Tata Tea Q3 net dips 37.49%

Tata Tea, the largest tea company by volume, registered a growth of 22.2 per cent in income from operations at Rs 355.38 crore in the quarter ended December 31, 2007, over Rs 290.77 crore in the same quarter last year.

Its profit after tax was lower by 37.49 per cent at Rs 58.88 crore in this quarter compared with Rs 94.20 crore in the previous comparable quarter.

This dip in net profit was on account of exceptional profits on sale of shares received in the previous quarter year-on-year (y-o-y).

Percy Siganporia, managing director, said, "Our operating profit has gone up, driven by higher branded tea volumes, which have grown by 15 per cent and increased auction sales. The variation in profit figures is due to the one-time exceptional gain from the equity sale in Glaceau."

R K Krishnakumar, vice-chairman, Tata Tea, added, "The company by the end of the financial year would be debt-free. Even in this quarter, we have very marginal debt. Our cash flow is now very strong and ready for further acquisitions."

Tata Tea's consolidated net profit stood at Rs 1,307.31 crore, much above the company's third quarter profit in the previous year at Rs 117.19 crore.

Its income from operations was up by nearly 7 per cent from Rs 112.57 crore and profit before tax and exceptional items at Rs 190.38 crore, up by nearly 55 per cent over Rs 123.16 crore, mainly driven by improved operating performance and lower interest costs.