Tata Global Beverages fell 1.12% to Rs 207.20 at 13:46 IST on BSE after consolidated net profit declined 61.48% to Rs 22.90 crore on 5.16% rise in net sales to Rs 1775.46 crore in Q4 March 2019 over Q4 March 2018.
The result was announced after market hours yesterday, 23 April 2019.Meanwhile, the S&P BSE Sensex was up 45.74 points, or 0.12% to 38,610.62.
On the BSE, 4.04 lakh shares were traded in the counter so far compared with average daily volumes of 1.55 lakh shares in the past two weeks. The stock had hit a high of Rs 211.55 and a low of Rs 200.50 so far during the day. The stock hit a 52-week high of Rs 299.80 on 2 May 2018. The stock hit a 52-week low of Rs 177.50 on 11 February 2019.
On a consolidated basis, net profit of Tata Global Beverages declined 17.63% to Rs 408.19 crore on 6.40% rise in net sales to Rs 7251.50 crore in the year ended March 2019 over the year ended March 2018.
Group net profit for the quarter and full year is lower mainly due to higher exceptional items, higher share of losses from JVs and associates and higher one-time tax credits in the previous year.
Moreover, Tata Global Beverages said it has entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries, for an aggregate consideration of up to Rs 101 crore. The proposed acquisition shall be subject to due-diligence and applicable approvals.
The Dhunseri branded tea business currently has the 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 Tata Global Beverages' ambition to grow its branded tea business in India.
Tata Global Beverages is a global beverage business; its brands have presence in over 40 countries. The company has significant interests in tea, coffee and water and is the world's second largest tea company.
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