Tata Consumer Q2 Results: Revenue Up 11%, Net Profit Drops 7% Due to One-Time Expenses
- ByStartupStory | November 1, 2023
Tata Consumer Products Ltd. reported an 11% increase in revenue for the second quarter, driven by the strong performance of its domestic food business. However, the company’s net profit declined by 7% compared to the previous year. The net profit for the quarter ended in September stood at Rs 363.92 crore, as disclosed in an exchange filing. This figure is in line with the consensus estimate of Rs 331.5 crore by analysts tracked by Bloomberg.
The decline in quarterly net profit can be attributed to a one-time expense and a lower share of profit from associates and joint ventures. The share of profit from associates during the July-September period was only Rs 4.74 crore, a significant decrease from the Rs 34.45 crore recorded in the previous year.
The reported quarter also included an exceptional item accounting for costs of Rs 15 crore, related to business restructure and reorganization.
Excluding exceptional items and tax, the net profit before such adjustments showed a 24% increase to reach Rs 375 crore. When exceptional items and tax are both excluded, the net profit stood at Rs 505 crore, reflecting a substantial 36% growth.
This growth was driven by strong performance in both the domestic and international businesses, despite increased investments in brands and improved performance in the non-branded business, as stated by the company.
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