TGBL.L Regulatory News (TGBL)

17 Jul 2007 11:06

Tata Tea Limited17 July 2007 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road, Kolkata-700020 Audited Financial Results for three months ended June 30, 2007 Rs in crores Previous Three months ended Year ended June 30 31st March 2007 2006 2007 Income from Operations 290.01 254.35 1,070.35 Total Expenditure 227.91 198.68 872.67 (a) (Increase) / Decrease in stock 15.81 (11.09) (15.59) (b) Purchase for trading / Consumption of 76.81 84.51 355.18 Raw Materials (c) Staff Costs 48.00 44.35 179.15 (d) Other Expenditure 87.29 80.91 353.93 Profit before Interest and Depreciation 62.10 55.67 197.68 Interest (Net) 2.75 2.95 11.63 Depreciation 4.77 4.54 18.54 Profit before Tax from Operations 54.58 48.18 167.51 Income from Investments (Net) 13.84 11.23 75.76 Interest on loans for acquisition (10.89) - (26.68) Profit before Tax and exceptional items 57.53 59.41 216.59 Exceptional Income/(Expenditure) (Net) 0.85 (2.20) 133.18 Profit before Tax 58.38 57.21 349.77 Provision for Taxation (a) Current 15.04 12.40 40.30 (b) Deferred (0.26) (0.30) 0.25 (c) Fringe Benefit Tax 0.60 0.55 2.65 Profit after Tax 43.00 44.56 306.57 Paid up Equity Share Capital(face value of 61.84 56.22 59.03 Rs 10 each) Reserves excluding Revaluation Reserves - - 1,462.83 Earnings per share(Not annualised) - Rs 7.06 7.93 53.56 Aggregate of Public Shareholdings (excludes shares held against GDRs) -Number of Shares 39,928,646 39,859,496 39,917,866 -Percentage of Share holding 64.56% 70.90% 67.62% Notes: 1. Income from operations for the quarter at Rs 290.01 crores grew by 14% over the corresponding period of the previous year mainly driven by increase in the branded tea volumes by 18%. Operating profit at Rs 54.58 crores improved by 13%. Whilst Profit before Tax at Rs 58.38 was 2% higher than the previous year, Profit after Tax at Rs 43.00 crores decreased by 3.5%, reflecting the impact of interest on loans taken for acquisition and higher effective tax rate. 2. Interest on loans taken for acquisition represents interest on bridge loans to finance acquisition of 25% stake in Energy Brand Inc in the previous year by the company's subsidiary the Tetley Group. These loans are expected to be repaid during the year. The Tetley Group has entered into a conditional agreement for sale of this stake to Coca Cola Corporation during the year. 3. Exceptional items during the quarter represent profit on sale of land/assets in South India of Rs 3.05 Crores net of amortization of amounts incurred on Employee Separation Scheme of Rs 2.20 Crores. 4. The Company has filed an application before the Hon'ble High Court of Calcutta under Section 391, 394 and other applicable provisions of the Companies Act, 1956 for transfer of North India Plantation Business (NIPO) to a New Company viz. Amalgamated Plantations Private Ltd. (APPL). The scheme has been approved by the shareholders of the company as well as that of APPL on April 5, 2007. As per the scheme, North India Plantation Operations is to be transferred to APPL with effect from April 1, 2007 for a total consideration of Rs.359 Crores in addition to transfer of agreed current assets and current liabilities and certain other related assets at mutually agreed values. As per the Scheme, the business operations of NIPO are being carried out by the company in trust on behalf of APPL from April 1, 2007 onwards. The petition for sanction of the scheme is now pending before the Hon'ble High Court of Calcutta. Pending completion of formalities and receipt of final approval, as a matter of prudence, the accounts for the quarter ended 30th June, 2007 includes NIPO loss of Rs 0.85 crores and turnover of Rs 9.34 crores (net of internal transfers of Rs 42.20 crores). 5. During the quarter, the Company decided to acquire a 15% stake in Mount Everest Mineral Water Ltd (MEMW) by subscribing to a preferential issue at a negotiated price of Rs 140 per share which has since been completed. An additional 9.15% stake, at Rs 140 per share, is agreed to be purchased from the current promoters of MEMW. This will be followed by an open offer for 20% of the shares at the rate of Rs 140 per share, as prescribed by SEBI. 6. During the quarter, the outstanding 28, 10,000 share warrants issued to Tata Sons Ltd were converted to equity shares at a price of Rs 726.45 per share, computed in terms of the applicable regulations. The proceeds from the issue of shares have been utilized in connection with the financing of the investments in Energy Brands Inc. The Earnings per Share for the quarter have been computed considering the pro-rata increase in the share capital. 7. 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 April 1, 2007 Nil Received during the quarter 1 Resolved during the quarter 1 Outstanding as on June 30, 2007 Nil 8. 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 June 30, 2007 has been valued at the lower of estimated cost of production (full year production and expenditure) and net realizable value. 9. During this period the company was engaged primarily in manufacturing and trading in tea and is managed organizationally as a single unit. Accordingly the company is a single segment unit. 10. Previous period's figures have been regrouped, to the extent necessary, to conform to current period's figures. 11. The aforementioned results were reviewed by the Audit Committee of the Board on July 16, 2007 and subsequently taken on record by the Board of Directors at its Meeting held on July 17, 2007. The statutory auditors of the company have audited these results. Ratan N Tata (Chairman) Mumbai: July 17, 2007 Unaudited Consolidated Financial Results ( Provisional )for the three months ended June 30, 2007 Rs in crores Three months ended Previous June 30 Year ended 2007 2006 March 31, 2007 Income from Operations 1018.84 798.92 4044.55 Total Expenditure 852.25 641.22 3312.85 Profit before Interest and Depreciation 166.59 157.70 731.70 Interest (Net) 29.01 23.63 106.82 Depreciation 25.75 20.21 96.71 Profit before Tax from Operations 111.83 113.86 528.17 Income from Investments (Net) 9.95 7.45 58.67 Exchange gain on restatement of foreign 12.44 - 34.72 currency loans Profit before interest on acquisitions/ 134.22 121.31 621.56 exceptional items Interest on borrowing for acquisitions (65.61) (3.81) (166.11) Exceptional Income/(Expenditure) (Net) (3.87) (1.81) 110.16 Profit before Tax 64.74 115.69 565.61 Provision for Taxation 14.03 32.24 107.60 Profit after Tax 50.71 83.45 458.01 Share of Profit/(Loss) from Associates (3.36) (0.94) 17.95 Minority Interest in Consolidated Profit 1.67 2.44 32.61 Group Consolidated Net Profit 45.68 80.07 443.35 Paid up Equity Share Capital(face value of Rs 61.84 56.22 59.03 10 each) Earnings per share(Not annualised) Basic Earnings per Share - Rs 7.50 14.24 77.46 Diluted Earnings per share - Rs 7.50 13.33 77.46 Notes: 1. The consolidated Total Income for the quarter at Rs 1018.84 crores was28% higher than the corresponding quarter of the previous year. The increase isdriven by higher branded tea sales across the business and inclusion of EightO'Clock Coffee partly offset by adverse exchange translation compared to thecorresponding quarter of the previous year. 2. The Profit before Tax from Operations for the quarter at Rs 111.83 croreswas lower compared to the corresponding quarter of the previous year at Rs113.86 crores mainly due to a mix of higher advertising and promotionalexpenditure during the quarter and adverse exchange rates. Consequently and as aresult of interest on borrowings for acquisitions the Group's Consolidated NetProfit at Rs 45.68 crores was lower than the previous year's figure of Rs 80.07crores. The interest on borrowings for acquisition relates substantially to theloans taken for acquisition of a minority stake in Energy Brands Inc. by theTetley Group. 3. The Tetley Group has conditionally agreed to sell its stake in EnergyBrands Inc (EBI), an Associate, for an approximate consideration of $ 1.0billion (subject to adjustment for certain transactions and other costs) to TheCoca Cola Company. This transaction is expected to result in a pre tax profitof approximately $ 415 million. 4. Exceptional items during the quarter mainly represent amortization ofamounts expended on Employee Separation Scheme in the holding company and anIndian subsidiary and reorganization costs in an overseas subsidiary. Theprevious year's figure included amortization of amounts expended on EmployeeSeparation Scheme in the holding company and an Indian subsidiary and sale ofproperty by an Indian subsidiary. 5. The share of profit/(loss) of Estate Management Services Private Ltd, SriLanka, an associated undertaking, has not been considered for the currentquarter, as the same was not yet available. 6. Under Indian GAAP, The Tetley Group's (the Company's 78.78% UKsubsidiary) turnover for the first quarter of its Financial Year 2007/08 at Rs526.28 crores was 6% higher than the corresponding quarter of the previous year.The Profit before Tax prior to interest on acquisition was Rs 32.52 crorescompared to Rs 56.18 crores in the previous year. 7. The Earnings per Share for the quarter have been computed considering thepro-rata increase in the share capital of the holding Company, resulting fromthe conversion of share warrants into equity shares 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 July 16, 2007 and subsequently taken on record by the Board ofDirectors at its meeting held on July 17, 2007. Ratan N Tata (Chairman)Mumbai: July 17, 2007 This information is provided by RNS The company news service from the London Stock Exchange