After the closing bell on Tuesday, April 23rd, Tata Consumer unveiled its financial performance for the fourth quarter of the fiscal year 2023-24. The conglomerate disclosed a 22.5% decrease in its net profit for Q4FY24, amounting to ₹267.7 crore, as opposed to ₹345.6 crore in the corresponding period last year. Despite this dip, revenue from operations during the quarter witnessed a healthy 8.5% growth, reaching ₹3,927 crore compared to ₹3,619 crore in the previous year.
EBITDA Surges by 23% in Q4FY24
One of the notable highlights of Tata Consumer’s report was the robust growth in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). For the March quarter, EBITDA soared by 23% to ₹629.6 crore, a significant uptick from ₹511.7 crore recorded in the same period last year.
Key Business Highlights
Tata Consumer’s domestic packaged beverages segment saw a modest 2% revenue growth during the fourth quarter, underlining steady performance in this crucial sector. Furthermore, the company maintained its stronghold as a market leader in tea within the E-commerce channel, showcasing its resilience and adaptability in the evolving market landscape.
In fiscal year 2023-24, Tata Consumer witnessed remarkable success in the premium and sub-premium segments, which collectively contributed to over two-thirds of the total revenue from tea sales in India. This performance underscores the effectiveness of the company’s strategic focus on catering to diverse consumer preferences.
The international business segment of Tata Consumer Products experienced a commendable 7% year-on-year revenue growth during the quarter, signaling positive momentum in global markets.
Expansion Initiatives
During Q4FY24, Tata Consumer Products expanded its footprint in the retail space by adding 29 net new Tata Starbucks stores. Moreover, the company ventured into six new cities, thereby augmenting its total store count to 421 spread across 61 cities.
Dividend Declaration
In a significant move, Tata Consumer’s board proposed a final dividend of ₹7.75 per equity share of ₹1 each, representing an impressive 775% for the financial year 2023-24. This announcement reflects the company’s commitment to delivering value to its shareholders.
The proposed dividend is subject to approval by the members at the forthcoming 61st Annual General Meeting. If approved, it will be disbursed after the AGM and within 30 days of its declaration, as per the company’s statement.
Tata Consumer’s latest financial report showcases both challenges and successes, reaffirming its resilience and strategic vision in navigating dynamic market conditions.