Tata Global Beverages today reported a 65.3% slide in consolidated net profit at Rs 62.45% for the three months to September, notwithstanding a five percent increase in revenues.
The company attributed the steep fall in net profit to a Rs 100-crore income from sale of property in the year-ago period. The company had logged Rs 180 crore net profit in September quarter last fiscal.
The lower profit is due to the Rs 100 crore exceptional gains from sale of property in the corresponding quarter last fiscal, Tata Global Beverages Chief Financial Officer L Krishna Kumar said.
He said that the consolidated income from operations during the quarter rose five percent to Rs 2,022 crore, and attributed the same to increased sales in Asia, Europe and the US. Tata Global Beverages runs the coffee, tea and water businesses, besides Tata Group's JV with Starbucks.
He said tea and coffee segments performed well, adding that improvement in branded businesses more than offset the impact of lower crop available for sale in the plantation business as well as spends in new ventures.
The company, which is almost debt-free, had paid Rs 68.13 crore in taxes, down from Rs 72.03 crore. The company said taxes are mainly due to tax on higher quantum of dividend received from overseas subsidiaries, a substantial part of which can be offset against dividend distribution tax.
During the quarter, its tea division, Tata Tea launched its Acti Green variant of green tea in the country. Its British arm Tetley continues to retain leadership in England's high growth, specialty tea categories.
During the quarter, the company entered the premium black tea segment in Australia with the launch of Tetley Tea Master's Selection, a range of single origin teas. In the water segment, the Himalayan natural mineral water was launched in Mumbai and Delhi in a sparkling variant.
Tata Water Plus and Tata Gluco Plus expanded reach to Maharashtra, Gujarat and Uttar Pradesh. Tata Starbucks, the joint venture between Tata Global Beverages and Starbucks, has entered Hyderabad taking its store count to 59 spread across Mumbai, Delhi, Bangalore, Pune, Chennai and Hyderabad.
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