Tata Consumer board approves dividend of Rs 7.75 per share

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Tata Consumer Products' board of directors on Tuesday recommended a dividend payment of Rs 7.75 per share for the year ended March 31, 2024.

The decision was taken in a board meeting held today to approve the company's January-March quarter earnings and the announcement was made after market hours.

Tata Consumer shares today ended at Rs 1173 on the NSE, up by Rs 0.80 or 0.07% from the Monday closing price.

The FMCG company reported a 19% fall in its consolidated net profit to Rs 217 crore for the quarter ended March 2024. It was Rs 269 crore in the last year period. Revenue from operations during the reporting period rose 8% year-on-year (YoY) to Rs 3,927 crore, compared with Rs 3,618 crore in the previous year's quarter.

The revenue growth was led by a strong performance in India business, which grew 10%. The consolidated EBITDA for the quarter stood at Rs 631 crore, up 22% YoY, and for the year at Rs 2323 crore, up 24% YoY.

For the quarter, the India Packaged Beverages business delivered 2% revenue growth. The company continued to retain market leadership in tea in the e-commerce channel.

Coffee continued its strong performance with a revenue growth of 45% for the quarter. In FY 24, premium and sub-premium segments outperformed the overall business and accounted for over two-thirds of India Tea revenue. Gold, Premium and Tetley green franchises delivered strong results.

For the quarter, the International business revenue grew 7% and 5% in constant currency terms. In the UK, the company saw strong share gains across all our major retail partners, during the quarter.

Tata Starbucks added 29 net new stores during the quarter and entered 6 new cities. FY24 saw the highest store addition at 95 stores.

The company said its premiumization agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio.

"Our growth businesses (Tata Sampann, RTD, Tata Soulfull, Tata SmartFoodz) continued their strong upward trajectory with a revenue growth of 40% in FY24," said Sunil D'Souza, MD and CEO, Tata Consumer.