Tata Tea PAT up 54 per cent

BS 200 SCORECARD

Tata Tea has recorded a profit after tax of Rs 94 crore, in the third quarter, up by 54 per cent, on the back of increase in branded value sales.

Income from operations increased four per cent to Rs 291 crore. Branded value sales were up by 16 per cent, partly offset by lower export sales.

However, profit before tax and exceptional items at Rs 44.02 crore was lower than Rs 48.94 crore in the preceding year's corresponding quarter due to interest on borrowings for acquisition at Rs 12.41 crore, on account of a bridge loan taken to finance the acquisition of Energy Brands Inc.

The company expects that the loans would be repaid from proceeds of preferential issue to Tata Sons' sale of investments and plantation restructuring.

Exceptional income during the quarter represents profit on sale of investments of Rs 63.54 crore net amortisation of employee separation scheme of Rs 2.19 crore.

Tata Tea's consolidated worldwide income from operations for the third quarter was Rs 1,113 crore, an improvement of 37 per cent over the preceding year's turnover for the corresponding period, driven by higher branded tea sales coupled with inclusion of income pertaining to acquisition of Jemca and Eight O Clock Coffee.