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Tata Tea Ltd (TGBL)

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Friday 30 October, 2009

Tata Tea Ltd

Half Yearly Report

RNS Number : 6765B
Tata Tea Limited
30 October 2009
 







Tata Tea Limited

Registered Office: 1 Bishop Lefroy Road Kolkata - 700020

Audited Financial Results 

For three months ended September 30, 2009 

Rs Lakhs


Three months ended
September 30

Six months ended
September 30

Year ended March 31

2009

2008

2009

2008

2009

Net Sales / Income from Operations

42433

32055

84216

63286

136153

Other Operating Income 

203

377

369

643

1772

Total Operating Income 

42636

32432

84585

63929

137925

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

304

(627)

716

1022

(1867)

(b) Consumption of Raw Materials

24978

19372

48274

34953

78599

(c) Purchase of Traded Goods 

21

268

21

268

448

(d) Employees Cost

2238

2312

4611

4159

9175

(e) Depreciation & Amortization 

296

259

592

503

1065

(f) Other Expenditure

11775

8689

20964

15766

36319

Total Expenditure

39612

30273

75178

56671

123739

Profit from Operations before Other Income, Interest & Exceptional Items

3024

2159

9407

7258

14186

Other Income - Income from Investments(Net)

3601

4641

4848

5856

14539

Profit Before Interest & Exceptional Items 

6625

6800

14255

13114

28725

Interest (Net) 

1219

1030

2333

1669

4860

Profit after Interest but before exceptional items

5406

5770

11922

11445

23865

Exceptional Income / (Expenditure) (Net)

24553

295

24333

75

(959)

Profit before Tax

29959

6065

36255

11520

22906

Provision for Taxation

(a) Current

4289

1823

6401

3514

7203

(b) Deferred

(86)

(182)

(246)

(244)

(403)

(c) Fringe Benefit Tax

(48)

45

-

100

200

Profit after Tax

25804

4379

30100

8150

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

41.73

7.08

48.67

13.18

25.72

Debt Service Coverage Ratio (DSCR)

 

 

4.67

1.82

2.41

Interest Service Coverage Ratio (ISCR)

 

 

5.20

4.55

3.92

Aggregate of Public Shareholding

- Number of Shares

40039626

40021538

40039626

40021538

39999626

- Percentage of Share holding

64.75%

64.72%

64.75%

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)

34.40%

 

34.40%

 

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

14300231

 

14300231

 

12340231

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

65.60%

 

65.60%

 

56.50%

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

23.12%

 

23.12%

 

19.96%

Note:- DSCR = Earnings before Interest and Tax / Gross Interest and Principal repayment of long term loans during the period
ISCR = Earnings before Interest and Tax / Gross Interest 

 

             Notes: 

1.
Total operating income for the quarter at Rs 426.36 crores increased by 31%, driven by strong performance of the Company’s branded tea operations.
2.
Profit from Operations before other income, interest and exceptional items at Rs 30.24 crores increased by 40% from the corresponding quarter of the previous year attributable to improvement in branded tea operations, partly offset by hardening commodity costs and inflationary increase in input costs.
3.
Provision for current tax for the quarter is net of reversal of Rs. 1.66 crores relating to earlier year. The provision for Fringe Benefit Tax charged in the first quarter of the current year has been reversed in the current quarter pursuant to abolition of the same as per Finance Act, 2009.
4.
The Earnings per Share (Basic and Diluted) for the six months ended 30th September 2009 is Rs 48.67 compared to Rs 13.18 for the previous year’s corresponding six months. The Earnings per Share (Basic and Diluted) prior to exceptional items (net of tax thereon) for the six months ended 30th September 2009 is Rs 13.62 compared to Rs 13.01 forthe previous year’s corresponding six months.
5.
The company, during the quarter, has sold 29,38,713 equity shares of Rallis India Limited. Exceptional items include profit arising out of the aforesaid sale amounting to Rs 247.72 crores net of amortization of amounts incurred on Employee Separation Scheme of Rs 2.19 crores. Exceptional Items for the previous year’s corresponding quarter includes profit on sale of Long Term Investments net of amortization of amounts incurred on Employee Separation Scheme.
6.
The company, during the quarter, has increased its stake in its subsidiary Mount Everest Mineral Water Limited from 40.11% to 40.27%.
7.
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.
8.
The Company did not have any investor complaints pending as on July 01, 2009 and as on September 30, 2009. Three investors’ complaints were received and disposed during the three months ended September 30, 2009.
9.
Previous period’s figures have been re-arranged 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 October 26, 2009 and taken on record by the Board of Directors at its Meeting held on October 28, 2009. The statutory auditors of the company have audited these results.

 

 

Mumbai: October 28, 2009 

R K Krishna Kumar 
(Vice Chairman) 


 

  

Unaudited Consolidated Financial Results for the three months ended September 30, 2009



 

Rs Lakhs


Three months ended
September 30

Six months ended
September 30

Audited 
Year ended March 31

2009

2008

2009

2008

2009

Net Sales / Income from Operations

139729

118088

267240

229417

484787

Other Operating Income 

553

619

2602

1035

2623

Total Operating Income 

140282

118707

269842

230452

487410

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

(1437)

(2762)

(2744)

(2186)

(7169)

(b) Consumption of Raw Materials

50137

40266

95451

74679

162810

(c) Purchase of Traded Goods 

5849

5639

11652

9648

19637

(d) Employees Cost

15335

13431

29863

26086

55416

(e) Advertisement & sales carges 

23808

21067

44903

41670

88024

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

2515

2210

4962

4432

9869

(g) Other Expenditure

29199

26099

55786

50991

104130

Total Expenditure

125406

105950

239873

205320

432717

Profit from Operations before Other Income, Interest & Exceptional Items

14876

12757

29969

25132

54693

Other Income - Income from Investments

2274

2193

2733

2931

3320

Profit Before Interest & Exceptional Items 

17150

14950

32702

28063

58013

Interest (Net) 

978

1536

1503

2626

5420

Profit after Interest but before exceptional items

16172

13414

31199

25437

52593

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

3196

20463

(11401)

20463

34280

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

769

-

(2130)

781

489

Other Exceptional Income / (Expenditure) (Net)

18044

(627)

16959

(488)

38269

Profit before Tax

38181

33250

34627

46193

125631

Provision for Taxation

(a) Current

9820

10236

8833

14602

43137

(b) Deferred

(135)

(1)

504

(39)

(997)

(c) Fringe Benefit Tax

(73)

70

-

146

301

Profit after Tax

28569

22945

25290

31484

83190

Share of Profit from Associates

2435

3223

1931

3327

2493

Minority Interest in Consolidated Profit

(2260)

(4392)

(434)

(5466)

(15628)

Group Consolidated Net Profit 

28744

21776

26787

29345

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

46.48

35.21

43.32

47.45

113.28

Aggregate of Public Shareholding

- Number of Shares

40039626

40021538

40039626

40021538

39999626

- Percentage of Share holding

64.75%

64.72%

64.75%

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)

34.40%

 

34.40%

 

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

14300231

 

14300231

 

12340231

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

65.60%

 

65.60%

 

56.50%

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

23.12%

 

23.12%

 

19.96%


 


Notes: 

1. The Consolidated Income from Operations for the quarter at Rs 1397 crores has increased by 18% as compared to the corresponding period of the previous year due to strong branded performance aided by improved price realization in key markets which offset the increase in commodity costs.

2. Profit before exceptional items for the quarter at Rs 162 crores (Operating Profit) has increased by 21% as compared to the corresponding period of the previous year due to improved operating performance and lower net interest costs. 

3. During the quarter, consequent to a favourable exchange rate movement, there is a notional unrealized gain on translation of short term foreign currency financial assets held by an overseas subsidiary, reversing the trend of unfavourable exchange rate movements experienced during the first quarter of this year. During the year ended 31st 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 3 crores relating to restructuring of business.
(b) Amortization of amounts incurred on Employee Separation Scheme amounting to Rs 2 crores 

(c) Profit on sale of shares held in Rallis India Ltd of Rs 186 crores computed after adjustment for share of profit of the associate (net of dividend) accounted for in earlier years in accordance with the relevant accounting
 standard

In the corresponding period of the previous year, other exceptional expenditure comprised of reorganization costs and amortization of amounts incurred on Employee Separation schemes partially offset by profit on sale of shares.

5. During the quarter, the Company increased its stake in one of its subsidiaries, Mount Everest Mineral Water Limited (MEMWL), from 40.11% to 40.27%. Further, due to the issue of fresh shares, by Amalgamated Plantations Private Limited (APPL), the shareholding of the company in APPL has reduced from 49.78% to 49.07%.

6. Consequent to the sale of shares in Rallis India Limited on August 20, 2009 it ceased to be an associate of the Company.

7. With effect from 1st September 2009, the Tetley Group through its subsidiary, which has financial participation by European Bank for Reconstruction and Development, acquired 51% stake in an existing Russian beverage company. Accordingly, the Russian beverage company has been consolidated as a subsidiary in these results. 

8. Earnings per share (EPS) (basic and diluted- not annualised) for the quarter ended September 30, 2009 of Rs. 46.48 is higher than Rs 35.21 reported for the corresponding period 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. 17.93 as compared to Rs 17.12 for the corresponding period of the previous year, reflecting the improved performance.

9. 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.

10. 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

Quarter Ended 30th September 

Half Year Ended 30th September 

 

2009-10

2008-09

2009-10

2008-09

Total Operating Income 

426

324

846

639

Profit after Tax

258

44

301

82

Earnings per Share - Rs (Not Annualised) 

41.73

7.08

48.67

13.18



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

12. The aforementioned results were reviewed by the Audit Committee of the Board on October 26, 2009 and subsequently taken on record by the Board of Directors at its Meeting held on October 28, 2009 The statutory auditors of the company have limited reviewed these results.


 

Mumbai: October 28, 2009 

R K Krishna Kumar 
(Vice Chairman) 


 

  

Unaudited Consolidated Segment wise Revenue, Results and Capital Employed, under 
Clause 41, of the Listing Agreement for the Three months ended Sept 30, 2009


 

(Rs. in Lakhs) 

 

Three months ended
September 

Six months ended
September 

Year Ended
March 31st 2009 Audited 

 

2009

2008

2009

2008

1. Segment Revenue/ Other Operating Income

a) Tea

106328

91702

203706

179592

378515

b) Coffee & Other Produce 

32862

25870

63927

48498

104712

c) Others

1011

1126

2115

2343

4088

d) Unallocated 

81

9

94

19

95

Total Operating Income 

140282

118707

269842

230452

487410

2. Segment Results - Profit / (Loss)

a) Tea

10131

9994

20347

20320

44115

b) Coffee & Other Produce 

5126

3990

10227

6684

14663

b) Others 

(284)

(987)

(871)

(1508)

(3233)

Total

14973

12997

29703

25496

55545

ADD / (Less) 

 

 

 

 

 

i) Interest(net)

(978)

(1536)

(1503)

(2626)

(5420)

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

3196

20463

(11401)

20463

34280

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

769

-

(2130)

781

489

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

20221

1326

19958

2079

40737

Total Profit before Tax

38181

33250

34627

46193

125631

3. Capital Employed

a) Tea

355876

303449

355876

303449

350136

b) Coffee & Other Produce 

101831

93786

101831

93786

102461

c) Others 

6677

2467

6677

2467

6951

d) Unallocated including Investments 

60909

93183

60909

93183

7172

Total

525293

492885

525293

492885

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. Unallocable income / expenditure include income / expenditure incurred on common services at the corporate level and relates to an Indian subsidiary.

Mumbai: October 28, 2009

R K Krishna Kumar 
(Vice Chairman) 


 

 


Financial Highlights

(Rs. in Crores) 

 

Three months ended
September 

Six months ended
September 

Year Ended
March 31st 2009 

 

2009

2008

2009

2008

 

Total Operating Income

1402.82

1187.07

2698.42

2304.52

4874.10

Profit before Exceptionals 

161.72

134.14

311.99

254.37

525.93

Exceptionals (net)

220.09

198.36

34.28

207.56

730.38

Net Profit Before Tax 

381.81

332.50

346.27

461.93

1256.31

Net Profit after Tax

285.69

229.45

252.90

314.84

831.90

Earnings per Share - Rs* 

46.48

35.21

43.32

47.45

113.28

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

17.93

17.12

31.40

28.58

47.83

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

 

 

 

 

17.50


* Not annualised for the quarter and half year


 

 


 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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