31st Jan 2007 13:53
Tata Tea Limited31 January 2007 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for three months ended December 31, 2006 Rs in crores Three months ended Nine months ended Previous December 31 December 31 Year ended 31st March, 2006 2005 2006 2005 2006 Income from Operations 290.77 278.41 819.12 770.13 982.05 Total Expenditure 235.07 225.56 636.40 605.50 806.26 (a) (Increase)/Decrease in stock 6.09 20.56 (39.07) (11.64) 11.60 (b) Purchase for trading/Consumption of Raw Materials 96.48 71.28 275.59 212.55 279.93 (c) Staff Costs 36.13 36.25 131.03 140.91 167.86 (d) Advertisement and Sale charges 25.74 25.51 68.31 66.10 89.99 (e) Other Expenditure 70.63 71.96 200.54 197.58 256.88 Profit before Interest and Depreciation 55.70 52.85 182.72 164.63 175.79 Interest (Net) 2.67 2.83 9.47 7.25 8.97 Depreciation 4.55 4.35 13.88 14.24 19.43 Profit before Tax from Operations 48.48 45.67 159.37 143.14 147.39 Interest on borrowings for acquisition (Note 7) 12.41 - 12.41 - - Income from Investments (Net) 7.95 3.27 67.96 33.50 57.96 Profit before Tax and exceptional items 44.02 48.94 214.92 176.64 205.35 Exceptional Income/(Expenditure) (Net) 61.35 20.22 127.15 27.48 25.17 Profit before Tax 105.37 69.16 342.07 204.12 230.52 Provision for Taxation (a) Current 10.67 9.16 38.05 37.50 43.74 (b) Deferred (0.15) (1.78) (0.51) (2.49) (2.95) (c) Fringe Benefit Tax 0.65 0.50 1.85 1.50 2.80 Profit after Tax 94.20 61.28 302.68 167.61 186.93 Paid up Equity Share Capital (face value of Rs 10 each) 59.03 56.22 59.03 56.22 56.22 Reserves excluding Revaluation Reserves - - - - 1,083.18 Earnings per share - Before Exceptional Items (Not annualised) -Rs 6.38 6.66 31.40 24.07 27.80 Earnings per share - (Not annualised) - Rs 16.38 10.90 53.43 29.81 33.25 Aggregate of Public Shareholdings (excludes shares held against GDRs) -Number of Shares 39,843,752 39,820,496 39,843,752 39,820,496 39,859,496 -Percentage of Share holding 67.49% 70.83% 67.49% 70.83% 70.90% Notes: 1. Income from operations for the quarter at Rs 290.77 crores displays agrowth of 4% over the corresponding period of the previous year mainly driven bybrand value sales which have grown by 16% partly offset by lower export sales.Operating profits at Rs 48.48 crores have improved by 6%. 2. Exceptional items during the quarter represent profit on sale ofinvestments of Rs 63.54 crores less amortization of amounts incurred on EmployeeSeparation Scheme of Rs 2.19 crores. 3. The Accounting Standard AS 15 (revised 2005) on Employee Benefits hasbecome mandatory with effect from April 1, 2006. The past liability, in terms ofthe transitional provisions of the Standard, amounting to Rs 32.05 crores (netof tax) has been adjusted against the opening reserves. Provision for thecurrent period has been made in these results based on the revised Standard. 4. In view of the seasonality of the cropping pattern in the North IndiaPlantation operations and in accordance with the accounting practiceconsistently followed in the past for quarterly and half yearly results, stockof teas in the North India Plantation Operations as on December 31, 2006 hasbeen valued at the lower of estimated cost of production (full year productionand expenditure) and net realizable value. 5. Particulars of complaints received from the investors during thequarter, complaints resolved and those pending are as follows: Particulars of Complaints Numbers Outstanding as on October 1, 2006 Nil Received during the quarter 4 Resolved during the quarter 4 Outstanding as on December 31, 2006 Nil 6. During the quarter, the Company made a preferential issue of 28,10,000equity shares at a price of Rs 777 per share and an equal number of warrants toTata Sons Ltd. The warrants are convertible to equity shares at fair marketvalues, to be determined based on applicable regulations, on a date after 1stApril 2007 but before 31st March 2008. The EPS has been calculated consideringthe said increase in capital. 7. The Company has made an investment of Rs 763.39 crores in itssubsidiary, Tata Tea GB Ltd, UK to partially finance the acquisition of a 25%stake in Energy Brands Inc, USA (EBI). This investment in the subsidiary hasbeen financed by bridge loans on which the interest amounts to Rs 12.41 crores.These loans are expected to be repaid from the proceeds of preferential issue toTata Sons Ltd, sale of investments and plantation restructure. 8. During the quarter, the Company's subsidiary Tata Coffee Ltd made arights issue of 62,34,352 shares and an equivalent number of redeemabledebentures. The Company subscribed to 44,18,051 equity shares and an equalnumber of redeemable debentures for a sum aggregating to Rs 176.72 crores. 9. Under a scheme of reconstruction pursuant to sections 391,394 andother applicable provisions of the Companies Act, 1956 the Company proposes totransfer after receipt of necessary approvals, the undertaking of its NorthIndia Plantation Division to a new company with effect from April 1, 2007, foran aggregate consideration of Rs 359 crores including transaction costs butexclusive of the value of current assets and certain specified assets for whichvalue is to be determined. The Company expects to retain a minority stake in thenew venture and will be allotted equity shares in part settlement of theconsideration for transfer. 10. Previous period's figures have been recast to the extent necessary, toconform to the current period's figures. 11. The aforementioned results were reviewed by the Audit Committee of theBoard on January 30, 2007 and subsequently taken on record by the Board ofDirectors at its Meeting held on January 31, 2007. The statutory auditors of thecompany have audited these results. Ratan N Tata Mumbai: January 31, 2007 (Chairman) Unaudited Consolidated Financial Results ( Provisional ) for the three months ended December 31, 2006 Rs in crores Three months ended Nine months ended Previous December 31 December 31 Year ended 2006 2005 2006 2005 March 31, 2006 Income from Operations 1112.57 811.70 2885.45 2307.20 3123.92 Total Expenditure 912.04 670.08 2347.09 1865.81 2561.45 Profit before Interest and Depreciation 200.53 141.62 538.36 441.39 562.47 Operating Interest (Net) 24.43 26.86 76.06 77.25 98.45 Depreciation 26.24 18.69 72.22 54.82 75.84 Profit Before Tax from Operations 149.86 96.07 390.08 309.32 388.18 Income from Investments (Net) 6.75 0.32 55.18 21.96 26.94 Interest on borrowings for Acquisition 66.51 1.44 89.47 1.44 3.98 Exchange Gain on restatement of Foreign Currency Loan 33.06 - 33.06 - - Profit before Tax and Exceptional Items 123.16 94.95 388.85 329.84 411.14 Exceptional Income / (Expenditure) (Net) 42.36 (12.26) 107.51 9.65 7.26 Profit before Tax 165.52 82.69 496.36 339.49 418.40 Provision for Taxation 39.26 22.30 98.29 93.28 117.86 Profit after Tax 126.26 60.39 398.07 246.21 300.54 Share of Profit/(Loss) from Associates (0.90) 2.10 8.81 9.68 11.70 Minority Interest in Consolidated Profit 8.17 2.41 15.54 8.22 13.09 Group Consolidated Net Profit 117.19 60.08 391.34 247.67 299.15 Paid up Equity Share Capital(face 59.03 56.22 59.03 56.22 56.22 value of Rs 10 each) Earnings per share (Not annualised) Basic Earnings per share - Before Exceptional Items (Rs) 12.69 12.21 49.68 41.43 51.83 Basic Earnings per share - (Rs) 20.38 10.69 69.08 44.05 53.21 Diluted Earnings per share - (Rs) 20.38 9.94 69.08 41.46 49.40 Notes: 1. The Income from Operations for the quarter at Rs 1112.57 crores was 37%higher than the corresponding quarter of the previous year. The increase isdriven by higher branded tea sales coupled with inclusion of income pertainingto the acquisitions of Jemca and Eight O' Clock Coffee. Profit before Tax fromOperations at Rs 149.86 crores increased by 56% over the same period of theprevious year. 2. Interest on borrowings for acquisition includes payouts on account ofpurchase of Energy Brands Inc., Eight O' Clock Coffee, Jemca & Good Earth. 3. Exceptional items during the quarter includes profit on sale ofinvestments in the holding company (Rs 63.54 crores) partly offset byamortization of amounts expended on Employee Separation Scheme in the holdingcompany and an Indian subsidiary (Rs 2.45 crores), amortization of loan costs inan overseas subsidiary (Rs 16.05 crores) and reorganization expenses in anoverseas subsidiary (Rs 2.68 crores). 4. Under Indian GAAP, The Tetley Group's (the Company's 77.78% UKsubsidiary) turnover for the third quarter of its Financial Year 2006/07 was Rs604.82 crores compared to Rs 532.08 crores in the corresponding quarter of theprevious year. The Profit before Tax, interest on acquisitions and exceptionalitems was Rs 65.21 crores compared to Rs 45.38 crores in the previous year'scorresponding quarter. PAT at Rs 21.41 crores was however lower than previousyears figure of Rs 30.31 crores mainly on account of interest charge due toacquisition of Energy Brands Inc. 5. The holding company has through The Tetley Group acquired a 25% stake inEnergy Brand Inc, USA in October 2006 with a 5% stake being acquired by asubsidiary of Tata Sons. The above results include the pro rata share of resultsof Energy Brand Inc, which is an associate company. 6. The share of profit/(loss) in associated undertaking of EstateManagement Services Ltd and Joekels, South Africa has not been considered forthe current quarter, as the same was not yet available. 7. Previous period's figures have been regrouped, to the extent necessary,to conform to current period's figures. 8. The aforementioned results were reviewed by the Audit Committee of theBoard on January 30, 2007 and subsequently taken on record by the Board ofDirectors at its meeting held on January 31, 2007. Ratan N Tata (Chairman) Mumbai: January 31, 2007 Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for three months ended December 31, 2006 Rs in crores Previous Three months ended Nine months ended Year ended December 31 December 31 March 31, 2006 2005 2006 2005 2006 1 Segment Revenue (a)Tea 289.81 277.89 817.82 768.33 979.76 (b)Others 0.10 0.52 0.30 1.70 1.92 289.91 278.41 818.12 770.03 981.68 Less : Inter Segment Revenue - - - - - Net Segment Revenue 289.91 278.41 818.12 770.03 981.68 2 Segment Results (a)Tea 60.57 59.78 200.68 185.58 205.66 (b)Others (0.04) 0.57 0.04 (0.75) (0.69) 60.53 60.35 200.72 184.83 204.97 Less : Interest (net) 2.67 2.83 9.47 7.25 8.97 Less : Interest on borrowing for acquisition 12.41 - 12.41 - - Add : Unallocable income/(unallocable expenditure) (net) 59.92 11.64 163.23 26.54 34.52 Total Profit before Tax 105.37 69.16 342.07 204.12 230.52 3 Segment Capital Employed (a)Tea 413.94 346.50 413.94 346.50 315.91 (b)Others 0.03 - 0.03 - (0.48) Notes: 1 The definitions of the internal business segmentation and the activities encompassed therein are as follows: Tea : Cultivation & manufacture of black tea and instant tea, tea buying / blending and sale of tea in bulk or value added form. Others : Cultivation & production of coffee, other minor crops, trading in commodities etc. 2 The segment wise revenue, results and capital employed figures relate to the respective amounts directly identifiable to each of the segments. Unallocable expenditure includes expenses incurred on common services at the corporate level and relate to the Company as a whole, unallocable income includes income from investments and exceptional items (net). Ratan N Tata Mumbai: January 31, 2007 (Chairman) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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