You are here: Home » PTI Stories » National » News
Business Standard

Tata Global Beverages Q1 net profit rises 10 pc

Topics
Business Finance

Press Trust of India  |  New Delhi 

Tata Global Beverages Ltd (TGBL) on Wednesday posted a 10.56 per cent increase in its consolidated net profit to Rs 141.68 crore during the first quarter of 2019-20, on the back of strong sales.

Its net profit had stood at Rs 128.14 crore in the corresponding quarter of the previous year, the company said in a regulatory filing.

The company's total income rose to Rs 1,927.66 crore during the June 2019 quarter, compared with Rs 1,831.11 crore a year ago.

Expenses, however, remained higher at Rs 1,696.57 crore as against Rs 1,595.88 crore in the year-ago quarter.

TGBL Managing Director and Chief Executive Officer Ajoy Misra said the company clocked "steady revenue" and "profit growth" during the quarter.

"The India business recorded continued value and volume growth. Our flagship brands in India recorded a double-digit growth, and we will increase our focus on white space markets and the opportunities they present," he said.

Misra further said the international markets have recorded a "mixed performance" with volume growth in the UK, the US and Canada despite competitive intensity.

"We will further strengthen our innovation agenda across markets in addition to investing behind our core brands. Our JVs (joint ventures) have performed well and have posted good revenue growth in the quarter," he added.

During the quarter, the company said, its India tea business clocked an 8 per cent volume growth and 7 per cent value growth. The flagship brands Tata Tea Premium, Agni and Spice Mix saw double-digit value growth.

TGBL said its JV, Tata Starbucks, with its 151 stores spread across 8 cities in India clocked a 23 per cent growth in revenues during the first quarter.

Another JV company NourishCo recorded a total income growth of 8 per cent during the quarter, with continued focus on the national roll-out of Tata Gluco Plus. The product was recently rolled out in West Bengal, Bihar, Jharkhand and New Delhi.

On acquisitions, TGBL said the company had in April 2019 entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea and Industries Ltd.

Shares of the company rose 1.10 per cent on Wednesday to settle at Rs 252.25 apiece on the BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, July 31 2019. 19:45 IST
RECOMMENDED FOR YOU