India's Tata Consumer posts quarterly profit jump on falling tea prices, strong consumer demand

Jan 27 (Reuters) - India's Tata Consumer Products TACN.NS posted a higher third-quarter profit on Tuesday, aided by falling tea prices and sweeping consumption tax cuts that increased demand for consumer goods.

The Tata group company's consolidated net profit rose 38% to 3.85 billion rupees ($41.96 million) for the quarter ended December 31, from 2.79 billion rupees a year earlier.

While analysts had expected a profit of 4.29 billion rupees, the company missed those estimates largely due to a one-time charge of 228.6 million rupees linked to asset write-offs and India's new labour codes.

Shares of the company rose 3.8% after the results.

Revenue also rose 15% to 51.12 billion rupees, above analysts' average estimate of 50.32 billion rupees.

Tea contributes significantly to the company's top line, and with prices having fallen 15% on-year after it peaked in June, cost pressures eased, said Elara Capital.

Revenue from the Tetley tea maker's Indian branded business grew 13%. International business grew 17.4% even as it came under margin pressure due to volatile coffee prices.

Tata Consumer has been attempting to grow its packaged foods segment - which it calls its "growth" segment and includes natural food brand Tata Sampann and millet-based food brand Tata Soulfull - as a hedge against commodity price fluctuations.

The segment grew by 29%, faster than the overall revenue growth of 15%.

($1 = 91.7512 Indian rupees)