Tata Tea Q3 Group Net Profit Drops, Absent Of Year-Ago Gain

Friday, Tata Tea Ltd., the largest tea manufacturing company in India, reported a lower consolidated net profit for the third-quarter in the absence of a year-ago gain from the stock sale. However, on standalone basis, the company reported higher net profit for the quarter.

Consolidated Results

The Kolkata-based company posted third-quarter consolidated net profit of Rs.396.12 crore or Rs.64.06 per share, 69% lower than Rs.1,292.22 crore or Rs.208.96 per share in the third-quarter of 2007, which included a one-time gain of Rs.1,604.74 crore on sale of its stake in Energy Brands Inc.

The company said the previous period's figures have been rearranged to the extent necessary, to conform to the current period's figures. Therefore, the comparative figures have been restated to exclude North India Plantation Division and certain related adjustments effected to make them comparable with the current quarter.

The company said its recent quarter results included a one-time foreign exchange gain of Rs.580.41 crore on restatement of foreign currency deposits/loans, compared with Rs.38.25 crore in the prior-year quarter.

The company's quarterly consolidated revenue from operations increased 15% to Rs.1,300.86 crore from Rs.1,135.56 crore in the year-ago quarter, while other operating income totaled to Rs.5.93 crore, compared with Rs.8.07 crore in the prior year quarter.

During the quarter, revenue from Tea segment rose 12% to Rs.1,013.01 crore from Rs.902.20 core in the corresponding quarter last year, while revenue from Coffee & Other Produce amounted to Rs.285.59 crore, up 20% from Rs.238.94 crore in the year-ago quarter. Revenue from others were Rs.8.19 crore, compared with Rs.2.49 crores in the previous year quarter.

For the first nine months, Tata Tea's consolidated net profit fell 51% to Rs.689.57 crore from Rs.1,417.46 crore in the corresponding period last year. Total revenue grew 13% to Rs.3,647.99 crore from Rs.3,215.51 crore for the comparable period a year-ago.

Standalone Results

The company's third-quarter standalone net profit grew 10% to Rs.48.30 crore from Rs.43.78 crore in the third-quarter of 2007. Total revenue, including other operating income, increased 22% to Rs.382.75 crore from Rs.314.08 crore in the year-ago quarter.

For the Apr-Dec 2008 period, Tata Tea's standalone net profit rose 6% to Rs.129.80 crore from Rs.121.91 crore for the comparable period last year. Total revenue grew 16% to Rs.1,022.04 crore from Rs.878.41 crore for the comparable period a year-ago.

The company said its board has decided to relocate Managing Director, P.T. Singanporia to London, However, he will continue to be the company's Managing Director and will also be responsible for global manufacturing operations as well as buying and blending, supply chain and related activities for some regions.

At the BSE, Tata Tea closed Friday's trading at Rs.607.10, down by Rs.15.95 or 2.56% on a volume of around 49K shares.