Tata Consumer Products Limited (TCPL) has reported a robust performance for the second quarter, with significant growth in both revenue and profit. The company's strategic focus on its branded business and operational efficiency has contributed to this strong showing.

Revenue Growth

TCPL's consolidated revenue from operations for Q2 stood at ₹3,595.00 crores, marking an impressive 18% increase compared to the same quarter of the previous year. This growth was driven by strong performances across various business segments.

Profit Performance

The company's standalone net profit grew 28% year-on-year to ₹285.00 crore for the quarter ending September 30.

Segment-wise Performance

• International Business: Revenue grew 9% in constant currency terms
• Starbucks Joint Venture: Achieved 8% revenue growth with 492 stores across 80 cities

GST Transition Impact

Tata Consumer Products managing director Sunil D'Souza reported that three brands - Capital Foods, Organic India, and Tata Soulfull - experienced sales impact during the GST rate cut transition phase, with business disruption exceeding expectations. The company had been achieving decent double-digit growth before the GST transition.

• New GST rates were implemented from September 22 following the August 15 announcement
• Capital Foods sales were particularly affected in modern trade during September
• The ready-to-drink business remained unimpacted due to its impulse consumption nature

Brand Performance

Management Commentary

Sunil D'Souza, Managing Director and CEO of Tata Consumer Products, commented on the GST transition impact and overall performance. The company remains focused on navigating the challenges posed by the GST rate changes while maintaining growth momentum across its diverse portfolio.

Outlook

While TCPL has shown strong growth, the company is addressing the short-term impacts of the GST transition on specific brands. The management continues to focus on innovation, brand building, and operational efficiency to maintain growth momentum and improve profitability across all segments.

Investors and analysts will be closely watching TCPL's performance in the coming quarters, particularly its ability to manage the GST transition effects and maintain growth in various business segments. The company's diverse portfolio and strong market position in both domestic and international markets position it well for continued growth, despite temporary challenges in certain brand segments.

Tata Consumer Products Limited (TCPL) has recently undergone several significant corporate actions and regulatory updates, highlighting the company's commitment to transparency and strategic growth.

Shareholder Approval for Material Related Party Transactions

TCPL recently conducted a postal ballot through remote e-voting, which concluded on October 23. The primary agenda was to seek approval for Material Related Party Transactions with Capital Foods Private Limited. The resolution, which required ordinary majority, was passed with overwhelming support from shareholders.

Voting Results:

The approval rate of 99.99% indicates significant shareholder confidence in the company's strategic decisions regarding related party transactions.

Credit Rating Reaffirmation and Withdrawal

CARE Ratings has reaffirmed TCPL's short-term instruments rating at CARE A1+ for Rs. 1,500 crores. This rating suggests a strong degree of safety regarding timely payment of financial obligations and carries the lowest credit risk. Simultaneously, CARE Ratings has withdrawn ratings for Rs. 3,500 crores worth of commercial papers.

Regulatory Compliance and Penalties

The company faced a Rs. 57,479 penalty for moving goods under an expired e-waybill, highlighting the importance of maintaining strict compliance with regulatory requirements in logistics operations.

Key Personnel Changes

TCPL has undergone some changes in its leadership:

• Company Secretary Neelabja Chakrabarty has resigned.
• Independent directors Bharat Puri and Shikha Sharma have been re-appointed for second five-year terms.

Capital Structure and Equity

The company has made the following changes to its capital structure:

• Allotted 4,450 equity shares under its employee stock option scheme.
• Increased paid-up capital to Rs. 98.94 crores.
• Completed a rights issue of Rs. 2,997.77 crores, with proceeds used for repaying commercial papers and general corporate purposes.

Environmental, Social, and Governance (ESG) Rating

CRISIL has assigned an ESG rating of 61 to TCPL, placing it in the 'Strong' category. This rating is based on public data and reflects the company's commitment to sustainable business practices.

These corporate actions and updates demonstrate Tata Consumer Products Limited's focus on strategic growth, corporate governance, and sustainability.