Tata Consumer Products Q4 Results 2022

Tata Consumer Products, among the top FMCG companies, announced its results on May 4, 2022.?

The company reported revenue growth of 5% y-o-y to Rs 3175 crore during the March quarter of FY22. This was mainly driven by growth in India branded business segments. Its profit stood at Rs 289 crores in March 2022 versus Rs 133.93 crores in the same period last year. Adjusted profit (adjusted for exceptional items) grew about 54% y-o-y.?

The EBITDA for the company registered a growth of 45% y-o-y during the quarter. Despite the significant inflationary pressure, the EBITDA margin (as a percentage of revenue) of the company grew 14% in Q4 FY22 versus 10% in the same period last year.?

More about Q4 Results of Tata Consumer Products

Tata Consumer’s volume grew 3% in the India beverages business. And it registered a marginal decline in the case of India foods business. US Coffee and International Tea business segments registered a volume growth of 3% and 5% respectively during the recent March quarter.

The company announced a dividend of Rs 6.05 per share.?

Business segment updates of Tata Consumer Results

• India business which includes beverages and foods registered a growth of 6% y-o-y during the March quarter FY22 to Rs 1954 crores.?
• India beverages business revenue fell 4% y-o-y during the recent March quarter but the foods business registered a growth of 15% y-o-y.
• International business registered a marginal growth of 1% y-o-y during the same period to Rs 890 crore.?
• Tata Coffee segment revenue for the quarter grew 7% y-o-y led by coffee plantations & the extractions business in Vietnam.
• The company’s non-branded business registered a growth of 6% y-o-y to Rs 345 crore.?

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Other points in Tata Consumer Quarterly Results Q4

• During the year, Tata Consumer increased its distributors by 25% and it now stands at over 2000 (over 8000 distributors in rural and semi-urban regions).?
• As per the company’s management, in FY22 the foods business has seen good volume growth, driven by both Salt and Sampann. But in terms of margins, the management expects the cost pressure to continue for a while.?

Management comments

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said that the company dynamically managed the P&L to expand the EBITDA margin. The company continued increasing the A&P in India business and investing in new businesses to accelerate future growth.?

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Research Analyst: Bavadharini KS