Tata Global Beverages (TGBL) Tuesday reported a 49.70 per cent fall in consolidated net profit at Rs 35.99 crore for the March quarter, impacted by higher tax outgo.
The company had posted a profit of Rs 71.56 crore for January-March 2018, TGBL said in a BSE filing.
Meanwhile, TGBL said it will acquire the branded tea business of Dhunseri Tea & Industries for an aggregate consideration of Rs 101 crore.
TGBL's total income during the quarter under review was up 5.63 per cent at Rs 1,810.69 crore as against Rs 1,714.12 crore in the same period a year ago.
"Group net profit for the quarter and full year is lower mainly due to higher exceptional items, higher share of losses from joint ventures and associates and higher one-time tax credits in the previous year," said TGBL.
TGBL, which reported a profit before exceptional items and tax (PBIT) of Rs 161.04 crore during the quarter, said its tax outgo numbers are not comparable.
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"Tax expense for the quarter is not comparable to that of the corresponding quarter of the previous year due to one time tax credits which significantly reduced the tax expense for the prior quarter and due to adjustments to deferred tax assets during the current quarter," said TGBL.
TGBL had a tax expense of Rs 58.83 crore during period under review.
Its total expenses in the reported quarter were at Rs 1,649.65 crore as against Rs 1,548.75 crore in the year-ago period.
Revenue from the tea segment of the Tata group firm was up at Rs 1,250.95 crore as against Rs 1,177.24 crore in the year-ago period.
However, TGBL's earning from coffee was down to Rs 281.46 crore as against Rs 286.44 crore.
For the entire 2018-19 fiscal, TGBL reported a consolidated net profit of Rs 456.98 crore, down 17.88 per cent, as against Rs 556.50 crore in the previous financial year.
Total revenue for the fiscal stood at Rs 7,408.63 crore as compared to Rs 6,909.50 crore in the previous year.
"For the full year, revenue from operations increased by 6 per cent. Profit before exceptional items and tax at Rs 786 crore is down by 1 per cent mainly due to commodity costs in India and higher spends behind brands," TGBL said.
Meanwhile, in a separate filing, TGBL informed BSE that its board in a meeting held on Tuesday recommended a final dividend of Rs 2.50 per equity share for 2018-19.
On the acquisition, TGBL has said that it would help the company expand its tea business in regional markets like Rajasthan.
It had entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries.
Dhunseri branded tea business has two brands -- Lalghoda and Kalaghoda - which are among the leading local brands in Rajasthan, a market dominated by local players.
"This move is in line with TGBL's ambition to grow its branded tea business in India," it added.
TGBL stock on Tuesday settled at Rs 209.60 on BSE, down 0.26 per cent from the previous close.