10 Aug 2016 10:46
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com, Website: www.tataglobalbeverages.com
Unaudited Financial Results
for the three months ended June 30, 2016
Rs. In Crores
Particulars | Unaudited Three Months Ended | |
June 30 2016 | June 30 2015 | |
Income from Operations | ||
Net Sales / Income from Operations (Net of excise duty) | 804.10 | 783.82 |
Other Operating Income | 15.98 | 18.50 |
Total Income from Operations (Net) | 820.08 | 802.32 |
a) Cost of materials consumed | 463.04 | 477.71 |
b) Purchase of stock-in-trade | 1.31 | 1.13 |
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | 66.36 | 41.44 |
d) Employee benefits expense | 46.10 | 42.70 |
e) Depreciation & Amortization expense | 5.56 | 5.41 |
f) Other Expenses | 127.18 | 125.73 |
Total Expenses | 709.55 | 694.12 |
Profit from Operations before Other Income, Finance Cost & Exceptional Items | 110.53 | 108.20 |
Other Income | 12.74 | 3.84 |
Profit from ordinary activities before Finance cost & Exceptional Items | 123.27 | 112.04 |
Finance Cost | (12.18) | (11.81) |
Profit from ordinary activities before Tax | 111.09 | 100.23 |
Tax Expense | (37.83) | (34.79) |
Net Profit After Tax (A) | 73.26 | 65.44 |
Paid up Equity Share Capital (face value of Rs. 1 each) | 63.11 | 63.11 |
Earnings per share (Basic & Diluted) (not annualised) - Rs | 1.16 | 1.04 |
Other Comprehensive Income (B) | 64.01 | (56.91) |
Total Comprehensive Income (A+B) | 137.27 | 8.53 |
Notes:
1. The Company has adopted for the first time, Indian Accounting Standards (Ind AS) from 1st April 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 - Interim Financials Reporting prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and the other accounting principles generally accepted in India. Financial results of all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS 34.
2. For the quarter, Income from operations at Rs. 820 Crores increased over corresponding quarter of previous year reflecting improved performance in the branded tea operations. Profit from operations is higher than corresponding quarter of previous year reflecting improved operating performance. Resultantly, Profit after tax is higher than corresponding quarter of previous year.
3. (a). Reconciliation between standalone financial results, as previously reported referred to as previous GAAP and Ind AS are as under:
Adjustments under Ind AS |
| ||||
In Rs. Crores | Previous GAAP | Revenue
(Note i) | Amortised cost adjustment on Long term borrowings (Note ii) |
Others
(Note iii) | Ind AS |
Q1 2015 | Q1 2015 | ||||
Total Income from Operations (Net) | 823.15 | (20.83) | - | - | 802.32 |
Profit from Operations | 106.30 | - | - | 1.90 | 108.20 |
Net Profit after Tax | 67.84 | - | (3.93) | 1.53 | 65.44 |
Note i - Expenditure required to be offset from sales on account of measurement criteria for Revenue.
Note ii - Recognition of finance cost under effective interest rate method for redemption premium on debentures, which was adjusted to reserves under previous GAAP.
Note iii - Others mainly include agricultural produce required to be fair valued, impact of actuarial gain/ losses and impact of fair value measurement of financial instruments.
(b) Other comprehensive income comprises of income / (expenditure) for (i) fair value changes in the carrying value of investments of Rs 65.43 Crores [PY - (Rs 53.96 Crores)] which, under previous GAAP was accounted at cost (ii) amount accounted in the hedging reserves of (Rs 0.53 Crores) [PY - (Rs 2.52 Crores)] which, under previous GAAP, were accounted directly in the reserves and (iii) actuarial gain/(loss) on employee benefits of (Rs 0.89 Crores) [PY - (Rs 0.43 Crores)] which, under the previous GAAP, were accounted in the Statement of Profit and Loss.
4. The Company has organized its business into Branded Segment and Non Branded Segment. Branded Segment is further categorized as Branded Tea, Branded Coffee and the residual as Branded Others from 1st April 2016. As per the threshold limits prescribed under Indian Accounting Standard (Ind AS-108) on "Segment Reporting" prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and the other accounting principles generally accepted in India, the Company's reportable activity falls within a single business segment and hence the disclosure requirements are not applicable.
5. Information pursuant to requirement of Regulation 54(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements Regulation 2015) for quarter ended June 30, 2016:
Particulars | As at June 30, 2016 |
Security on Outstanding Debentures of Rs. 325 crores | Secured by way of a first mortgage on certain immovable assets of the company and partly by pledge of shares of certain companies held as investments.
|
6. The aforementioned results were reviewed by the Audit Committee of the Board on August 8, 2016 and subsequently taken on record by the Board of Directors at its Meeting held on August 9, 2016. The statutory auditors of the company have conducted limited review on these results.
Mumbai, August 9, 2016 Cyrus P Mistry
(Chairman)
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com, Website: www.tataglobalbeverages.com
Unaudited Consolidated Financial Results
for the three months ended June 30, 2016
Rs. In Crores
Particulars | Unaudited Three Months Ended | |
June 30 2016 | June 30 2015 | |
Income from Operations | ||
Net Sales / Income from Operations (Net of excise duty) | 1711.48 | 1648.12 |
Other Operating Income | 22.73 | 24.06 |
Total Income from Operations (Net) | 1734.21 | 1672.18 |
a) Cost of materials consumed | 780.24 | 831.84 |
b) Purchase of stock-in-trade | 67.88 | 58.85 |
c) Changes in inventories of finished goods, work in progress and stock-in-trade | 101.97 | 41.13 |
d) Employee benefits expense | 208.70 | 191.87 |
e) Depreciation & Amortization expenses | 36.25 | 29.62 |
f) Advertisement and Sales Charges | 105.05 | 141.92 |
g) Other Expenses | 231.88 | 223.95 |
Total Expenses | 1531.97 | 1519.18 |
Profit from Operations before Other Income, Finance Cost & Exceptional Items | 202.24 | 153.00 |
Other Income | 21.04 | 13.07 |
Profit from ordinary activities before Finance cost & Exceptional Items | 223.28 | 166.07 |
Finance Cost | (22.04) | (21.18) |
Profit from ordinary activities after Finance cost but before Exceptional Items | 201.24 | 144.89 |
Exceptional items (Net) | (1.74) | (2.78) |
Profit from ordinary activities before Tax | 199.50 | 142.11 |
Tax Expense | (73.21) | (56.16) |
Net Profit after Tax | 126.29 | 85.95 |
Share of Profit/(Loss) from JV's and Associates | (6.77) | (7.29) |
Group Consolidated Net Profit(A) | 119.52 | 78.66 |
Attributable to : | ||
Owners of the Parents | 103.65 | 72.33 |
Non Controlling interest | 15.87 | 6.33 |
Paid-up equity share capital (Face value of Re 1 each) | 63.11 | 63.11 |
Earnings per share (Basic & Diluted) (not annualised) - Rs | 1.64 | 1.15 |
Other Comprehensive Income (B) | (148.89) | 265.42 |
Total Comprehensive Income (A + B) | (29.37) | 344.08 |
Attributable to : | ||
Owners of the Parents | (19.32) | 292.50 |
Non Controlling interest | (10.05) | 51.58 |
Notes:
1. The Company has adopted for the first time, Indian Accounting Standards (Ind AS) from 1st April 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 - Interim Financials Reporting prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and the other accounting principles generally accepted in India. Financial results of all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS 34.
2. For the quarter, Income from operations at Rs 1734 Crores increased by 4% as compared to corresponding quarter of the previous year due to improvement in both branded and non-branded operations. Profit from operations at Rs 202 Crores is higher by 32 % than the comparative quarter of the previous year due to improved performance and phased outlay on initiatives. Group Consolidated net profit at Rs 120 crores is higher by 52% compared with the previous year.
3. Exceptional items for the current and corresponding quarter of the previous year represents cost relating to business restructuring.
4. (a) Reconciliation between consolidated financial results, as previously reported referred to as previous GAAP and Ind AS are as under:
|
Adjustments under Ind AS | ||||||
In Rs Crores | Previous GAAP | Revenue
(Note i) | Equity Accounting of JV results (Note ii) | Agricultural Produce
(Note iii) | Amortised cost adjustment on Long term Borrowings (Note iv) | Others
(Note v) | Ind AS |
June 30, 2015 | June 30, 2015 | ||||||
Total Income from Operations (Net) | 2028.99 | (198.72) | (158.09) | - | - | - | 1672.18 |
Profit from Operations | 153.21 | - | 2.62 | (7.83) | - | 5.00 | 153.00 |
Group Consolidated Net Profit before Minority interest | 91.06 | - | (0.66) | (5.57) | (3.93) | (2.24) | 78.66 |
Note i - Expenditure required to be offset from sales on account of measurement criteria for Revenue.
Note ii - Joint ventures are required to equity accounted instead of proportionate consolidation.
Note iii - Agricultural produce are required to be fair valued.
Note iv - Recognition of finance cost under effective interest rate method for redemption premium on debentures, which was adjusted to reserves under previous GAAP.
Note v - Others mainly include expenditure capitalised, depreciation & amortisation adjustments and impact on the results of Associates mainly on account of fair valuation of agricultural produce.
(b) Other comprehensive income comprises of income / (expenditure) for (i) amounts accounted in the foreign currency translation reserve account, hedging reserves and actuarial gains/losses on employee benefits of overseas entities cumulating to (Rs 214 Crores) [PY - Rs 321 Crores], which, under previous GAAP, were accounted directly in the reserves (ii) actuarial gain/(loss) on employee benefits of Indian entities of (Rs 2 Crores) [PY - (Rs 2 Crores)], which under the previous GAAP, were accounted in the Statement of Profit and Loss and (iii) fair value changes in the carrying value of investments of Rs 67 Crores [PY - (Rs 54 Crores)], which under the previous GAAP were accounted at cost.
5. The major part of the Holding Company's business arises from operations outside India and through its subsidiaries. In view of this the Company has opted to publish only consolidated results for the year as permitted under SEBI guidelines. The Total Income from Operations, Profit before tax and Profit after tax of the Holding Company's standalone financial results are given below :
In Rs Crores | Unaudited Three months ended | |
June 30, 2016 | June 30, 2015 | |
Total Income from Operations (Net) | 820.08 | 802.32 |
Profit before Tax | 111.09 | 100.23 |
Profit after Tax | 73.26 | 65.44 |
Total Comprehensive Income | 137.27 | 8.53 |
Earnings per share - Rs (not annualised for the quarter end) | 1.16 | 1.04 |
6. The aforementioned results were reviewed by the Audit Committee of the Board on August 8, 2016 and subsequently taken on record by the Board of Directors at its Meeting held on August 9, 2016. The Statutory Auditors of the company have conducted limited review of these results.
7. The Consolidated and Standalone result for the quarter ended June'2016 are available on the Bombay Stock Exchange website (URL: www.bseindia.com ), the National Stock Exchange website (URL: www.nseindia.com) and on the Company's website (URL: www.tataglobalbeverages.com ).
Mumbai, August 9, 2016 Cyrus P Mistry
(Chairman)
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com, Website: www.tataglobalbeverages.com
Consolidated Segment wise Revenue, Results, Assets and Liabilities for thequarter ended June 30, 2016
Rs. In Crores
Particulars | Three Months Ended | |
June 30 2016 | June 30 2015 | |
Segment Revenue | ||
Branded Business | ||
(a) Tea | 1213.05 | 1228.98 |
(b) Coffee | 296.63 | 245.65 |
(c) Others | 6.77 | 7.34 |
Total Branded Business | 1516.45 | 1481.97 |
Non Branded Business | 232.17 | 198.34 |
Total Segment Revenue | 1748.62 | 1680.31 |
Less: Inter Segment Sales | (14.41) | (8.13) |
Income from Operations (Net) | 1734.21 | 1672.18 |
Segment Results | ||
Branded Business | ||
(a) Tea | 164.07 | 164.96 |
(b) Coffee | 55.22 | 21.63 |
(c) Others | (3.40) | (4.52) |
Total Branded Business | 215.89 | 182.07 |
Non Branded Business | 39.02 | 18.93 |
Total Segment Results | 254.91 | 201.00 |
Add / Less | ||
i) Finance Cost | (22.04) | (21.18) |
ii) Other Un-allocable items, Other Income and Exceptional Items | (33.37) | (37.71) |
Profit before Tax | 199.50 | 142.11 |
Segment Assets | ||
Branded Business | ||
(a) Tea | 4293.73 | 4626.16 |
(b) Coffee | 1953.87 | 1853.70 |
(c) Others | 30.37 | 51.68 |
Total Branded Business | 6277.97 | 6531.54 |
Non Branded Business | 891.58 | 884.77 |
Total Segment Assets | 7169.55 | 7416.31 |
Unallocable Corporate Assets | 2917.83 | 3170.13 |
Total Assets | 10087.38 | 10586.44 |
Segment Liabilities | ||
Branded Business | ||
(a) Tea | 740.94 | 813.36 |
(b) Coffee | 147.63 | 148.60 |
(c) Others | 11.95 | 10.20 |
Total Branded Business | 900.52 | 972.16 |
Non Branded Business | 116.79 | 79.10 |
Total Segment Liabilities | 1017.31 | 1051.26 |
Unallocable Corporate liabilities | 1874.07 | 1739.73 |
Total Liabilities | 2891.38 | 2790.99 |
Notes:
a. The group has organised it's business into Branded Segment and Non Branded Segment. Branded Segment is further sub-categorised as Branded Tea, Branded Coffee and the residual as Branded Others. Accordingly, the group has reported its segment results for these segments. This complies with Ind AS - 108 - Segment reporting principles, and is made effective from 1st April, 2016 and the previous quarter numbers have been regrouped/reclassified.
b. Business Segments: The internal business segmentation and the activities encompassed therein are as follows:
i) Branded Business -
Branded Tea : Sale of branded tea and various value added forms
Branded Coffee : Sale of coffee in various value added forms
Branded Others : Sale of water products
ii) Non Branded Business - Plantation and Extraction business for Tea, Coffee and other produce.
Mumbai, August 9, 2016 Cyrus P Mistry
(Chairman)