New Delhi: Tata Global Beverages Ltd (TGBL) on Wednesday posted a 10.56% increase in its consolidated net profit to ₹141.68 crore during the first quarter of 2019-20, on the back of strong sales.
Its net profit had stood at ₹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 ₹1,927.66 crore during the June 2019 quarter, compared with ₹1,831.11 crore a year ago.
Expenses, however, remained higher at ₹1,696.57 crore as against ₹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% volume growth and 7% 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% on Wednesday to settle at ₹252.25 apiece on the BSE.