Tata Global Beverages Ltd (TGBL) reported standalone net profit of Rs 50.46 crore in the quarter ended September 2011 (Rs 30.37 crore), with standalone revenue of Rs 498.16 crore (Rs 440.47 crore).
The company reported consolidated group net profit of Rs 76.95 crore in Q2 2011 (Rs 51.61 crore). The consolidated group income of Rs 1,629 crore in Q2 2011 represents a 12 per cent jump from the same period last year (Rs 1,453 crore). Around 70 per cent of the revenue is from overseas markets.
Mr Percy Siganporia, MD, Tata Beverages, said, “In India, we have seen volume and profit growth. We have achieved value leadership in the last three months, building on the volume leadership that we already enjoyed.”
The company had effected some pricing increases in end-July to offset commodity cost increase, the impact of which was visible during this quarter, explained its MD.
Mr Siganporia added, “There are certain macro economic factors against which this growth has been achieved — the double digit growth is despite volatility on several counts including currency, as we are exposed to the dollar, the UK pound and to some extent, the Russian rouble.”
On commodity prices, he said, “We have seen some unprecedented volatility in commodity prices. We have seen intra-day swings in coffee prices, for example, that we don't see for years put together, during this quarter. Such volatility brings risks and opportunities, if you get the commodity strategy right.”
In the United Kingdom, the company claims, citing Nielsen data, to have achieved market leadership in the Green Tea segment during the quarter. Tetley sales have overtaken that of Twinnings during the quarter in that market, said Mr Siganporia.