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earnings | IST

Tata Consumer expects double-digit growth in India foods biz; sees tea prices normalising in 2 quarters

Tata Consumer posted its Q1FY22 earnings. Profit slipped while good recovery was seen in gross margins on a quarter-on-quarter (QoQ) basis. Sunil D'Souza, MD and CEO, Tata Consumer Products, discussed the performance with CNBC-TV18.

Tata Consumer posted its Q1FY22 earnings. Profit slipped while good recovery was seen in gross margins on a quarter-on-quarter (QoQ) basis. The company reported a decline of 42.05 percent in its consolidated net profit to Rs 200.24 crore for the first quarter ended June 2021, on account of one-time exceptional gains in the previous year. The company had registered a net profit of Rs 345.55 crore in the April-June quarter in the year-ago period. However, its revenue from operations in April-June 2021 jumped 10.85 percent to Rs 3,008.46 crore, compared to Rs 2,713.91 crore in the year-ago period. Sunil D'Souza, MD and CEO, Tata Consumer Products, discussed the performance with CNBC-TV18.
On India foods business, D’Souza said that he expects the momentum to continue. He also mentioned that he expects to see strong double-digit growth in India foods business. He said, “Salt – we have got 33-34 percent share and other players are still in low single digits. Also, the Sampann portfolio grew more than 20 percent in July,” he said.
On secular decline in tea prices, he said “Q2 of last year was the peak and after that it started coming down. Secular trend is downwards,” he said, while adding that he expects tea prices to come back to normalcy in two quarters. He further mentioned that the company is seeing moderation in tea costs in India.
“We will come out much stronger, given the fact that we will come out on a much stronger share, much stronger premium portfolio and much more better systems on execution in the market,” he stated.
Tea margins are expected to see sequential improvement on a QoQ basis.
“We are going to expand our portfolio both organically and inorganically,” he shared.
“Going forward, we aim to be a larger food and beverages (F&B) and larger fast moving consumer goods (FMCG) company,” he added.
(With inputs from PTI)
For the full interview, watch the accompanying video.