MAM
Tata Global Beverages Q3-2014 ad spend at Rs 401 crore
BENGALURU: Tata Global Beverages Limited (TGBL) spent Rs 400.76 crore in Q3-2014 towards Advertisement and sales charges (Ad spend). This was the highest Ad spend by the company in the seven quarters staring with FY-2013 until Q3-2014. TGBL is the unifying entity of the Tata Group’s beverages interests under one umbrella. (Note : Rs 1 crore = Rs 100 Lakhs = Rs 10 million = Rs 100,00,000).
TGBL’s major brands include Tata Tea, Tetley, Good Earth, Jemca, Vitax, Eight O’Clock, Himalayan, Grand and Laager Roiboos. The company has signed joint ventures with the global coffee company and brand Starbucks and with Pepsico . TGBL’s JV with Pepsico is Nourishco. TGBL is the second largest Tea company in the world. (Unilever is the biggest tea company in the world and its 100 year old tea brand Lipton that is available in about 100 countries).
TGBL says that it’s ‘Starbucks-A Tata Alliance’ JV has expanded to 34 stores in the country during Q3-2014 with robust store profitability. Among the winning moments for the company in Q3-2014 were a strong branded tea topline sales performance versus previous year in a slowing market and a continued good performance by its coffee plantations. The company claims a 17 per cent top line growth across the India tea portfolio mainly due to value and volume increases despite decline in tea category. Various consumer promotions were undertaken by TGBL to drive sales growth during the quarter keeping in mind the competition’s aggressive promotions.
Let us look at the Total Net Income from Operations (Op Inc), Total Expense (Tot Exp), PAT and Ad Spend trends by the company from Q1-2013 to Q3-2014 (Note Q-o-q change figures for Q1-2013 with reference to Q4-2012 figures)
As mentioned above, the company’s Ad Spend in Q3-2014 was the highest over seven quarters in terms of money value at Rs 400.76 crore as well as in terms of percentage of Op Inc (19.26 per cent of Op Inc). During the immediate trailing quarter, TGBL’s Ad Spend was Rs 366.37 crore (18.95 per cent of Op Inc), while during Q3-2013, it was Rs 316.02 crore (16.5 per cent of Op Inc).
PAT for Q3-2014 at Rs 119.55 crore (5.75 per cent of Op Inc) was (-33.59) lower than the Rs 180.03 crore (9.31 per cent of Op Inc) in the immediate trailing quarter, but was 48.95 per cent higher than the Rs 80.26 crore (4.19 per cent of Op Inc) of a year ago quarter.
Overall, Figure A shows an upward linear trend for both PAT and Ad Spend. Given the fact that the company said that Q3-2014 was a slowing market and the aggressive moves by the competition, TGBL’s further Ad Spend should be healthy. Also, Figure B shows that Op Inc is also on an upward trend. During Q3-2014, the company reported the highest Op Inc over the seven quarters under consideration at Rs 2080.74 crore, up 7.62 per cent from the previous quarter’s Rs 1934.48 crore and 8.62 per cent more than the Rs 1951.56 crore of a year ago quarter.
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TGBL says that its Op Inc growth has been understated due to revenue model for pods and restructuring. Also, its operating EBIT reflects significantly higher advertising and promotion spends as well as investments in new initiatives.
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Figure C shows the Q-o-q percentage change in Op Inc, Tot Exp, PAT and Ad Exp.
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Over the nine month period ended December 31, 2013, the company’s group income at Rs 5827.68 per cent was 5.93 per cent higher than the Rs 5030.94 crore in the corresponding nine month period of last year. PAT at Rs 411.21 crore (7.06 per cent of Op Inc) for 9M-2014 was 48.46 per cent more than the Rs 276.99 crore (5.03 per cent of Op Inc) in 9M-2013. The company’s Ad spend during 9M-2014 at Rs 1054.75 crore (16.85 per cent of Op Inc) was 13.05 per cent more than the Rs 932.97 crore (16.56 per cent of Op Inc) in 9M-2013. Pease refer to Figures D and E for Op Inc, Tot Exp, PAT and Ad Spend details for HY-2013, HY-2014, 9M-2013, 9M-2014, FY 2012 and FY 2013. All the numbers across all parameters clearly indicate an improvement over the respective time periods.
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Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
