Tata Consumer Products Ltd. witnessed a decline by 1.16 per cent in its stocks despite the company reporting strong financial results for Q1 FY24 in its domestic business segment.
In the June quarter, the company witnessed significant growth in its consolidated net profit, surging by 42 per cent to ₹316 crore compared to ₹255 crore in the same quarter last year. The company also reported an 18 per cent increase from ₹268 crore in the preceding March quarter. Aided by robust domestic demand, the company’s revenue from operations rose by 12.47 per cent to ₹3,741 crore in the June quarter, compared to ₹3,326 crore in the previous year.
The company’s branded business segment within India experienced remarkable growth, with domestic business revenue reaching ₹2,477.9 crores, showing a significant 15.5 per cent y-o-y rise and a 10.3 per cent q-o-q increase. This growth was attributed to the company’s market share gains in the domestic salt category and sustainable momentum for its premium brand, Starbucks.
Anushi Vakharia, a Research Analyst at StoxBox, said, “Tata Consumers Products Ltd. reported a decent performance in Q1FY24 led by sustained growth from its domestic business and the price hikes that the company had taken in its international business earlier whose effects came in this quarter. However, going forward the company’s focus on prioritizing premiumization alongside growing volumes in the premium segment will drive the growth. For the forthcoming quarters, we remain optimistic about the company’s increasing distribution reach and green shoots in rural recovery will aid its domestic business growth. At the same time, we’ll be watchful of the headwinds in its International coffee business.”
The share price were down by 1.16 per cent to ₹863 at 9:27 a.m. on BSE.