Tata Global Beverages net profit jumps 49%

Bucking the trend over the last few quarters, Tata Global Beverages reported a 49 per cent increase in consolidated net profit for the quarter ended September 30 to Rs 77 crore versus Rs 61.8 crore reported last year.

Net sales were up 11 per cent to Rs 1,612 crore versus Rs 1,448 crore last year.

The company, however, did see some pressure on its margins on account of higher total costs. The cost was up 12 per cent during the quarter to Rs 1,517.33 crore against Rs 1,350 crore reported last year.

Consequently, operating margins were down 6.9 per cent in comparison to 7.1 per cent reported last year.

The company said price increases in some markets had aided performance during the quarter. The favourable impact of exceptional items and lower interest costs had partially offset the impact of commodity costs. On a standalone basis, the company's net profit was up 66 per cent to Rs 50.46 against Rs 30.37 crore reported last year. Net sales were up 13 per cent to Rs 498.16 crore versus Rs 440.47 crore reported last year.

“In India, we continue to be leaders in volume and now have value leadership as well,” Percy Siganporia, managing director, Tata Global Beverages said.

The company's volume share stood at 19.7 per cent, while value share stood at 21.5 per cent. The company also announced it had appointed Indian Hotels veteran Ajoy Misra as its executive director. Misra will be based in the UK and will have additional responsibilities of overseeing the global beverage operations as deputy chief executive officer, the company said.

The stock of Tata Global Beverages was up 2.05 per cent on the Bombay Stock Exchange to close trade at Rs 89.8. Its intra-day high was Rs 90.80, while its low was Rs 89.10.