Tata Consumer Products Ltd has unveiled its impressive earnings for the fiscal fourth quarter, showcasing a remarkable profit of ₹344.85 crore. This marks a striking 59.19% increase from last year’s ₹216.63 crore for the same quarter, outpacing analysts’ expectations. The company’s operational revenue also saw a significant rise, amounting to ₹4608.22 crore, which is a 17.35% increase compared to the ₹3926.94 crore reported in Q4 of the previous fiscal year.

Earnings Performance Surpasses Expectations

According to a poll conducted by CNBC TV18, market experts had forecasted a profit of ₹305 crore for the fourth quarter, along with a revenue estimate of ₹4575 crore. Tata Consumer not only met but exceeded these predictions, demonstrating robust growth across its various business segments.

Dividend Announcement for Shareholders

In a recent regulatory update, the board of Tata Consumer proposed a dividend of ₹8.25 per equity share for the fiscal year 2024-25, translating to an impressive 825% payout. If approved during the 62nd Annual General Meeting, this dividend will be distributed on or after June 21, 2025, subject to tax deductions.

Strong Q4 Performance Across Business Segments

Branded and Non-Branded Revenue

Tata Consumer’s branded business showed remarkable revenue figures, totaling ₹4130.40 crore. Within this segment, the Indian operations contributed ₹2936.72 crore, while international markets added ₹1193.68 crore. Additionally, the non-branded business recorded a revenue of ₹500.55 crore in Q4.

Insights from Leadership

Sunil D’Souza, Managing Director and CEO of Tata Consumer Products, expressed optimism about the company’s performance: “We concluded the year with a robust quarter, building further momentum. Our topline grew by 17% this quarter, resulting in an overall fiscal year growth of 16%. This growth was broad-based across both domestic and international markets, aligning with established trends.”

Key Highlights from the India Business

• The Beverages division experienced a 9% revenue increase in the Indian market, excluding Organic India.
• The Ready-to-Drink (RTD) segment saw a 10% growth, bolstered by a 17% rise in volume.
• The Foods Business excelled, achieving a 27% revenue growth (or 17% without Capital Foods).
• Salt revenue increased by 13%, with the value-added salt portfolio enjoying a 31% growth.

Tata Sampann, a key product line, thrived with a 30% quarter growth, leading to an annual growth of 29%. Tata Soulfull also performed strongly, reporting a 32% increase.

International Business Expansion

The international segment recorded a 5% revenue increase, translating to a 7% growth for the fiscal year, excluding Capital Foods and Organic India. The integration of these acquisitions has opened new avenues for expansion beyond the core beverage offerings.

Growth in Tata Starbucks

In alignment with its store expansion strategy, Tata Consumer opened six new stores during the quarter, marking its presence in six additional cities. Over the entire fiscal year, the company added 58 net new stores, bringing the total to 479 across 80 cities, including the launch of its first drive-thru store in Bengaluru.

Looking Ahead

D’Souza emphasized, “We have successfully expanded our margins as anticipated. Our sales and distribution framework in India has been strengthened, and we completed the rollout of an advanced Go-to-Market platform. Emerging channels like E-commerce and Modern Trade are driving our growth. We launched 41 new products this year, achieving an innovation to sales ratio of 5.2%. Despite challenging market conditions, we remain committed to driving sustainable and profitable growth as we move forward.”

By focusing on innovation and strategic expansion, Tata Consumer Products Ltd is positioning itself for continued success in the fast-moving consumer goods sector.