Tata Global Q4 net plunges 36 pc to Rs 54 cr

Tata Global Beverages today said its consolidated net profit for the March quarter declined 36.4% to Rs 54.21 crore despite an 11% rise in sales.

The maker of Tetley and Tata tea had posted much higher net profit of Rs 85.24 crore during the same period previous fiscal on the back of profit on sale of shares. "We sold some of our shares last year and booked some profits. That was an exceptional item and we cannot expect it every year in our books," Tata Global Beverages chief financial officer L Krishnakumar told reporters here.

Net sales rose to Rs 1,724.11 crore in the fourth quarter, up from Rs 1,558.01 crore. For the full year, its net profit rose to Rs 356.14 crore, as against Rs 254.33 crore. "We have posted robust sales in the country and we are the market leader in terms of both value and volume.

Our market share in terms of volume is 19.6% and in terms of value is 21.3%. We also reduced our costs during the year," Tata Global Beverages managing director Percy Siganporia said. The company also attributed some of the increase in the operational income to the rupee depreciation that happened during the third quarter.

"The rupee depreciation during the year helped the topline with an impact of 3% out of the total of 10% increase for the year," Siganporia said. Net sales for the full year rose to Rs 6,585.26 crore, up from Rs 5,982.42 crore. On the outlook for price of tea, Siganporia said, "for the domestic market there is some sharpening of prices, but you will find that easing in three to four months. Generally the prices will be high this year compared to the previous year."

Shares of Tata Global Beverages today closed at Rs 108 on the BSE, down 1.03% from its previous close.