Tata Global Beverages (TGB) benefitted from lower finance and other expenditure to see a 53% increase in consolidated net profit to Rs 119.04 crore for the quarter ended September 30, 2012 from Rs 77.69 crore last year. Net sales grew 7.46% to Rs 1,843 crore in the quarter versus Rs 1,715 crore last year.
TGB's total expenditure for the quarter grew by 10% with the company benefitting from lower raw material costs which moved up by a marginal three% during the quarter. Allied expenditure such as that on employee benefits and depreciation was also up by a marginal one to two% though advertising & sales promotion expenditure increased by 18% during the quarter.
TGB's derives nearly 65% of its revenues from international markets and 35% from domestic markets.
TGB's profitability for the quarter also improved thanks to other income of Rs 34 crore and an almost Rs 12 crore share of profit from associates. TGB did not specify the associates or the source of the other income for the quarter.
Its tax expenditure for the three months ended September 2012 was also down to Rs 31 crore from Rs 49 crore last year.
Harish Bhat, managing director and CEO, TGB, said, "Key markets have performed well, with constant focus on category expansion, innovation and operating efficiencies. Our strategic alliances with Pepsico and Starbucks have recorded excellent progress."
In October, the Starbucks-TGB joint venture debuted with its first store in Mumbai. More are expected to come up in the financial capital, with the JV moving to Delhi in early 2013.
On the company's second venture with PepsiCo, Bhat said that its product - Tata Water Plus - was now available in all major towns and cities in Tamil Nadu and was growing its presence in Andhra Pradesh. "The brand has been well received in the market, and has made significant distribution gains," he added.
The stock of TGB was down 0.43% on the Bombay Stock Exchange (BSE) to close trade today at Rs 150.25. It recorded an intra-day high of Rs 152.60 and a low of Rs 148.90.
