Tata Global Beverages gains after Tata Starbucks registers good revenue

Tata Global Beverages rose 1.07% to Rs 146.25 at 15:28 IST on BSE after the company said Tata Starbucks registered a 39% increase in revenue to Rs 235 crore in the year ended March 2016 over the year ended March 2015.

The announcement was made after market hours yesterday, 27 September 2016.

Meanwhile, the BSE Sensex was up 73.59 points, or 0.26%, to 28,297.29.

On BSE, so far 6.43 lakh shares were traded in the counter, compared with average daily volume of 2.76 lakh shares in the past one quarter. The stock hit a high of Rs 148.90 and a low of Rs 145.65 so far during the day. The stock hit a 52-week high of Rs 149.80 on 6 January 2016. The stock hit a 52-week low of Rs 100.10 on 12 February 2016. The stock had outperformed the market over the past 30 days till 27 September 2016, rising 4.14% compared with 1.15% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 11.52% as against Sensex's 5.55% rise.

The mid-cap company has equity capital of Rs 63.11 crore. Face value per share is Re 1.

In an an investor presentation, Tata Global Beverages (TGBL) said the growth in Tata Starbucks' revenue was led by good in-store performance and expansion of number of stores.

Commenting on leveraging on relationship with Starbucks beyond the Indian market, TGBL said it is looking for supply agreements for other international markets of its Himalayan mineral water brand, which is now available at Starbucks outlets in Singapore.

Tata Starbucks is the 50:50 joint venture (JV) between TGBL and US-based Starbucks Coffee International Inc. The JV operates 84 stores in leading metros such as Delhi, Mumbai, Banagalore, Pune, Hyderabad and Chennai after opening the first store in 2012 in Mumbai.

On a consolidated basis, net profit of Tata Global Beverages rose 51.95% to Rs 119.52 crore on 3.84% rise in net sales to Rs 1711.48 crore in Q1 June 2016 over Q1 June 2015.

Tata Global Beverages focusses on branded natural beverages tea, coffee and water. Tata Global Beverages is the 2nd largest player in branded tea in the world. It has a strong portfolio of brands, including Tata Tea, Tetley, Jem?a, Vitax, Eight O'Clock Coffee, Himalayan, Grand Coffee and Joekels.

Powered by Capital Market - Live News