Tata Global Beverages, which owns brands such as Tata Tea and Tetley, has reported a threefold rise in net profits for the quarter ending June, due to exceptional gains.
The company posted a net profit of Rs 160.9 crore in the first quarter compared to Rs 45.6 crore profit same period last year. The bottom line was boosted by exceptional income of Rs 89 crore from the sale of non-core investments. The company recorded an exceptional expense of Rs 13 crore in the comparable period last year.
During the quarter, net sales stood at Rs 1,455.9 crore against Rs 1,373.89 crore and total expenses were Rs 1,373 crore compared to Rs 1,265 crore last year. The increase in expenditure was mainly due to rise in raw tea and coffee prices in the local and international markets.
The company in June-July, transmitted the higher cost to its customers by raising prices of brands such as Premium, Gold and Agni.