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Tata Tea Ltd (TGBL)

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Friday 29 January, 2010

Tata Tea Ltd

3rd Quarter Results

RNS Number : 3283G
Tata Tea Limited
29 January 2010
 



Audited Financial Results for three months ended December 31, 2009 

Rs in Lakhs


Three months ended
December 31

Nine months ended
December 31 

Year ended March 31

2009

2008

2009

2008

2009

Net Sales / Income from Operations

44744

37875

128960

101161

136153

Other Operating Income 

317

400

686

1043

1772

Total Operating Income 

45061

38275

129646

102204

137925

(a) (Increase)/Decrease in stock in trade and work in progress

(415)

(276)

301

746

(1867)

(b) Consumption of Raw Materials

26264

22134

74538

57087

78599

(c) Purchase of Traded Goods 

87

172

108

440

448

(d) Employees Cost

1732

1976

6343

6135

9175

(e) Advertisement & Sales Charges 

4982

2754

10615

6185

9234

(f) Depreciation & Amortization 

325

288

917

791

1065

(g) Other Expenditure

7667

6873

22998

19208

27085

Total Expenditure

40642

33921

115820

90592

123739

Profit from Operations before Other Income, Interest & Exceptional Items

4419

4354

13826

11612

14186

Other Income - Income from Investments(Net)

2074

4519

6922

10375

14539

Profit Before Interest & Exceptional Items 

6493

8873

20748

21987

28725

Interest (Net) 

1176

1721

3509

3390

4860

Profit after Interest but before exceptional items

5317

7152

17239

18597

23865

Exceptional Income / (Expenditure) (Net)

(219)

(219)

24114

(144)

(959)

Profit before Tax

5098

6933

41353

18453

22906

Tax Expense 

(a) Current Tax 

1452

2070

7853

5584

7203

(b) Deferred Tax 

(29)

(17)

(275)

(261)

(403)

(c) Fringe Benefit Tax

-

50

-

150

200

Profit after Tax

3675

4830

33775

12980

15906

Paid up Equity Share Capital (face value of Rs 10 each)

6184

6184

6184

6184

6184

Reserves excluding Revaluation Reserve

-

-

-

-

171561

Earnings per share(Basic & diluted)(Not annualised)-Rs

5.94

7.81

54.62

20.99

25.72

Aggregate of Public Shareholding

- Number of Shares

40029719

40021538

40029719

40021538

39999626

- Percentage of Share holding

64.73%

64.72%

64.73%

64.72%

64.68%

Promoters and Promoters Group Shareholding

(a) Pledged/ Encumbered

 

 

 

 

 

- Number of shares

7500000

 

7500000

 

9500000

- Percentage of Shares (as a percentage of the total shareholding of the promoter and promoter group)

34.39%

 

34.39%

 

43.50%

- Percentage of Shares (as a percentage of the total share capital of the Company)

12.13%

 

12.13%

 

15.36%

(b) Non Encumbered

 

 

 

 

 

- Number of shares

14310138

 

14310138

 

12340231

- Percentage of Shares (as a percentage of the total shareholding of the promoter and promoter group)

65.61%

 

65.61%

 

56.50%

- Percentage of Shares (as a percentage of the total share capital of the Company)

23.14%

 

23.14%

 

19.96%

 

Notes: 

1. Total operating income for the quarter at Rs 450.61 crores increased by 18%, driven by strong performance of the Company's branded tea operations. 

2. Profit from Operations before other income, interest and exceptional items at Rs 44.19 crores increased from the corresponding quarter of the previous year due to improvement in branded tea operations, partly offset by hardening commodity costs, increase in advertising & selling costs driven by higher level of promotion and increased investment in brand building and new product development. 

3. Investment Income of the current quarter is lower than the corresponding quarter of the previous year due to higher dividend income received during the previous period. Consequently, the Profit before tax of the current quarter at Rs. 50.98 crores is lower than the corresponding quarter of the previous year at Rs. 69.33 crores.

4. Exceptional items for the nine months ended December 31,2009 include profit arising out of sale of equity shares of Rallis India Limited amounting to Rs 247.72 crores net of amortization of amounts incurred on Employee Separation Scheme of Rs 6.58 crores. Exceptional Items for the previous year's corresponding period includes profit on sale of Long Term Investments net of amortization of amounts incurred on Employee Separation Scheme.

5. The company, during the quarter, has increased its stake in its subsidiary Mount Everest Mineral Water Limited from 40.27% to 40.92%.

6. As the Company's activity falls within a single business segment, viz "Buying / Blending and Sale of tea in bulk and value added form" the disclosure requirements of Accounting Standard (AS-17) on "Segment Reporting", notified by the Companies (Accounting Standards) Rules 2006, are not applicable. 

7. The Company did not have any investor complaint pending as on October 01, 2009. Three investors' complaints were received during the three months ended December 31, 2009 and two were resolved during the period. There was one investor complaint pending resolution as on December 31, 2009.

8. Previous period's figures have been re-arranged to the extent necessary, to conform to current period's figures. 

9. The aforementioned results were reviewed by the Audit Committee of the Board on January 27, 2010 and taken on record by the Board of Directors at its Meeting held on January 28, 2010. The statutory auditors of the company have audited these results.

Mumbai, January 28, 2010 

R K Krishna Kumar 
(Vice Chairman) 




 

 

 


Notes: 

1. Operating income for the quarter at Rs 1549 crores has increased by 21% as compared to the corresponding quarter of the previous year due to strong branded performance aided by improved price realization in key markets which has offset the increase in commodity costs. The operating income includes the performance of the Russian Beverage company in which a 51% stake was acquired through a subsidiary during the quarter ended 30th September 2009. 

2. Profit before exceptional items for the quarter at Rs 165 crores (Operating Profit) has increased by 17% as compared to the corresponding quarter of the previous year due to improved operating performance, and lower net interest costs. During the quarter, there has been increased investment behind advertisement and promotional support for the brands, and new product initiatives. 

3. During the quarter, consequent to exchange rate movement, there is a unrealized loss on translation of short term foreign currency financial assets / options held by an overseas subsidiary whereas in the corresponding quarter of the previous year as well as the year ending 31 March 2009, favourable exchange rate movements had resulted in significant unrealized gains.

4. Other Exceptional items for the quarter comprises of: 

(a) Reorganization costs of Rs 1 crore relating to restructuring of business.

(b) Amortization of amounts incurred on Employee Separation Scheme amounting to Rs 2 crores


In the corresponding quarter of the previous year, other exceptional expenditure comprised of reorganization costs and amortization of amounts incurred on Employee Separation schemes.

5. During the quarter, the Company increased its stake in one of its subsidiaries, Mount Everest Mineral Water Limited (MEMWL), from 40.27% to 40.92%.

6. Earnings per share (EPS) (basic and diluted- not annualised) for the quarter ended December 31, 2009 of Rs. 14.91 is lower than Rs 64.06 reported for the corresponding quarter of the previous year, due to the impact of exceptional items. Net of the impact of exceptional items the EPS (basic and diluted - not annualised) for the current quarter is Rs. 15.30 as compared to Rs 12.03 for the corresponding quarter of the previous year, reflecting the improved performance.

7. The share of profit / (loss) in Estate Management Services Limited, Sri Lanka, an associate company, have not been included in the results of the quarter, as the same is not yet available. This is, however, estimated not to have a material impact on the results of the Group for the quarter.

8.The major part of the Company's business arises from operations outside India and through its subsidiaries. In view of this the company has opted to publish only consolidated results for this quarter as permitted under SEBI guidelines. The standalone results shall be available on the Company's website as well as on the website of the stock exchanges where the Company's shares are listed. The Total Operating Income, Net Profit after Tax and Earnings per share of the Company's standalone financial results are given below: 

Rs. in Crores

Three months Ended 31st December

Nine months ended 31st December

 

2009

2008

2009

2008

Total Operating Income 

451

383

1297

1022

Profit after Tax

37

48

338

130

Earnings per Share - Rs (Not Annualised) 

5.94

7.81

54.62

20.99



9. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's figures. 

10. The aforementioned results were reviewed by the Audit Committee of the Board on January 27, 2010 and subsequently taken on record by the Board of Directors at its Meeting held on January 28, 2010 The statutory auditors of the company have conducted limited review of these results.


Mumbai: January 28, 2010 

R K Krishna Kumar 
(Vice Chairman) 


 

  








  

Unaudited Consolidated Financial Results for the three months ended December 31, 2009


 

   Rs in  Lakhs


Three months ended
December 31 

Nine months ended
December 31

Audited 
Year ended March 31
 2009

2009

2008

     2009                  2008  

     

 

Net Sales / Income from Operations

154006

127751

421246

357168

484787

Other Operating Income 

917

593

3519

1628

2623

Total Operating Income 

154923

128344

424765

358796

487410

(a) (Increase)/Decrease in stock in trade and work in progress

806

(751)

(1938)

(2937)

(7169)

(b) Consumption of Raw Materials

53931

43786

149382

118465

162810

(c) Purchase of Traded Goods 

7269

4830

18921

14478

19637

(d) Employees Cost

15470

13701

45333

39787

55416

(e) Advertisement & sales carges 

27996

23181

72899

64851

88024

(f) Depreciation & Amortization (net of amount drawn from Revaluation Reserve) 

2611

2408

7573

6840

9869

(g) Other Expenditure

29861

25891

85647

76882

104130

Total Expenditure

137944

113046

377817

318366

432717

Profit from Operations before Other Income, Interest & Exceptional Items

16979

15298

46948

40430

54693

Other Income - Income from Investments (Net) 

507

320

3240

3251

3320

Profit Before Interest & Exceptional Items 

17486

15618

50188

43681

58013

Interest (Net) 

995

1545

2498

4171

5420

Profit after Interest but before exceptional items

16491

14073

47690

39510

52593

Notional Unrealized ( Loss)/ Gain on translation of foreign currency Assets options

(9)

58152

(13540)

79396

34769

Other Exceptional Income / (Expenditure) (Net)

(359)

(553)

16600

(1041)

38269

Profit / (Loss) before Tax

16123

71672

50750

117865

125631

Tax Expense 

(a) Current Tax 

5902

22076

14735

36678

43137

(b) Deferred Tax 

232

167

736

128

(997)

(c) Fringe Benefit Tax

0

76

0

222

301

Profit / (Loss) after Tax

9989

49353

35279

80837

83190

Share of Profit from Associates

1322

418

3253

3745

2493

Minority Interest

(2088)

(10159)

(2522)

(15625)

(15628)

Group Consolidated Net Profit / Loss 

9223

39612

36010

68957

70055

Paid up Equity Share Capital (face value of Rs 10 each)

6184

6184

6184

6184

6184

Reserves excluding Revaluation Reserve

-

-

-

-

351936

Earnings per share(Basic & diluted)(Not annualised)-Rs (Refer Note 6) 

14.91

64.06

58.23

111.51

113.28

Aggregate of Public Shareholding

- Number of Shares

40029719

40021538

40029719

40021538

39999626

- Percentage of Share holding

64.73%

64.72%

64.73%

64.72%

64.68%

Promoters and Promoters Group Shareholding

(a) Pledged/ Encumbered

 

 

 

 

 

- Number of shares

7500000

 

7500000

 

9500000

- Percentage of Shares (as a percentage of the total shareholding of the promoter and promoter group)

34.39%

 

34.39%

 

43.50%

- Percentage of Shares (as a percentage of the total share capital of the Company)

12.13%

 

12.13%

 

15.36%

(a) Non Encumbered

 

 

 

 

 

- Number of shares

14310138

 

14310138

 

12340231

- Percentage of Shares (as a percentage of the total shareholding of the promoter and promoter group)

65.61%

 

65.61%

 

56.50%

- Percentage of Shares (as a percentage of the total share capital of the Company)

23.14%

 

23.14%

 

19.96%


 

  

  

Unaudited Consolidated Segment wise Revenue, Results and Capital Employed, under 
Clause 41, of the Listing Agreement for the Three months ended Dec 31, 2009



 

(Rs. in Lakhs) 

 

Three months ended
December 31 

Nine months ended
December 31

Year Ended
March 31st 2009 Audited 

 

   2009                           2008

 

2009

2008

1. Segment Revenue

a) Tea

118426

101274

322132

280866

378515

b) Coffee & Other Produce 

35542

26280

99469

74778

104712

c) Others

937

779

3052

3122

4088

d) Unallocated 

18

11

112

30

95

Total Operating Income 

154923

128344

424765

358796

487410

2. Segment Results - Profit / (Loss)

a) Tea

14799

16226

43735

41226

52895

b) Coffee & Other Produce 

5917

3213

16734

9830

14663

b) Others 

(391)

(854)

(1262)

(2362)

(3233)

Total

20325

18585

59207

48694

64325

ADD / (Less) 

 

 

 

 


i) Interest(net)

(995)

(1545)

(2498)

(4171)

(5420)

ii) Notional Unrealised (Loss) / gain on translation on foreign currency assets / options 

(9)

58152

(13540)

79396

34769

iii) Other Un-allocable items and Investment Income net of Exceptional Income/ (Expenditure)

(3198)

(3520)

7581

(6054)

31957

Total Profit /( Loss) before Tax

16123

71672

50750

117865

125631

3. Capital Employed

a) Tea

322442

275172

322442

275172

279074

b) Coffee & Other Produce 

138875

148504

138875

148504

153233

c) Others 

2516

4185

2516

4185

2337

d) Unallocated including Investments 

65778

45056

65778

45056

32076

Total

529611

472917

529611

472917

466720


 

Notes: 

 

a. Business Segments: The internal business segmentation and the activities encompassed therein are as follows:
Tea : Cultivation & manufacture of black tea and instant tea, tea buying/ blending and sale of tea in bulk or value added form. 

Coffee and Other Produce : Growing of coffee, pepper and other plantation crops and conversion of coffee into value added products such as roast and ground coffee & instant coffee.

Others : Sale of natural Mineral Water , other minor crops and curing operations of coffee and trading of items required for coffee plantations. 

b. The segment wise revenue, results, capital employed figures relate to the respective amounts directly identifiable to each of the segments. Other Unallocable income / expenditure include income / expenditure incurred on common services at the corporate level, exceptional income/ expenditure and income from investments.

c. Previous years figures have been regrouped / rearranged, to the extent necessary, to conform to current periods figures.

Mumbai: January 28, 2010

R K Krishna Kumar 
(Vice Chairman) 


 

 

Financial Highlights

 

 

Three months ended
December 31 

Nine months ended
December 31

Year Ended
March 31st 2009 

 

2009

2008

2009

2008

 

Total Operating Income

1549.23

1283.44

4247.65

3587.96

4874.10

Profit before Exceptionals 

164.91

140.73

476.90

395.10

525.93

Exceptionals (net)

(3.68)

575.99

30.60

783.55

730.38

Net Profit Before Tax 

161.23

716.72

507.50

1178.65

1256.31

Net Profit after Tax

99.89

493.53

352.79

808.37

831.90

Earnings per Share - Rs* 

14.91

64.06

58.23

111.51

113.28

Earnings per Share (before Exceptionals) on Core Operations - Rs*

15.30

12.03

46.70

40.62

47.39

Dividend - Rs per share (Face Value Rs 10 per Share)

 

 

 

 

17.50


 






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