Tata Consumer drops as margin shrink to 13.6% in Q4 FY25; Q4 PAT climbs 52% YoY
Tata Consumer Products declined 1.57% to Rs 1,132.80 after the company's EBITDA margin narrowed by 250 bps to 13.6% in Q4 FY25 as against 16.1% in Q4 FY24, driven by higher input cost in India and international businesses.
EBITDA margin was 14.2% in FY25, down 110 bps, primarily impacted by tea cost inflation in India.
The company reported a 52.06% jump in consolidated net profit to Rs 407.07 crore in Q4 FY25 as compared with Rs 267.71 crore in Q4 FY24. Group net profit jumped 59.19% to Rs 344.85 crore in Q4 FY25 as compared with Rs 216.63 crore in Q4 FY24.
Revenue from operations jumped 17.35% to Rs 4,608.22 crore in Q4 FY25 as compared with Rs 3926.94 crore in Q4 FY24.
Profit before exceptional item and tax (PBIT) declined 31.07% YoY to Rs 278.59 crore in Q4 FY25. Exceptional item stood at Rs 80.20 crore in Q4 FY25. Exceptional for the current quarter represents fair value gains of Rs 120 crore on re-measurement of contingent consideration, asset write-down of Rs 39 crore and cost relating to business restructure & reorganization of Rs 1 crore.
Consolidated EBITDA was at Rs 625 crore in the fourth quarter of FY25, down 1% as compared with Rs 631 crore, driven by higher input costs in the India and international businesses. EBITDA margin narrowed to 13.6% in Q4 FY25 as against 16.1% in Q4 FY24.
For the quarter, India Beverages business revenue grew 9% (excluding Organic India). Underlying Volume Growth (UVG) for India Branded Business (excluding acquisitions) was 5.9% for the quarter.
The India Foods business revenue grew 27% during the quarter (+17% excluding Capital Foods). Salt revenue grew 13%, with value-added salt portfolio growing 31% during the quarter. Tata Sampann portfolio continued its strong momentum and grew 30% for the quarter.
The companys growth businesses (Tata Sampann, RTD, Tata Soulfull, Capital Foods, Organic India) grew 66% during the Quarter (24% organic). Ecommerce channel grew 66% and Modern Trade recorded 26% growth in the quarter, (excluding Capital Foods and Organic India).
For the quarter, the International business revenue grew 5% with FY25 growth at 7% (excluding international business of Capital Foods and Organic India)
Starbucks opened 6 new stores during the quarter and entered into 6 new cities.
On financial year basis, the companys consolidated net profit jumped 11.14% to Rs 1278.47 crore in QFY25 as compared with Rs 1150.33 crore in FY24. Revenue from operations increased 15.87% to Rs 17,618.30 crore in FY25 as against 15,205.85 crore in FY24.
Starbucks added 58 net new stores were added in FY25. This brings the total number of stores to 479 across 80 cities.
Sunil DSouza, managing director & CEO of Tata Consumer Products, said, During the year, we recorded growth in our core businesses of India tea and salt in addition to driving strong growth in Tata Sampann and Tata Soulfull. While the RTD business was impacted in the earlier part of the year, we have seen a strong rebound as we exit the year. Our recent acquisitions- Capital Foods and Organic India performed well, and we are accelerating growth momentum through innovation and expansion into new channels of Food Services and Pharma.
In India, we continued to strengthen our Sales & Distribution infrastructure and completed rollout of a next gen Go-to-Market platform. Channels of the future i.e. Ecommerce and Modern trade continue to fuel growth momentum. We maintained momentum in our innovation agenda, with several product launches across categories, focusing on Health & Wellness, Convenience and Premiumization. We launched 41 new products during the year and our innovation to sales ratio was 5.2%. Overall, despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward.
Meanwhile, the companys board has recommended a dividend of Rs. 8.25 per equity share of Re. 1 each for FY25, if approved by the shareholders at the ensuing 62nd Annual General Meeting, will be paid on or after June 21, 2025.
Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The companys portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
29 minutes ago
- Time of India
Free water may soon be only for ‘poor' city areas
New Delhi: Delhi govt is reviewing AAP govt's flagship free water scheme, which provides 20,000 litres of water each month to each household, highly placed govt sources said. The subsidy may soon be available only in low-income family areas, they said. The move is being considered for streamlining resource allocation and reducing the financial burden on Delhi Jal Board . If this comes through, residents of relatively affluent areas will have to pay for water usage based on actual billing. AAP govt had announced the free water scheme in Delhi in Jan 2014 for all households with functional water meters. Consumers who used more than 20,000 litres a month were billed according to the regular water tariff. A senior official said govt wanted to give subsidy benefits only to the needy and deny it to those who could easily afford it, with the aim of reducing DJB's losses. The board's losses had increased from Rs 344 crore in 2019-'20 to Rs 1,196.2 crore in 2021-'22, while its debt was more than Rs 73,000 crore. The losses have mounted since then. The sources said that while a final decision was yet to be taken, the exercise to determine low-income areas would rely on MCD's colony classifications for paying property tax. Delhi's residential areas are included in categories 'A' to 'H'. 'A' represents affluent neighbourhoods; 'H' denotes low-income areas. A senior official said that the scheme could be devised in such a way that upscale colonies might not receive subsidies at all while the less privileged ones would qualify for the benefit. The water utility might include additional criteria, such as property dimensions, in its assessment. However, for this to happen, DJB needs to fix its billing system. "The company that looks after the billing system has said it doesn't want to work with govt anymore. So, we are in the process of engaging a new company after which a final decision will be taken," said a source. In 2019, AAP govt had told the Delhi assembly that around 20,000 litres of free water was provided to each household each month by using nearly Rs 400 crore, benefiting 5.3 lakh consumers. This was in response to a monitoring committee telling National Green Tribunal that the scheme was being misused by several housing societies. "We have seen people installing multiple water meters in a house going by the number of floors so that they can use free water," said an official. "Some even wash their cars using potable water, which is a waste of limited resources." As of now, if more than 20,000 litres and up to 30,000 litres is consumed, Rs 220 is levied as service charge and Rs 26 charged per kilolitre. Those consuming more than 30,000 litres have to pay Rs 293 as service charge and Rs 44 per kilolitre. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Deccan Herald
30 minutes ago
- Deccan Herald
Centre eases rules for buying scientific equipment, consumables by R&D institutes
The financial limits for procuring goods using the limited tender enquiry (LTE) and advertised tender enquiry have been increased to Rs 1 crore from the existing Rs 50 lakh.
News18
31 minutes ago
- News18
MSRDC Proposes 10-Lane Upgrade For Mumbai-Pune Expressway To Ease Growing Traffic
Last Updated: The total estimated cost for the entire widening project is Rs 14,260 crore, with construction costs alone around Rs 8,440 crore The Maharashtra State Road Development Corporation (MSRDC) has announced a major upgrade to the Mumbai-Pune Expressway, proposing to expand it into a 10-lane superhighway. The move comes as a long-term solution to tackle increasing congestion on one of India's busiest and most expensive expressways. 'This is an upgrade from our earlier proposal to make it an eight-lane facility. The latest plan will cost around Rs 1,420 crore," said Anilkumar Gaikwad, MSRDC Vice-Chairman and Managing Director, on Friday. Gaikwad told The Times of India that the Detailed Project Report (DPR) is being finalised and will be submitted to the state government for approval. The Mumbai-Pune Expressway, India's first and oldest access-controlled expressway, was inaugurated in 2002 and stretches 94.6 km. Built by the MSRDC at an initial cost of about Rs 1.63 lakh crore, the expressway connects Mumbai with Pune — a key educational and industrial hub in Maharashtra. Currently, the expressway sees around 65,000 vehicles on weekdays and over 1 lakh on weekends. With traffic volume growing by nearly 5–6% each year, MSRDC believes that expanding the corridor is essential to keep pace with demand. Presently, a trip between the two cities takes about two hours under normal conditions, but weekend congestion often extends travel time by an hour. The proposed expansion is expected to reduce this delay significantly, offering smoother travel even during peak periods. The total estimated cost for the entire widening project is Rs 14,260 crore, with construction costs alone around Rs 8,440 crore. Interestingly, MSRDC plans to fund the project through toll collections instead of relying on government funds. 'We will bank on toll collection," Gaikwad said, adding that the financing model — either Build-Operate-Transfer (BOT) or annuity — will be decided later. The current toll agreement is valid until 2045, and MSRDC may seek an extension if the expansion is approved. If implemented, the 10-lane upgrade could transform the expressway into a faster and more efficient route, easing pressure on one of India's most vital road links. First Published:
