The Hindu Business Line : Tata Tea PAT soars 90.69%

Mr Percy Siganporia, Managing Director, Tata Tea Ltd (right), and Mr L. Krishna Kumar, Senior Vice-President, Finance & IT, at a press conference in Mumbai on Monday. — Shashi Ashiwal

Mumbai , July 25

TATA Tea Ltd (TTL) on Monday reported a 90.69 per cent rise in profit after tax for the quarter ended June 30, 2005 to Rs 42.81 crore from the previous corresponding Rs 22.45 crore. Its income from operations was up 8.49 per cent to Rs 223.22 crore (Rs 205.75 crore for the year ago period).

Besides increased operational income and reduced interest and depreciation, off help to figures was the Rs 5.92-crore (Rs 2.24 crore) income from investment and an exceptional income of Rs 8.94 crore. "The company has with effect from April 1, 2005, transferred as a going concern a portion of its undertaking comprising 16 estates in south India to Kanan Devan Hills Plantations Company Pvt Ltd on the basis of an independent valuation, which has resulted in a profit of Rs 10.72 crore,'' TTL's official statement explained.

At a press briefing here, Mr P. Siganporia, Managing Director, pointed out that the quarter's topline growth was despite the sale of south Indian plantations and lower tea prices. Of the eight plantations in the South that continue to be with TTL, six are likely to be sold to Tata Coffee for Rs 50-55 crore while suitors are being sought for the other two.

No sale plans have been announced for the company's north Indian estates but an experiment that seeks to introduce a paradigm shift in cultivation pattern is currently on at a couple of plantations even as they remain under Tata ownership.

Mr Siganporia said that tea prices, lower by Rs 4.5-5 / kg on a Y-o-Y basis in the South and by Rs 5-6 in the North, could continue through the year.

With Tetley battling aggressive price cut by competition in the UK, TTL's consolidated income from operations was modestly up at Rs 716.69 crore (Rs 707 crore). However, given Tetley maintaining its prices and market share, consolidated profits were up at Rs 88.33 crore (Rs 56.03 crore).

Besides profit from sale of south Indian estates, consolidated profit also drew strength from a curtailment gain of Rs 15.24 crore, following the closure of the Tetley GB defined benefit scheme, the statement said.

Shares of Tata Tea moved up to Rs 671.35 on BSE today from the previous close of Rs 665.35.

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