Mumbai: Tata Global Beverages Ltd (TGBL) on Tuesday reported consolidated net profit in the June quarter rose 51.94% to Rs.119.52 crore from Rs.78.66 crore a year ago, beating market estimates.
Net sales increased 3.84% to Rs.1,711.48 crore from Rs.1,648.12 crore a year ago. A Bloomberg poll of analysts had estimated consolidated net profit at Rs.97.82 crore and revenues at Rs.2,125.9 crore.
“We have recorded steady growth in a challenging market environment. We continue to strengthen our brands and grow them, based on strong consumer insights while maintaining focus on operational efficiencies. Our focus on the health and wellness trend will continue; we see this as a key opportunity for our products worldwide,” said Ajoy Misra, managing director and chief executive officer, TGBL, in a statement.
The company adopted the Indian Accounting Standards—Ind (AS)—on 1 April. Accordingly, the financial results for both the current and previous quarter have been presented as per the principles of Ind (AS). “Income from operations” under the new accounting principles is lower than the numbers reported under the previous Generally Accepted Accounting Principles (GAAP) mainly due to the treatment of joint ventures and treatment of certain expenditure which are required to be offset from sales under the new standard, the company said.
As such, some of the differences under Ind (AS) is that expenditure is required to be offset from sales on account of measurement criteria for revenues. Also, joint ventures are required to be equity accounted instead of proportionate consolidation, whereas agriculture produce is required to be fair valued. Total income under the previous GAAP accounting method would have been Rs.2,028.99 crore as compared with Rs.1,672.18 crore reported under Ind AS, the company said.
Shares of TGBL gained 0.35% to close at Rs.143.40 apiece on Tuesday on BSE, while the benchmark index, Sensex lost 0.35% to close at 28,085.16 points. The results were announced after the market closed.