Tata Tea Net Rises 27 Per Cent
Powered by a 33 per cent increase in income from operations, the Rs 700-crore Tata Tea's net profit has risen 27 per cent in 1996-97 compared to 1995-96.
The tea major's income from operations rose to Rs 699.44 crore from Rs 523.97 crore.
Net profit increased to Rs 58.62 crore from Rs 46.08 crore.
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The company has stepped up the dividend by fifty paise to Rs 6.5 per share.
Interest and depreciation charges were up by 74 per cent and 26 per cent respectively. Interest costs increased to Rs 30.22 crore from Rs 17.34 crore.
The company made a depreciation provision of Rs 12.27 crore in 1996-97 compared to Rs 9.74 crore in 1995-96.
The company's performance comes in the face of depressed tea prices in the earlier part of the year especially in the south, according to a Tata Tea press release.
The profit before tax of the companay, too, improved by 18 per cent to Rs 82.62 crore from Rs 69.78 crore.
The company's tax burden increased marginally to Rs 24 crore from Rs 23.70 crore.
Tata Tea's exports rose by 106 per cent to Rs 216 crore.
While the exports of its mainline products increased by 82 per cent, exports of traded coffee increased by 116 per cent.
Tea prices increased and stabilised by the end of 1996-97. Prices have firmed up further due to a spurt in export demand and sustained domestic sales, the release added.