The Hindu Business Line : Tata Tea Q3 income up 4%

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Kolkata Jan. 31 Despite an exit from a major part of south India plantations, Tata Tea Ltd's income from operations at Rs 291 crore during the quarter ended December 31, 2006, showed approximately four per cent improvement over the same period of the last year.

During the period, the operating profits at Rs 48.48 crore improved by six per cent. The profit before tax and exceptional items was lower at Rs 44.02 crore (Rs 48.94 crore) due to interest payment on borrowings to finance the acquisition of Energy Brands Inc. Exceptional income during the quarter represented profits on sale of investments of Rs 63.54 crore net of amortisation on Employee Separation Scheme of Rs 2.19 crore.

The consolidated worldwide income from operations for the third quarter at Rs 1,113 crore registered an improvement of 37 per cent over the same period of the last year.

The company sources attributed this to higher branded tea sales coupled with the inclusion of income pertaining to the acquisition of Jemca and Eight O Clock Coffee. While the profit before tax from operations at Rs 149.86 crore increased by 56 per cent, the Group Consolidated profit after tax at Rs 117.19 crore posted 95 per cent growth.

Under Indian GAPP, The Tetley Group's (the company's 77.87-per cent subsidiary in the UK) turnover for the third quarter amounted to Rs 604.82 crore (Rs 532.08 crore), profit before tax, interest on acquisitions and exceptional items Rs 65.21 crore (Rs 45.38 crore) and profit after tax Rs 21.41 crore (Rs 30.31 crore). The company sources attributed the drop in PAT to the cost of interest on acquisitions.

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