Tata Global Beverages Q3 net up 25 pc at Rs 136 cr

Tata Global Beverages on Tuesday reported a 25 per cent growth in net profit for the quarter ended December at Rs 135.85 crore.

The company's net profit stood at Rs 108.86 crore during the corresponding quarter of 2018-19, Tata Global Beverages Ltd (TGBL)said in a release here.

Its revenue grew 4 per cent to Rs 1,962 crore during the quarter under review as compared with Rs 1,912.58 crore a year ago.

"We had a good quarter mainly driven by better cost management, lower commodity prices and higher spend on advertisement. This was also aided by lower tax rate and improvement in the performance of associates and joint ventures," Tata Global Beverages Executive Director and Group CFO L KrishnaKumar told PTI here.

The India branded tea business did well during the quarter and clocked a growth of 7 per cent in volume and 6 per cent in value terms, he said.

"Our national brands saw growth led by Tata Tea Spice Mix, Tata Tea Agni and Tata Tea Premium," he added.

TGBL had a strong quarter in its international business, he said, adding it launched new products in the UK and US markets aimed at revitalising the black tea market.

"In Canada, we recorded volume growth in branded tea. Tetley continued its strategic master brand refresh campaign in the UK. The brand is aiming to revitalise the tea category and strengthen its position in tea with the 'Now we're talking' campaign," he said.

Tetley in the UK launched an 'ethnic' range of specialty Indian flavoured tea aimed at the South Asian diaspora living in the UK and Europe.

"In January 2020, we completed the sale of Tata Global Beverages Czech Republic, including trademark rights, to Dr. Mller Pharma, an established Czech company respected in the fields of medicine, cosmetics and food supplements," he said, adding that going forward TGBL will focus on larger international markets.

Talking about the merger of the consumer products business of Tata Chemicals Limited (TCL), he said it is on schedule and is expected to be completed during the fourth quarter of current financial year.