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Tata Consumer Products Ltd’s profit has increased marginally to ₹268 crore in the second quarter of the current fiscal compared to ₹257 crore in the corresponding quarter last year.
The company reported a 9.1 per cent on-year growth in consolidated revenue from operations to ₹3,033.1 crore during the period.
During the quarter ended September 30, the Group’s performance was not adversely impacted by the Covid pandemic, except for some businesses, in particular, those in out-of-home consumption sectors although there is an improving trend. “There can be future business uncertainties depending on developments in relation to the pandemic, which could include market closures, supply constraints and commodity cost volatility,” the company said.
For the quarter, the India Packaged Beverages business recorded a 10 per cent revenue growth, on an elevated base last year.
“There has been consistent progress in expanding our sales an distribution reach. Tata Consumer now has a direct reach of 1.1 million outlets, up from 0.5 million outlets in Sep’20 and is on track for a direct reach of 1.3 million outlets by FY22 exit. Rural reach has been further strengthened with 4000+ rural distributors on board,” the company said. E-commerce recorded 39 per cent growth YoY and contributed around 7 per cent of domestic sales.
Sunil D’Souza, Managing Director & CEO of Tata Consumer Products, said “Going forward, we will stay focused on driving growth in our core businesses while adding new levers of growth. While the worst of tea inflation seems to be behind us, we are now seeing inflationary trends in packaging and freight costs. We will address these by further strengthening operating efficiencies and driving net revenue management. We will continue to progress our transformation agenda while delivering profitable and sustainable growth.”