BackTata Global Beverages posts `95 crore profit in March quarter
Profit rises 76.6% from a year earlier, driven by improved performance in branded tea operations, foreign exchange gains
Premium(Tata Global Beverages’ profit fell short of Bloomberg’s estimate of `162.5 crore.)
Mumbai: Tata Global Beverages Ltd, the maker of Tetley and Tata Tea, said profit rose 76.6% in the March quarter from a year earlier, driven by improved performance in branded tea operations and foreign exchange gains.
The company, which runs the Starbucks coffee chain in India through a joint venture with the Seattle-based company, said profit rose to ₹ 95 crore while revenue rose 6.3% to ₹ 1,849 crore. Profit fell short of Bloomberg’s estimate of ₹ 162.5 crore. Sales was pegged at ₹ 1,890.10 crore.
The rise in earnings was on account of “better operational performance and favourable foreign exchange translation", said V. Srinivasan, research analyst, fast-moving consumer goods, Angel Broking.
“OPM (operating profit margin) rose marginally by 18 bps (basis points) y-o-y (year-on-year) to 10.2%, aided by 246 bps y-o-y increase in gross margins," he added. One basis point is one-hundredth of a percentage point.
While interest and depreciation costs rose 99.7% y-o-y and 20.7% y-o-y, respectively, profitability was hurt by a ₹ 38 crore loss made by associate companies compared with a ₹ 20 crore loss in the year-ago quarter, Srinivasan said.
Other income rose 64% from a year ago, “thus, despite a 7% year-on-year increase in operating profit, recurring PAT (profit after tax) rose only marginally by 1.7%", said Srinivasan.
Tata Global rose 0.77% to ₹ 144.65 on BSE on Tuesday, while the benchmark Sensex rose 0.65% to 20,160.82 points.
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