On Wednesday, shares of Tata Consumer Products Ltd surged as much as 4.9 percent to hit an all-time high of Rs 471.80 before cooling off gains. It will be the fourth straight day of surge for the stock.
The rally comes after the company, known for its tea brands, reported an 81.78 percent rise in net profit at Rs 345.55 crore for the June ended quarter when compared to Rs 190.09 crore in the same period a year ago.
Tata Consumer Products Ltd, earlier known as Tata Global Beverages Ltd, saw its revenue from operations increase 13.44 percent to Rs 2,713.91 crore during the quarter under review as against Rs 2,392.36 crore in the corresponding period of the last fiscal.
For the quarter, revenue from operations is higher by 13 percent as compared to the corresponding quarter of the previous year led by volume and value growth in branded businesses both in India and International, TCPL said in an earning statement.
The company has acquired 50 percent stake of PepsiCo India in NourishCo Beverages Ltd, making it a wholly-owned subsidiary with effect from 18 May 2020 and hence TCPL has shown a gain of Rs 84 crore.
The exceptional item for the current quarter represents gain of Rs 84 crore on the conversion of a Joint Venture into a Subsidiary and costs relating to the business integration of foods business Rs 21 crore, it said.
Its total expenses were at Rs 2,310.44 crore as against Rs 2,117.69 crore, up 9.10 percent.
"We have recorded good revenue and profit growth in Q1 due to increased demand in some categories, strong marketing campaigns and adopting new routes to reach the end consumer effectively", TCPL MD & Chief Executive Sunil D'Souza said.
"The integration of our foods and beverages businesses in India is progressing well and will unlock significant synergy benefits," he said.
TCPL, which along with its subsidiaries continued to manufacture and supply essential food and beverage items in domestic and international markets in the COVID-19 times, said demand for products for in-home consumption was buoyant, whereas business segments in out-of-home consumption were adversely impacted.
Its profit was also impacted due to the impact of COVID-19 on operations of Tata Starbucks.
Tata Starbucks' operations for Q1 were adversely impacted due to COVID-19. As of 30 June 2020, close to 60 percent of the total 186 stores have reopened, it said.
After merging the consumer products business of Tata Chemicals with Tata Global Beverages, the company was renamed TCPL and now owns brands like TATA Salt, TATA Tea, Tetley, Eight O' clock and Himalayan Water.