Tata Consumer Products Limited (TCPL) has delivered a robust performance in the second quarter, with significant growth across its business segments. The company's consolidated revenue from operations grew by 18% year-on-year to ₹4,966 crores, driven by strong performances in both its branded and non-branded businesses.

Key Highlights

• Consolidated revenue grew 18% (16% in constant currency terms) to ₹4,966 crores
• India business grew 18%, with the core business recording double-digit growth in both tea and salt
• International business delivered 9% constant currency growth
• Non-branded business grew 26% in constant currency terms
• Consolidated EBITDA stood at ₹675 crores, up 7% YoY
• Group Net Profit increased by 11% to ₹407 crores

Segment Performance

India Business

The India packaged beverages business revenue grew by 12%, with coffee continuing its strong trajectory, recording a 56% growth for the quarter. The Ready-to-Drink (RTD) business delivered a 25% revenue growth despite unseasonal rains and heightened competitive intensity.

The India Foods business revenue increased by 19%. Value-added salt portfolio performed well, growing 23% during the quarter. Tata Sampann portfolio continued its momentum, growing by 40% for the quarter.

International Business

The International business revenue grew by 9% in constant currency terms, primarily driven by strong coffee performance in the USA. Eight O'Clock coffee continued to gain market share within bags and K-Cups for the fourth consecutive quarter.

Non-Branded Business

The Non-Branded business, which includes plantation and extraction business for tea, coffee, and other produce, saw a significant growth of 26% in constant currency terms.

Innovation and Expansion

TCPL maintained a strong pace of innovation with 25 new product launches during the quarter across categories. Some notable launches include:

• Tata Tea Agni's category-first Energy tea with added caffeine in select markets
• Tata Sampann's gravy masala mixes and a range of unpolished millets
• Capital Foods' new products like Chings Chilli Oil, Korean Ramen, and Korean Kimchi noodles

Tata Starbucks

Tata Starbucks added 7 net new stores during the quarter, bringing the total number of stores to 492 across 80 cities. The joint venture also extended coffee experiential store formats in Mumbai, Hyderabad, and Chennai.

Management Commentary

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, commented on the results: "We delivered a strong topline growth of 18% in Q2, with steady net profit growth. This was the 2nd consecutive quarter of double-digit growth in the India core business across both tea and salt. Tata Sampann continued its growth momentum and launched several new products during the quarter. The RTD business recorded robust growth despite unfavourable weather conditions."

He further added, "We remain focused on building for the future with growth, innovation and consumer trust at the heart of everything we do."

Outlook

With its strong performance across segments and continued focus on innovation and expansion, Tata Consumer Products appears well-positioned for sustained growth. The company's ability to deliver robust results despite challenges such as unseasonal rains and heightened competition demonstrates its resilience and strong market position in the consumer products sector.

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.