Tata Global dives on drop in Q4 net

The company's net profit for the quarter ended March 2014 declined 28% to Rs 69 crore.

Tata Global Beverage, the maker of Tata Tea, Tetley and Himalayan natural mineral water, plunged 4.5%, after its net profit for the quarter ended March 2014 declined 28% to Rs 69 crore. The stock is currently quoting at Rs 149 on the BSE.

 

The company had recorded a profit of Rs 95 crore in the year-ago period. The fall in profit margins was due to a sharp rise in advertising and marketing budgets, along with some new initiatives. 

 

Ajoy Misra, Managing Director and CEO of Tata Global Beverages, said “In a challenging market environment, we continue to invest strongly behind our brands. We have made good progress on category expansion into coffee and the single serve business in Australia with the acquisition of the MAP brand.” 

 

The company has also announced that it has acquired ‘MAP’ brand in Australia this month; though moderate in size, the brand is significant for the Australian market and will help Tata Global Beverages further expand its offering in Australia to include coffee. MAP is present in roast and ground coffee, single serve coffee pods and machines and in the food service industry. 

 

The stock opened at Rs 153, touched a high of Rs 154 and a low of Rs 148 on the BSE. A total of over 2,655,034 shares have been traded on both the stock exchanges so far.