Tata consumer Q2 net profit up despite higher costs, weak tea demand

What happened: Tata Consumer reported double-digit revenue and profit growth in the September quarter even as tea volumes stayed flat and hot weather hurt its UK business. Key numbers: Consolidated revenue rose 14% to ₹5,661 crore; net profit grew 16% to ₹470 crore; Ebitda grew 18% to ₹794 crore. Why it matters: Commodity inflation, notably in salt, narrowed India margins, and the CFO said calibrated price increases have already been taken. The CEO said oil at $115 and swings in packaging, freight and fuel kept the company from its 17-20% Ebitda margin target in India food and beverage.

Tata Consumer reported double-digit revenue and profit growth in the September quarter even as tea volumes stayed flat and hot weather hurt its UK business.

Commodity inflation, notably in salt, narrowed India margins, and the CFO said calibrated price increases have already been taken. The CEO said oil at $115 and swings in packaging, freight and fuel kept the company from its 17-20% Ebitda margin target in India food and beverage.