India's Tata Consumer Products beats profit estimates on branded business growth
- Tata Salt maker’s consolidated net profit rises 21.5% to 4.19 billion Indian rupees in the March quarter
India’s Tata Consumer Products reported a bigger-than-expected quarterly profit on Friday, helped by strong growth at its core branded domestic business, which includes tea brands such as Tetley and Tata Tea.
The Tata Salt maker’s consolidated net profit rose 21.5% to 4.19 billion rupees ($44.35 million) in the March quarter, beating analysts’ estimates of 4.02 billion rupees, according to data compiled by LSEG.
After a prolonged urban-led slowdown, demand has started recovering in India, aided by tax cuts introduced last year aimed at boosting spending.
The company, which operates a joint venture with Starbucks in India, said fourth-quarter revenue grew 18% to 54.34 billion rupees, while expenses rose about 16%.
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Revenue at the consumer goods marker’s core branded domestic business was up 13.3%, driven by its tea portfolio as costs moderated sequentially, according to brokerage Elara Capital.
Meanwhile, peers Dabur and Britannia Industries have turned to price hikes to combat rising commodity prices linked to the Iran war. Higher raw material prices, fuelled by surging crude, are pressuring corporate margins across sectors.
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