TCPL bets on new-age brands for double-digit growth

TCPL reported a 12 per cent year-on-year increase in consolidated revenue from operations to ₹5,349 crore for the June quarter. Net profit rose 29 per cent to ₹427 crore. The India branded business posted 13 per cent underlying volume growth. The international business grew 16 per cent on a reported basis.

The beverages business faced temporary headwinds during the quarter. D'Souza noted that a minor issue of LPG shortages impacted small restaurants and street-side vendors, including hot tea shops in the South. Overseas, an unusually warm June affected demand across key markets. "The US, UK and Canada were impacted, especially in the month of June, by the unusually warm summer," he said. Coffee continued to perform strongly, growing 24 per cent. The salt business delivered a strong performance despite calibrated price hikes taken during June.

D'Souza reaffirmed the company's long-term outlook, saying TCPL expects to continue delivering double-digit overall revenue growth despite a high base. "We will drive double-digit growth. There will be those odd quarters where we will have mid-teens. There will be those quarters where it will be low double-digits," he said. He described the runway for the company's growth businesses as "as long as you can imagine."