Tata Tea net declines 69%

Tata Tea posted a 69 per cent decline in net profit (consolidated) at Rs 396 crore for the third quarter ended December 2008 compared with Rs 1,292 crore recorded in the previous corresponding quarter. The stock price was down by 2.73 per cent at Rs 606.05 on the BSE.

The PAT was lower on account of an one-time profit from the sale of stake in energy brands in the corresponding previous quarter, which brought Rs 1,605 crore to the company. The profit before exceptional items at Rs 142 crore has risen by 3 per cent after absorbing the adverse impact of hardening commodity prices and higher input costs, partly offset by savings in interest costs.

 

The revenue of the group grew 14 per cent, driven by a strong brand performance and favourable exchange rate movements, to touch Rs 1,301 crore compared to Rs 1,136 crore for the same quarter a year ago.

On a sequential basis, net profit grew 72 per cent from Rs 229 crore. Its revenue grew 7.8 per cent. On a standalone basis, Tata Tea posted a net profit of Rs 48.30 crore for the December quarter, up from Rs 43.78 crore in the same quarter last financial year.