Tata Global Q3 profit drops 29.53% to Rs 84.24 crore

Tata Global Beverages on Friday reported 29.53 per cent decline in consolidated net profit at Rs 84.24 crore for the quarter ended December 31, 2014, impacted by slow sales growth, tax credit taken for restructuring and currency fluctuations.

New Delhi: Tata Global Beverages on Friday reported 29.53 per cent decline in consolidated net profit at Rs 84.24 crore for the quarter ended December 31, 2014, impacted by slow sales growth, tax credit taken for restructuring and currency fluctuations.

The company had posted a consolidated net profit of Rs 119.55 crore for the same period of previous fiscal, Tata Global Beverages Ltd (TGBL) said in a statement.

Consolidated net sales during the quarter under review increased marginally 2.71 per cent to Rs 2,109.73 crore compared to Rs 2,053.91 crore during the same period in the previous fiscal.

TGBL's consolidated revenue from tea segment registered a marginal growth to Rs 1,587.28 in in the third quarter of FY2014-15 as against Rs 1,573.04 crore of the same quarter last fiscal.

However, revenue from coffee grew 9.52 per cent to Rs 538.14 crore during the quarter under review as against Rs 491.36 crore of the same period previous fiscal.

Revenue from other segments which include sale of water products and other business was Rs 18.47 crore during October-December quarter this fiscal.

Commenting on the performance TGBL Global Chief Financial Officer L Krishna Kumar said: "Profit after tax is lower because of the tax credit of Rs 46 crore, which the company has taken in the previous year for restructuring purpose".

TGBL's profit from ordinary activities before tax is at Rs 146 crore, he added.

Revenue of the company was also impacted by exchange rates and falling currencies such as Russian rouble, he said.

The company further said decrease in profit from operations is attributable to lower profit in the plantation business due to lower crop available for sale.

TGBL is expecting that some of its loss-making international ventures as in Eastern Europe would become profitable in the next quarter, Kumar said.

In India, the company would continue focusing on growing segments such as green tea, specialty teas. The company has over 30 per cent market share in green tea.

On the outlook, TGBL managing director and CEO Ajoy Misra said: "We remain committed to sustainable growth through innovation and strengthening our brands in key markets, in the face of a challenging market environment and economic volatility in some parts of the world".

Shares of TGBL settled at Rs 158.70 on the BSE, up 0.22 per cent from previous close.

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