New Delhi, Jul 23 (PTI) FMCG major Tata Consumer Products Ltd (TCPL) on Wednesday reported a 14.7 per cent increase in consolidated net profit to Rs 331.75 crore in the June quarter, led by growth from India business.
The company had posted a consolidated net profit of Rs 289.25 crore in the year-ago period, according to a regulatory filing from TCPL -- the Tata Group FMCG arm.
Its revenue from operations rose 9.8 per cent to Rs 4,778.91 crore during the quarter under review. It was at Rs 4,352.07 crore in the year-ago period.
The growth was led by India business, which was up 11 per cent. Core businesses of tea and salt had a very good quarter, supported by underlying volume gains, TCPL Group Chief Financial Officer Ashish Goenka told PTI in a post-results interaction.
In the June quarter, TCPL's overall branded business was up 10.6 per cent to Rs 4,270.9 crore. It was at Rs 3,861.51 crore in the corresponding quarter last fiscal year.
TCPL's branded businesses include tea, coffee, water and other various value-added businesses.
Its revenue from the branded business in India was up 11 per cent to Rs 3,125.7 crore in the June quarter.
"However, for us, RTD (ready-to-drink) got impacted by unseasonal rain, which has to be seen from the other beverages as well. Apart from higher competitive intensity in that category, the good news there is that we still had a volume growth of 3 per cent," he said.
TCPL's water business had a volume growth of 13 per cent.
However, its newly acquired businesses as Capital Foods and Organic India, faced challenges during the quarter.
"I think it had a decent quarter, but we could have done more. There were some transitional issues which impacted us this quarter. There were some capacity constraints in a few categories," said Goenka.
TCPL's India foods business revenue grew 14 per cent during the June quarter.
Moreover, TCPL also continued its growth from "channels of the future" as its sales from e-commerce channel, which includes quick commerce, grew 61 per cent, and modern trade recorded 21 per cent growth.
"Within e-commerce, quick commerce now has two-thirds share," he said, adding TCPL "will continue to leverage the growth of that channel and continue to participate in it."
TCPL's international branded business was up 9.44 per cent to Rs 1,145.20 crore.
"On the international side, business continues to grow in line with our expectations. The overall growth on an underlying basis was 5 per cent and within that, the US is coming back on growth," said Goenka.
Besides, TCPL's revenue from non-branded business was at Rs 535.76 crore, up 7.02 per cent during the quarter. This segment includes TCPL's plantation and extraction business of tea and coffee.
Total expenses of TCPL in the June quarter were at Rs 4,354.66 crore, up 10.9 per cent.
Tata Consumer's total income, which includes other income, was at Rs 4,820.08 crore, up 9.76 per cent.
Tata Starbucks -- a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation -- continued to expand its stores across metros as well as smaller cities. It added six new stores during the quarter.
This brings the total number of stores to 485 across 80 cities.
Commenting on the results, Managing Director & CEO Sunil D'Souza said, "We delivered a steady topline growth of 10 per cent in Q1 FY26, with double-digit net profit growth.
"During the quarter, we recorded double-digit growth in the core India business across both tea and salt, backed by volume growth. Tata Sampann continued its strong trajectory, with new launches and innovations performing well. However, unfavourable weather impacted volume growth in the RTD business," he said.
Shares of Tata Consumer Products Ltd on Wednesday settled at Rs 1,062.65, down 1.99 per cent on the BSE.