Tata Tea net up 76% to Rs 27.44 cr

BS 200 SCORECARD

Tata Tea has reported a 76 per cent increase in net profit to Rs 27.44 crore in the third quarter ended December 31, 2004, compared with Rs 15.57 crore in the corresponding period last year.

Income from operations improved by 18 per cent to Rs 239.62 crore over the previous year's corresponding quarter. The company attributed the growth to strong performance from its branded tea operations that recorded a 16 per cent rise in volumes coupled with higher tea exports that grew by 40 per cent.

Under the Indian Gaap, the Tetley group (the company's 98.58 per cent subsidiary) net profit increased 23 per cent to Rs 49.75 crore in the third quarter of 2004-05.

Income from operations stood at Rs 522.24 crore against Rs 545.26 crore in the third quarter ending December 31, 2003. On a consolidated basis, Tata Tea net profit increased 43 per cent to Rs 89.29 crore over the third quarter of the preceding year.

Income from operations declined marginally from Rs 807.27 crore to Rs 806.14 crore. Tetley executives said that the Tetley tea business in key markets such as the UK, France and US has recorded improved performance except in Australia that saw flat growth.

The company has recently expanded its presence into other geographies like Russia, South Africa, Bangladesh and Pakistan. The company repaid £10 million during the first quarter of 2004-05 and currently the total debt stands at 145 million pounds.

"We will be refinancing this debt with low-cost debt and we are targeting 200 basis points over Libor," a company official said. The current cost of borrowings stands at around 325 basis points over Libor.