TGBL.L Regulatory News (TGBL)

26 Jul 2006 14:45

Tata Tea Limited26 July 2006 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for three months ended June 30, 2006 Rs in crores Previous Three months ended Year ended June 30 31st March, 2006 2005 2006 Income from Operations 254.35 236.46 982.05 Total Expenditure 198.68 192.62 806.26 (a) (Increase) / Decrease in stock (11.09) (2.54) 11.60 (b) Purchase for trading / Consumption of Raw Materials 84.07 65.55 279.93 (c) Staff Costs 44.35 49.47 167.86 (d) Other Expenditure 81.35 80.14 346.87 Profit before Interest and Depreciation 55.67 43.84 175.79 Interest (Net) 2.95 2.01 8.97 Gross Profit after Interest but before Depreciation and Taxation 52.72 41.83 166.82 Depreciation 4.54 4.44 19.43 Profit before Tax from Operations 48.18 37.39 147.39 Income from Investments (Net) 11.23 5.92 57.96 Profit before Tax and exceptional items 59.41 43.31 205.35 Exceptional Income/(Expenditure) (Net) (2.20) 8.94 25.17 Profit before Tax 57.21 52.25 230.52 Provision for Taxation (a) Current 12.40 9.13 43.74 (b) Deferred (0.30) (0.78) (2.95) (c) Fringe Benefit Tax 0.55 0.49 2.80 Profit after Tax 44.56 43.41 186.93 Paid up Equity Share Capital(face value of 56.22 56.22 56.22 Rs 10 each) Reserves excluding Revaluation Reserves - - 1,083.18 Earnings per share(Not annualised) - Rs 7.93 7.72 33.25 Aggregate of Non Promoter Shareholdings -Number of Shares 39,941,538 39,751,538 39,941,538 -Percentage of Share holding 71.05% 70.71% 71.05% Notes: 1. Income from Operations increased by 7.5% compared to the same periodin the previous year. Whilst domestic brand sales grew by 6%, there were alsohigher auction and export sales. 2. Profit before tax and exceptional items increased more thanproportionately by 37%, driven by improved brand profitability, favourableimpact of restructuring of plantations and higher investment income. However,the increase in profit after tax is lower due to higher exceptional incomeduring corresponding quarter of the previous year which was tax exempt. 3. Exceptional items during the quarter represent amortization ofamounts incurred on Employee Separation Scheme. In the previous year,exceptional items included profit on sale of some of the company's estates inSouth India. 4. The Accounting Standard AS 15 (revised 2005) on Employee Benefits hasbecome mandatory with effect from April 1, 2006. The past liability in terms ofthe transitional provisions of the Standard would be adjusted against theopening reserves during the financial year. Provision has been made for thecurrent quarter on the basis of the revised Accounting Standard consequent towhich there is an additional charge of Rs 0.26 crores. 5. In view of the seasonality of the cropping pattern in the North IndiaPlantation operations and in accordance with the accounting practiceconsistently followed in the past for quarterly and half yearly results, stockof teas in the North India Plantation Operations as on June 30, 2006 has beenvalued at the lower of estimated cost of production (full year production andexpenditure) and net realizable value. 6. Particulars of complaints received from the investors during thequarter, complaints resolved and those pending are as follows : Particulars of Complaints Numbers Outstanding as on April 1, 2006 NilReceived during the quarter 1Resolved during the quarter 1Outstanding as on June 30, 2006 Nil 7. Previous period's figures have been recast to include the performanceof erstwhile Tata Tetley Ltd, which had amalgamated with the Company effectiveApril 1, 2005 and have been regrouped to the extent necessary to conform to thecurrent period's figures. 8. Tata Coffee Ltd, the Company's 50.67% Indian subsidiary, has signed adefinitive Agreement to acquire Eight O' Clock Coffee Company, USA for a totalconsideration of US $ 220 Mn which will be funded through a combination ofequity and non-recourse debt. The Company has decided to invest US $ 19.9 Mn inthe shares of Consolidated Coffee Inc. - USA, which will be the holding companyfor Eight 'O' Clock Coffee, during the second quarter of the current financialyear. In addition, the Board has also approved investment in the proposed rightsissue of partly convertible debentures of Tata Coffee Ltd. 9. The aforementioned results were reviewed by the Audit Committee of theBoard on July 24, 2006 and subsequently taken on record by the Board ofDirectors at its meeting held on July 26, 2006. The statutory auditors of thecompany have audited these results. R K Krishna Kumar (Vice Chairman) Mumbai: July 26, 2006 Tata Tea Limited Registered Office : 1 Bishop Lefroy Road Kolkata 700020 Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for three months ended June 30, 2006 Rs in crores Previous Year Three months ended ended June 30 March 31, 2006 2005 2006 1 Segment Revenue (a)Tea 254.24 235.45 979.76 (b)Others 0.11 0.63 1.92 254.35 236.08 981.68 Less : Inter Segment Revenue - - - Net Segment Revenue 254.35 236.08 981.68 2 Segment Results (a)Tea 62.88 50.02 205.66 (b)Others 0.09 (0.77) (0.69) 62.97 49.25 204.97 Less : Interest (net) 2.95 2.01 8.97 Add : Unallocable income / (unallocable expenditure) (2.81) 5.01 34.52 (net) Total Profit before Tax 57.21 52.25 230.52 3 Segment Capital Employed (a)Tea 329.61 348.34 315.91 (b)Others 0.13 1.40 (0.48) Notes: 1 The definitions of the internal business segmentation and the activities encompassed therein are as follows: Tea : Cultivation & manufacture of black tea and instant tea,tea buying / blending and sale of tea in bulk or value added form. Others : Cultivation & production of coffee, other minor crops, trading in commodities etc. 2 The segment wise revenue, results and capital employed figures relate to the respective amounts directly identifiable to each of the segments. Unallocable expenditure include expenses incurred on common services at the corporate level and relate to the Company as a whole, unallocable income includes income from investments and is net of exceptional items (net). R K Krishna Kumar Mumbai: July 26, 2006 (Vice Chairman) Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Unaudited Consolidated Financial Results ( Provisional ) for the three months ended June 30, 2006 Rs in crores Three months ended Previous June 30 Year ended 2006 2005 March 31, 2006 Income from Operations 798.92 716.69 3123.92 Income from Investments (Net) 7.45 2.60 26.94 Total Income 806.37 719.29 3150.86 Total Expenditure 641.22 578.47 2561.45 Profit before Interest and Depreciation 165.15 140.82 589.41 Interest (Net) 27.44 26.03 102.43 Gross Profit after Interest but before Depreciation and Taxation 137.71 114.79 486.98 Depreciation 20.21 17.76 75.84 Profit before Tax and Exceptional Items 117.50 97.03 411.14 Exceptional Income/(Expenditure) (Net) (1.81) 23.88 7.26 Profit before Tax 115.69 120.91 418.40 Provision for Taxation 32.24 32.58 117.86 Profit after Tax 83.45 88.33 300.54 Share of Profit/(Loss) from Associates (0.94) - 11.70 Minority Interest in Consolidated Profit 2.44 1.95 13.09 Group Consolidated Net Profit 80.07 86.38 299.15 Paid up Equity Share Capital(face value of Rs 56.22 56.22 56.22 10 each) Earnings per share(Not annualised) Basic Earnings per Share - Rs 14.24 15.36 53.21 Diluted Earnings per share - Rs 13.33 14.20 49.40 Notes: 1. The consolidated Total Income for the quarter at Rs 806.37 crores was12% higher than the corresponding quarter of the previous year. The increase isdriven by higher branded tea sales in both the domestic and internationalmarkets. 2 The Profit before Tax and Exceptional Items for the quarter at Rs 117.50crores was 21% higher than the corresponding quarter of the previous year.However, as a result of lower exceptional items during the current quarter ascompared to the same period previous year, the Group's Consolidated Net Profitat Rs 80.07 crores was lower than the previous year's figure of Rs 86.38 crores. 3. The share of profit/(loss) in Estate Management Services (Private) Ltd,Sri Lanka, an associate company, has not been considered for the current quarteras the same was not yet available. 4. Exceptional items during the quarter mainly represent amortization ofamounts expended on Employee Separation Scheme in the holding company and itssubsidiary Tata Coffee Ltd and sale of property by the subsidiary. The previousyear's figure included profit on sale of the Holding Company's undertakingcomprising of certain estates in South India net of expenses (Rs 10.72 crores)and curtailment gain in The Tetley Group on account of closure of their definedbenefit scheme (Rs 15.24) partly offset by amortization of amounts expended onEmployee Separation Scheme in the holding company and Tata Coffee Ltd (Rs 2.08crores). 5. Under Indian GAAP, The Tetley Group's (the Company's 98.58% UKsubsidiary) turnover for the first quarter of its Financial Year 2006/07 at Rs498.51 crores was 8% higher than the corresponding quarter of the previous year.Whilst the Profit before Tax and exceptional items at Rs 52.37 crores washigher by 7% , the Profit before Tax and Profit after Tax at Rs 52.28 crores andRs 35.61 crores were lower by 19% and 17%, respectively, over the correspondingquarter of the preceding year due to lower exceptional income in the currentyear's first quarter. 6. Tata Coffee Ltd (the Company's 50.67% Indian subsidiary) has signed adefinitive Agreement to acquire Eight O' Clock Coffee Company, USA for a totalconsideration of US $ 220 Mn. The acquisition will be funded through acombination of equity and non-recourse debt and is in line with Tata Coffee'sobjectives to move up the value chain and become a fully integrated player inthe global coffee industry. 7. Previous period's figures have been regrouped, to the extent necessary,to conform to current period's figures. 8. The aforementioned results were reviewed by the Audit Committee of theBoard on July 24, 2006 and subsequently taken on record by the Board ofDirectors at its meeting held on July 26, 2006. R K Krishna Kumar (Vice Chairman)Mumbai: July 26, 2006 This information is provided by RNS The company news service from the London Stock Exchange