 2020-21.

For the full year, consolidated net profit jumped 102% to Rs 930 crore while revenues climbed 20% to Rs 11,602 crore over the same period last year. Consolidated profit before exceptional items for the full year grew by 24% to Rs 1342 crore.

During the quarter and financial year ended 31 March 2021, the group's performance was not adversely impacted by the COVID-19 pandemic but recorded good top line growth in many markets, except for some businesses, in particular, those in out of home consumption sectors. Commodity costs were adversely impacted in India. There can be future business uncertainties depending on developments in relation to the pandemic, particularly those arising from the second wave in India, which could include market closures, supply constraints and commodity cost volatility, the firm highlighted.

For the quarter, the India packaged beverages business recorded a 53% value growth and 23% volume growth, driven by robust growth across most of our brands that also resulted in market share gains. For the quarter, the India Foods business registered a 22% revenue growth and 21%volume growth. This translated to 17% revenue growth in Salt portfolio and 26% revenue growth in Tata Sampann portfolio for the year.

During the year, Tata Salt saw market share gains with value-added salts portfolio growing much faster in line with premiumisation agenda.

During the quarter, the international beverages business growth rates slowed owing to pantry loading in the base quarter last year. During the year, Tetley grew share in the rapidly growing segments of decaf, fruit & herbal and green tea in the UK.

Eight O'Clock Coffee recorded good growth during the quarter. Innovation momentum continued with good performance of Barista Blends and the K cup decaf variant.

Tata Starbucks recorded revenue growth of 14% in Q4 FY21. It opened 39 new stores and entered 7 new cities during the year. The year saw new store formats - drive through & small engine stores and entry into cities of Kochi, Lucknow, Amritsar, Ludhiana, Bhopal, Indore and Kanpur.

Sunil D'Souza, managing director & CEO of Tata Consumer Products said: We delivered yet another Quarter of strong revenue growth, driven by double digit volume growth in India business. The integration of our food and beverage businesses in India is complete as committed and we have started seeing synergy benefits. During the year, we have stepped up our distribution reach, invested behind our brands, and focused on premiumisation in our core portfolio. We continued the momentum in driving the Digital agenda with digitalization of channel partners, implementation of best in class ERP and a new integrated business planning system covering demand and supply planning. Overall,this year, despite the pandemic, we completed the integration of India business, made significant progress in our transformation journey, delivered strong earnings growth in the face of unprecedented inflation in a key raw material, while prioritising the safety and well-being of our people. Going forward, we will continue to make consistent progress against all our strategic pillars and create value for all stakeholders.

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.

Shares of Tata Consumer Products rose 0.62% to end at Rs 653.40 on BSE. The scrip hovered in the range of Rs 638.15 to Rs 655 during the day.