31st Oct 2006 11:24
Tata Tea Limited31 October 2006 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for three months ended September 30, 2006 Three months ended Six months ended Previous Year ended September 30 September 30 31st March, 2006 2005 2006 2005 2006 Income from Operations 274.00 255.26 528.35 491.72 982.05 Total Expenditure 202.65 187.32 401.33 379.94 806.26 (a) (Increase) / (34.07) (29.65) (45.16) (32.19) 11.60 Decrease in stock (b) Purchase for 95.04 75.34 179.11 140.89 279.93 trading/Consumption of Raw Materials (c) Staff Costs 50.55 50.09 94.90 99.56 167.86 (d) Advertisement 26.06 22.69 42.57 40.59 89.99 and Sale charges (e) Other Expenditure 65.07 68.85 129.91 131.09 256.88 Profit before 71.35 67.94 127.02 111.78 175.79 Interest and Depreciation Interest (Net) 3.85 2.41 6.80 4.42 8.97 Depreciation 4.79 5.45 9.33 9.89 19.43 Profit before Tax 62.71 60.08 110.89 97.47 147.39 from Operations Income from 48.78 24.31 60.01 30.23 57.96 Investments (Net) Profit before Tax 111.49 84.39 170.90 127.70 205.35 and exceptional items Exceptional 68.00 (1.68) 65.80 7.26 25.17 Income/(Expenditure) (Net) Profit before Tax 179.49 82.71 236.70 134.96 230.52 Provision for Taxation (a) Current 14.98 19.21 27.38 28.34 43.74 (b) Deferred (0.06) 0.07 (0.36) (0.71) (2.95) (c) Fringe Benefit Tax 0.65 0.51 1.20 1.00 2.80 Profit after Tax 163.92 62.92 208.48 106.33 186.93 Paid up Equity 56.22 56.22 56.22 56.22 56.22 Share Capital(face value of Rs 10 each) Reserves excluding - - - - 1,083.18 Revaluation Reserves Earnings per 29.16 11.19 37.08 18.91 33.25 share(Not annualised) - Rs Aggregate of Non Promoter Shareholdings -Number of Shares 39,941,538 39,821,538 39,941,538 39,821,538 39,941,538 -Percentage of 71.05% 70.83% 71.05% 70.83% 71.05% Share holding Notes: 1. Exceptional items during the quarter represent profit on sale of investments of Rs 70.24 crs net of amortization of amounts incurred on Employee Separation Scheme of Rs 2.24 crs. 2. The Accounting Standard AS 15 (revised 2005) on Employee Benefits has become mandatory with effect from April 1, 2006. The past liability in terms of the transitional provisions of the Standard would be adjusted against the opening reserves during the financial year. Provision for the current period has been made in these results based on the revised Standard. 3. In view of the seasonality of the cropping pattern in the North India Plantation operations and in accordance with the accounting practice consistently followed in the past for quarterly and half yearly results, stock of teas in the North India Plantation Operations as on September 30, 2006 has been valued at the lower of estimated cost of production (full year production and expenditure) and net realizable value. 4. Particulars of complaints received from the investors during the quarter, complaints resolved and those pending are as follows: Particulars of Complaints Numbers Outstanding as on July 1, 2006 Nil Received during the quarter Nil Resolved during the quarter Nil Outstanding as on September 30, 2006 Nil 5. The Company has made an investment of 33.2% in Consolidated Coffee Inc, USA (a Company jointly owned with Tata Coffee Ltd and Tata Enterprises (Overseas) AG) to acquire the 100% holding Company of Eight O Clock Coffee business. 6. The Company has through the Tetley Group acquired 25% stake in Energy Brands Inc (EBI), USA, during October 2006. For this purpose it has made additional investments through its wholly owned subsidiaries in the Tetley Group aggregating to Rs 823 crs. Tata Sons Ltd has through its wholly owned subsidiary acquired 5% stake in EBI. 7. Previous period's figures have been recast to include the performance of erstwhile Tata Tetley Ltd, which had amalgamated with the Company effective 1st April 2005 and have been regrouped to the extent necessary to conform to the current period's figures. 8. The aforementioned results were reviewed by the Audit Committee of the Board on October 26, 2006 and subsequently taken on record by the Board of Directors at its meeting held on October 31, 2006. The statutory auditors of the company have audited these results. Ratan N Tata (Chairman) Mumbai: October 31, 2006 Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for six months ended September 30, 2006 Rs in crores Three months ended Six months ended Previous Year ended September 30 September 30 March 31, 2006 2005 2006 2005 2006 1 Segment Revenue (a)Tea 273.77 254.38 528.01 489.83 979.76 (b)Others 0.09 1.16 0.20 1.79 1.92 273.86 255.54 528.21 491.62 981.68 Less : Inter Segment Revenue - - - - Net Segment Revenue 273.86 255.54 528.21 491.62 981.68 2 Segment Results (a)Tea 77.23 75.78 140.11 125.80 205.66 (b)Others (0.01) (0.55) 0.08 (1.32) (0.69) 77.22 75.23 140.19 124.48 204.97 Less : Interest (net) 3.85 2.41 6.80 4.42 8.97 Add : Unallocable income / (unallocable 106.12 9.89 103.31 14.90 34.52 expenditure) (net) Total Profit before Tax 179.49 82.71 236.70 134.96 230.52 3 Segment Capital Employed (a)Tea 403.39 390.58 403.39 390.58 315.91 (b)Others 0.07 1.65 0.07 1.65 (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: October 31, 2006 (Chairman) Unaudited Consolidated Financial Results ( Provisional )for the three months ended September 30, 2006 Rs in crores Three months ended Six months ended Previous September 30 September 30 Year ended 2006 2005 2006 2005 March 31, 2006 Income from Operations 973.96 778.81 1772.88 1495.50 3123.92 Income from Investments (Net) 40.98 19.04 48.43 21.64 26.94 Total Income 1014.94 797.85 1821.31 1517.14 3150.86 Total Expenditure 793.83 617.26 1435.05 1195.73 2561.45 Profit before Interest and Depreciation 221.11 180.59 386.26 321.41 589.41 Interest (Net) 47.15 24.36 74.59 50.39 102.43 Depreciation 25.77 18.37 45.98 36.13 75.84 Profit before Tax and Exceptional Items 148.19 137.86 265.69 234.89 411.14 Exceptional Income / (Expenditure) (Net) 66.96 (1.97) 65.15 21.91 7.26 Profit before Tax 215.15 135.89 330.84 256.80 418.40 Provision for Taxation 26.79 38.40 59.03 70.98 117.86 Profit after Tax 188.36 97.49 271.81 185.82 300.54 Share of Profit/(Loss) from Associates 10.65 7.58 9.71 7.58 11.70 Minority Interest in Consolidated Profit 4.93 3.86 7.37 5.81 13.09 Group Consolidated Net Profit 194.08 101.21 274.15 187.59 299.15 Paid up Equity Share Capital(face value 56.22 56.22 56.22 56.22 56.22 of Rs 10 each) Earnings per share (Not annualised) Basic Earnings per share - Rs 34.52 18.00 48.76 33.37 53.21 Diluted Earnings per share - Rs 34.17 17.31 47.50 31.52 49.40 Notes: 1. The consolidated Total Income for the quarter at Rs 1014.94 crores was27% 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 Good Earth, Jemca and Eight O Clock Coffee. 2. The share of profit/(loss) in an associated undertaking has not beenconsidered for the current quarter, as the same was not yet available. 3. Exceptional items during the quarter represent profit on sale ofinvestments in the holding company partly offset by amortization of amountsexpended on Employee Separation Scheme in the holding company and an Indiansubsidiary. 4. Under Indian GAAP, The Tetley Group's (the Company's 98.58% UKsubsidiary) turnover for the second quarter of its Financial Year 2006/07 at Rs542.36 crores was 11% higher than the corresponding quarter of the previousyear. The Profit before Tax and exceptional items was Rs 28.00 crores and theProfit after Tax was Rs 18.75 crores compared to Rs 43.52 crores and Rs 28.31crores in the previous year's corresponding quarter. Lower profitability duringthe quarter reflects higher tea and promotional costs and higher interest costsdue to recent acquisitions. 5. The holding Company along with its subsidiary Tata Coffee Ltd has,during the quarter, invested in the equity of Consolidated Coffee Inc (CCI) toacquire the 100% holding company of Eight O Clock Coffee business in USA.Resultantly, CCI has become a 58.6% subsidiary of the holding Company. 6. 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. 7. The Tetley Group has signed a definitive agreement to acquire a 33%stake in Joekel, South Africa. 8. Previous period's figures have been regrouped, to the extent necessary,to conform to current period's figures. 9. The aforementioned results were reviewed by the Audit Committee of theBoard on October 26, 2006 and subsequently taken on record by the Board ofDirectors at its meeting held on October 31, 2006. Ratan N Tata (Chairman)Mumbai: October 31, 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TGBL.L