Q2 FY25 P&L Performance Summary
- Consolidated revenue grew 13% year-over-year (YoY) to Rs 4,214 crores, with a 12% increase in constant currency terms. The India business, comprising 70% of total branded business revenue, grew 15% overall but only 2% organically. This suggests that growth in the India business was primarily driven by acquisitions.
- Group net profit (GNP) before exceptional items grew 3% YoY to Rs 388 crores. This is a slower growth rate than the 11% YoY increase in EBITDA to Rs 629 crores. The slower growth in net profit is attributed to higher interest costs and amortization due to recent acquisitions.
- Profitability in the international business (29% of branded revenue) improved significantly, with profit growing 53% YoY. Growth businesses, excluding recent acquisitions, grew organically by 15%.
- EBITDA margin for the quarter contracted 30 basis points to 14.9%, driven by higher input costs in the India tea business. This is a reversal of the 30 basis point margin expansion observed in the first half of the fiscal year.
- Standalone net profit for Q2 FY25 declined 14% YoY to Rs 223 crores. This is likely due to the higher exceptional costs incurred in the quarter.
Overall, the latest quarter results show a mixed picture. While topline growth remains strong, driven by acquisitions and international business performance, profitability has weakened due to margin contraction in the India business.
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