Tata Global Beverages fell 10.22% to Rs 257.95 at 11:30 IST on BSE after consolidated net profit rose 39.98% to Rs 71.56 crore on 0.38% rise in net sales to Rs 1688.40 crore in Q4 March 2018 over Q4 March 2017.
The result was announced after market hours on Friday, 11 May 2018.Meanwhile, the S&P BSE Sensex was up 50.50 points, or 0.14% to 35,586.29.
On the BSE, 7.69 lakh shares were traded in the counter so far compared with average daily volumes of 1.86 lakh shares in the past two weeks. The stock had hit a high of Rs 286.95 and a low of Rs 256.75 so far during the day. The stock hit a record high of Rs 328.80 on 15 January 2018. The stock hit a 52-week low of Rs 140.50 on 24 May 2017.
For the quarter, after excluding the impact of sale and restructuring of the group's businesses, revenue from operations increased by 4% in constant currency on a comparable basis. The group net profit for the quarter grew by 40% as compared to the corresponding quarter of the previous year due to lower level of exceptional expenditure.
Consolidated net profit rose 22.36% to Rs 556.50 crore on 0.53% rise in net sales to Rs 6815.35 crore in the year ended March 2018 over the year ended March 2017.
For the year, after excluding the impact of sale and restructuring of the group's businesses, revenue from operations has increased by 2% in constant currency on a comparable basis. Profit before exceptional items at Rs 774 crore is higher by 18% as compared to previous year due to improved operating performance, restructuring, good cost management and lower finance costs. Group consolidated net profit for the year at Rs 557 crore is higher by 22% as compared to the previous year. Whist operating performance from the branded segment was 18% higher, profits from the nonbranded segment were lower due to adverse impact of abnormal and extreme weather conditions resulting in substantially lower coffee crop harvested. This was further accentuated by lower commodity prices.
The year saw strong focus on strengthening the company's core brands, streamlining the business and category expansion.
Ajoy Misra, managing director and CEO of Tata Global Beverages said that over the last year, the company has focused on streamlining the organization for better agility and business performance. Tata Global Beverages remains focused on base business rejuvenation through brand building, category expansion and enhancing distribution reach. It continues to explore new opportunities through its pilot projects such as Tata Cha, products in the RTD segment and entering new categories like Tetley Squash. The firm is also increasingly focusing on the digital space and leveraging the possibilities this offers, both in terms of consumer connect campaigns as well as e-retail. The company's joint ventures have clocked good growth and have performed well during the year, he added.
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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