Tata Global Beverages Q1 net up 44% at Rs 112 cr
Mumbai: Tata Global Beverages Thursday said its consolidated profit soared 43.69 percent to Rs 111.63 crore in the quarter ended June 30, 2013 on the back of exceptional income and effective cost measures.
The company had reported a profit of Rs 77.69 crore for the quarter ended on June 30, 2012.
"The cost measures have yielded benefits. Even though the topline has increased by 5 percent, the operating performance has been higher by 15 percent. We had some exceptional income of Rs 20 crore. All this has contributed to 44 percent increase in bottom line," Tata Global Beverages Chief Financial Officer L Krishnakumar told PTI here.
During the quarter under review, the company's total income rose to Rs 1,813.46 crore from Rs 1,725.10 crore in corresponding period an year ago.
The company said the profit included Rs 20 crore from the sale of assets.
"We had some profit on sale from some shares. We divested part of our stake in our plantation holding in Sri Lanka to one of our strategic partners," he said while explaining the reason for the exceptional income.
The overseas business generates two-thirds of the company's revenues, but Krishnakumar said the rupee decline did not have any favourable impact on the profit.
"In this quarter there is hardly any impact on our result because of the rupee depreciation. Overall the rupee depreciation has a favourable impact for us because more than two-third of our revenue comes from outside India. We will see the impact in the coming quarter," he said.
Commenting on the result, company's Managing Director and CEO Harish Bhat said, "We are happy to report steady growth in a very competitive global market. Growth trends have been quite different across continents, with Europe presenting the most challenging environment."
Bhat said the company will continue to focus on product innovations in tea, coffee and water.
"We will also invest behind our strong portfolio of brands, including Tetley, Tata Tea, Eight O'Clock Coffee, Tata Water Plus and Himalayan water," he said.
On the company's expansion plans, Krishnakumar said, "We are looking at expansions within our existing business and we are also looking at acquisitions. As of now, we have a strong balance sheet and we have we the capacity to fund the plans internally."
Asked about the company's water portfolio, he said, "This quarter has been particularly strong for the water business, which grew by over 50 percent in volume. We have seen very significant increases in volume for Himalayan water.
"Tata Water Plus in Tamil Nadu and Andhra Pradesh has seen significant volume increases. We need to ramp up the business to see profitability. We will need two years before we become profitable."