Tata Tea, the world’s second largest tea company, posted a 8.5 per cent drop in Q1 net profit as raw material prices and higher level of advertisement expenditure during the quarter.
Profit fell to Rs 37.7 crore in the first quarter ended June 30, 2008. The company’s net sales grew 12.2 per cent year-on-year to Rs 314.9 crore and operational profit rose by 2.9 per cent to Rs 56.7 crore.
Its raw material costs were 26 per cent higher than at Rs 16.5 crore over Rs 19.9 crore same quarter previous year.