Tata Consumer Products Limited (TCPL), uniting the food and beverage interests of the Tata Group, announced its quarterly results on August 4, 2020. The company posted a consolidated net profit of Rs 345.55 crore for Q1FY21, which increased by 81.78 per cent, as compared to Q1FY20 when it reported Rs 190.09 crore.
The company has acquired 50 per cent stake of PepsiCo India in NourishCo Beverages Ltd, making it a wholly-owned subsidiary with effect from May 18, 2020, and hence TCPL has shown a gain of Rs 84 crore.
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We have recorded good revenue and profit growth in Q1 due to increased demand in some categories, strong marketing campaigns and adopting new routes to reach the end consumer effectively, TCPL Managing Director & CEO Sunil D’Souza said.
TCPL, which continued to manufacture and supply essential food and beverage items in domestic and international markets in the COVID-19 times, said demand for products for in-home consumption was light, whereas business segments in out-of-home consumption were adversely impacted.
Its profit was also impacted due to the impact of COVID-19 on operations of Tata Starbucks.
Tata Starbucks’ operations for Q1 were adversely impacted due to COVID-19. As of June 30th 2020, close to 60 per cent of the total 186 stores have reopened, it said.
After merging the consumer products business of Tata Chemicals with Tata Global Beverages, the company was renamed TCPL and now owns brands like TATA Salt, TATA Tea, Tetley, Eight O’ clock and Himalayan Water.
On the outlook, the company said the lockdown conditions will have an adverse impact on out-of-home segments and may cause supply constraints and result in commodity cost volatility.
TATA Consumer Products is currently trading at Rs 448, just Rs 1.75 less than the monthly high of Rs 449.75 on Tuesday closing.
In conclusion, TATA Consumers is hopeful that as lockdown restrictions eases in various states, its out-of-home business segement picks up pace and contribute significantly towards the total revenue of TATA Consumers.
You can view TATA Consumer’s FInancial report here.