Tata Global Beverages rose 1.34% to Rs 144 at 11:41 IST on BSE after consolidated net profit rose 49% to Rs 120 crore on 9% increase in income from operations to Rs 2081 crore in Q3 December 2013 over Q3 December 2012.
The result was announced after market hours on Wednesday, 29 January 2014.
Meanwhile, the BSE Sensex was down 211.64 points, or 1.03%, to 20,435.66.
On BSE, so far 2.70 lakh shares were traded in the counter, compared with an average volume of 3.91 lakh shares in the past one quarter.
The stock hit a high of Rs 144.85 and a low of Rs 140.10 so far during the day. The stock hit a 52-week high of Rs 170.20 on 3 November 2013. The stock hit a 52-week low of Rs 122 on 26 March 2013.
The stock had underperformed the market over the past one month till 29 January 2014, sliding 10.09% compared with the Sensex's 2.58% fall. The scrip had underperformed the market in past one quarter, falling 12.50% as against Sensex's 1.35% fall.
The mid-cap company has an equity capital of Rs 61.84 crore. Face value per share is Re 1.
Tata Global Beverages said a rise in income from operations reflected good performance in some key markets coupled with favourable foreign exchange translation impact. A jump in net profit mainly reflected the impact of lower tax liability, as well as improved performance of some key countries and associate companies, the company said.
During the quarter, the holding company's overseas subsidiaries sold their stake in a US-based functional beverage company, which investment had been fully impaired in the previous quarter. The consideration for this sale is largely contingent on future performance and restructuring of the business, the company said.
Tata Starbucks - a joint venture between Tata Global Beverages and Starbucks- now has 34 Starbucks stores across the cities of Mumbai, Delhi, Bangalore and Pune. The stores continue to see excellent consumer response. The quarter also witnessed the successful launch of a fabulous new flagship store in Bangalore, the company added.
Mr. Harish Bhat, Managing Director and CEO of Tata Global Beverages, said - "This has been an exciting quarter for us at Tata Global Beverages. We have relaunched some of our key tea and coffee brands with new products and powerful marketing programs during the quarter, which have entailed significant marketing investments. In a few global markets, we have also faced and responded appropriately to some challenging marketplace conditions, particularly on account of commodity price trends in coffee and significant competitor activity. In our newest category, water, we continue to witness very good growth of our offerings such as Himalayan and Tata Water Plus, through Nourishco, our joint venture with Pepsico."
In a separate announcement before trading hours today, 30 January 2014, Tata Global Beverages said its board has decided that Ajoy Misra, presently the Executive Director of Tata Global Beverages (TGBL) be elevated and appointed as the Managing Director of TGBL effective 1 April 2014, in place of Mr. Harish Bhat, who will step down at close of business on 31 March 2014 and move into a senior advisory position in the Tata Group.
The appointment of Mr. Misra as the Managing Director will be subject to all statutory approvals as required and the approval of the members of the company.
Mr. Ajoy Misra will, with immediate effect, function as "Managing Director Designate", until he formally takes over as Managing Director on 1 April 2014. The board has also decided that Mr. Harish Bhat will be appointed as a non-Executive Director on the board of TGBL with effect from 1 April 2014, the company said.
Tata Global Beverages is a global beverage business; its brands have presence in over 40 countries. The company has significant interests in tea, coffee and water and is the world's second largest tea company. 250 million servings of its brands are consumed everyday around the world. The company has a stable of regional and global beverage brands, including: Tata Tea, Tetley, Himalayan natural mineral water, Tata Water Plus and Tata Gluco+, Good Earth tea, Grand Coffee and Eight O'clock coffee.
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