TGBL.L Regulatory News (TGBL)

28 Jan 2008 11:16

Tata Tea Limited28 January 2008 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for three months ended December 31, 2007 Rs in crores Three months ended Nine months ended Previous Year ended December 31 December 31 31st March, 2007 2006 2007 2006 2007 Income from Operations 355.38 290.77 964.44 819.12 1,070.35 Other Income - Income from Investments (Net) 46.00 7.95 88.84 67.96 75.76 Total Expenditure 298.71 239.62 780.08 650.28 891.21 (a) (Increase) / Decrease in stock 9.80 6.09 (9.51) (39.07) (15.59) (b) Consumption of raw materials 118.61 83.92 307.75 243.24 322.63 (c) Purchase of traded goods 13.25 12.56 21.06 32.35 32.55 (d) Staff Costs 47.12 46.11 150.94 138.56 179.15 (e) Advertisement & Sales charges 37.20 25.74 79.02 68.31 92.75 (f) Depreciation & Amortization 4.43 4.55 14.51 13.88 18.54 (g) Other Expenditure 68.30 60.65 216.31 193.01 261.18 Profit before Interest 102.67 59.10 273.20 236.80 254.90 Interest (Net) 13.34 2.67 18.58 9.47 11.63 Interest on Loans for acquisition 2.98 12.41 24.47 12.41 26.68 Profit before Tax and exceptional items 86.35 44.02 230.15 214.92 216.59 Exceptional Income / (Expenditure) (Net) (2.19) 61.35 (3.29) 127.15 133.18 Profit before Tax 84.16 105.37 226.86 342.07 349.77 Provision for Taxation (a) Current 25.13 10.67 59.48 38.05 40.30 (b) Deferred (0.32) (0.15) (1.03) (0.51) 0.25 (c) Fringe Benefit Tax 0.47 0.65 1.72 1.85 2.65 Profit after Tax 58.88 94.20 166.69 302.68 306.57 Profit after tax from North India Plantation 9.41 7.04 32.69 40.82 18.27 Division Profit after tax excluding North India Plantation 49.47 87.16 134.00 261.86 288.30 Division Paid up Equity Share Capital (face value of Rs 10 each) 61.84 59.03 61.84 59.03 59.03 Reserves excluding Revaluation Reserves - - - - 1,462.83 Earnings per share (Basic & diluted) (Not annualised) - Rs 9.52 16.38 27.09 53.43 53.56 Earnings per share (Basic) excluding North India 8.00 15.16 21.78 46.22 50.37 Plantation Division (Not annualised) - Rs Aggregate of Public Shareholding (excludes shares held against GDRs) -Number of Shares 399,28,634 39,843,752 399,28,634 39,843,752 39,917,866 -Percentage of Share holding 64.56% 67.49% 64.56% 67.49% 67.62% Notes: 1. Income from operations for the quarter at Rs 355.38 crores increased by 22% over the corresponding period of the previous year mainly driven by higher branded tea volumes which have grown by 15% and increased auction sales. 2. The Profit before Tax and exceptional items at Rs 86.35 crores is higher by 96% over the corresponding quarter of the preceding year. The Profit before Tax at Rs 84.16 crores is however lower than the previous year's figure of Rs 105.37 crores on account of exceptional profits on sale of shares received in the corresponding quarter of the previous year amounting to Rs 63.53 crores. Resultantly, the Profit after Tax at Rs. 58.88 crores is also lower compared to corresponding quarter of previous year. 3. In terms of the Scheme of Arrangement approved by the shareholders and submitted to the Hon'ble High Court at Calcutta under Section 391 - 394 of the Companies Act 1956, the North India Plantations of the Company will be transferred to Amalgamated Plantations Pvt Limited (APPL) with effect from April 1, 2007. As provided in the scheme, the company is carrying on all business and activities relating to the North India Plantation Division (NIPD) for and on account of and in trust for APPL. The scheme is pending for approval with the Hon'ble Calcutta High Court and on the scheme being sanctioned, the net profit for the period from 1st April to 31st December 2007 amounting to Rs. 32.69 crores will be transferred to APPL and the same has been disclosed separately. Earnings per share (EPS) have also been disclosed separately for the operations excluding NIPD. Credit has not been taken for the Profit on transfer of NIPD amounting to approximately Rs. 148 crores (pre-tax) which will accrue to the Company on the Scheme becoming effective. 4. The Company has during the quarter acquired 25.78 lakh shares of Mount Everest Mineral Water Ltd for a consideration of Rs 36.09 crores pursuant to an open offer and 31.10 lakh shares from the promoters for a consideration of Rs 43.54 crores. 5. 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 December 31, 2007 has been valued at the lower of estimated cost of production (full year production and expenditure) and net realizable value. 6. 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 October 1, 2007 Nil Received during the quarter 2 Resolved during the quarter 2 Outstanding as on December 31, 2007 Nil 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 the Board on January 24, 2008 and subsequently taken on record by the Board of Directors at its Meeting held on January 28, 2008. The statutory auditors of the company have audited these results. Tata Tea Limited Registered Office : 1 Bishop Lefroy Road Kolkata 700020 Unaudited Consolidated Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for the Quarter ended December 31, 2007 (Rs. In crores) Particulars 3 months ended Nine months Previous year ended December 31st ended December March 31st 2007 2007 31st 20071. Segment Revenue (a) Tea 943.49 2609.45 3332.19 (b) Coffee & Other Produce 238.94 673.98 692.26 (c) Others 3.69 19.55 18.79 (d) Unallocated 3.89 38.49 59.98 Total 1190.01 3341.47 4103.22 Less : Inter Segment Revenue (0.36) (6.13) - Total Revenue 1189.65 3335.34 4103.22 2. Segment Results (a) Tea 177.66 454.78 578.83 (b) Coffee & Other Produce 39.99 107.81 101.90 (c) Others 0.04 1.27 1.13 Total 217.69 563.86 681.86 Add/(Less) i) Interest (10.89) (69.40) (106.82) ii) Interest on loans for acquisition (39.55) (141.62) (166.11) iii) Exchange gain 38.25 60.31 34.72 iv) Other Un-allocable Income net of Un-allocable 1518.97 1509.44 121.96 Expenditure Total Profit before Tax 1724.47 1922.59 565.61 3. Capital Employed (a) Tea 3071.32 3071.32 2957.01 (b) Coffee & Other Produce 1266.80 1266.80 1278.84 (c) Others 4.81 4.81 6.22 (d) Unallocated 29.20 29.20 (1459.39) Total 4372.13 4372.13 2782.68 Notes: a. Business Segments: The internal business segmentation and the activitiesencompassed therein are as follows: Tea : Cultivation & manufacture of black teaand instant tea, tea buying/ blending and sale of tea in bulk or value addedform. Coffee and Other Produce : Growing and sales of coffee, pepper and otherplantation crops and sales of coffee converted into value added products such asroast and ground coffee & instantcoffee. Others : Other minor crops and curing operations of coffee and trading of itemsrequired for coffee plantations. b. The segment wise revenue, results, capital employed figures relate to therespective amounts directly identifiable to each of the segments.Unallocable expenditure include expenses incurred on common services at thecorporate level and includes Exceptional items. Unallocable income includesincome from investments. c. Comparative figures for previous periods have not been given as segmentresults are being reported, as required under the clause 41 of the listingagreement with effect from previous quarter. Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Unaudited Consolidated Financial Results ( Provisional )for the three months ended December 31, 2007 Rs in crores Three months ended Nine months ended Previous December 31 December 31 Year ended 31st March, 2007 2006 2007 2006 2007 Income from Operations 1184.92 1112.57 3301.54 2,885.45 4,044.55 Other Income - Income from Investments (Net) 4.73 6.75 33.80 55.18 58.67 Total Expenditure 987.08 938.28 2779.31 2,419.31 3,409.56 (a) (Increase) / Decrease in stock 21.46 17.12 (1.29) (69.25) (47.31) (b) Consumption of raw materials 250.58 247.20 774.33 659.23 921.25 (c) Purchase of traded goods 61.94 37.02 125.41 117.39 172.96 (d) Staff Costs 135.17 137.43 417.49 379.32 492.53 (e) Advertisement & Sales charges 260.03 227.26 683.30 587.89 846.70 (f) Depreciation and Amortization (net of Revaluation) 22.74 26.24 74.88 72.22 96.71 (g) Other Expenditure 235.16 246.01 705.19 672.51 926.72 Profit before Interest 202.57 181.04 556.03 521.32 693.66 Interest (Net) 10.89 24.43 69.40 76.06 106.82 Interest on Loans for acquisition 39.55 66.51 141.62 89.47 166.11 Exchange gain 38.25 33.06 60.31 33.06 34.72 Profit before Tax and exceptional items 190.38 123.16 405.32 388.85 455.45 Exceptional Income/(Expenditure) (Net) - Profit on sale of stake held in Energy Brands Inc. (Refer Note 2) 1604.74 - 1604.74 - - - Others (70.65) 42.36 (87.47) 107.51 110.16 Profit before Tax 1724.47 165.52 1922.59 496.36 565.61 Provision for Taxation (a) Current Tax 48.49 33.07 96.64 90.82 96.35 (b) Deferred Tax 1.12 5.36 2.72 5.08 3.38 (c) Fringe Benefit Tax 0.68 0.83 2.29 2.39 7.87 Profit after Tax 1674.18 126.26 1820.94 398.07 458.01 Share of Profit from Associates 3.44 (0.90) 25.06 8.81 17.95 Minority Interest in Consolidated Profit 370.31 8.17 383.76 15.54 32.61 Group Consolidated Net Profit 1307.31 117.19 1462.24 391.34 443.34 Profit after tax from North India Plantation Division 9.41 7.04 32.69 40.82 18.27 Profit after tax excluding North India Plantation 1297.90 110.15 1429.55 350.52 425.07 Division Paid up Equity Share Capital(face value of 61.84 59.03 61.84 59.03 59.03 Rs 10 each) Reserves excluding Revaluation Reserves - - - - 2,044.20 Earnings per share - Before Exceptional Items (Not annualised) - Rs 15.65 12.69 42.21 49.68 57.30 Earnings per share (Basic )(Not annualised) - Rs 211.40 20.38 237.67 69.08 77.46 Earnings per share (Basic) excluding North India 209.88 19.16 232.36 61.88 74.27 Plantation Division (Not annualised) - Rs Earnings per share (Diluted ) (Not annualised) - Rs 211.40 20.38 237.67 69.08 77.46 Aggregate of Public Shareholding (excludes shares held against GDRs) -Number of Shares 399,28,634 39,843,752 399,28,634 39,843,752 39,917,866 -Percentage of Share holding 64.56% 67.49% 64.56% 67.49% 67.62% Notes: 1. The consolidated Income from Operations for the quarter at Rs 1184.92 crores increased by 7% and Profit before tax and exceptional items at Rs. 190.38 crores increased by 55% over the corresponding quarter of the previous year mainly driven by improved operating performance and lower interest costs. 2. The sale of the stake in Energy Brands Inc.(EBI) has been concluded in October 2007 for an aggregate consideration of $1.02 billion and has resulted in a pre-tax profit of $421.54 million in the Tetley Group. The Company has been advised that no tax is payable on the profit on sale of these investments. 3. Other Exceptional items during the quarter represent amortization of amounts expended on Employee Separation Scheme in the holding company and an Indian subsidiary and reorganization and other one time costs in an overseas subsidiary. The previous quarter's figure included profit in the holding company on sale of shares and is net of amortization of amounts expended on Employee Separation Scheme in the holding company and an Indian subsidiary. 4. Resultantly, the Profit before Tax for the quarter at Rs 1724.47 crores and the Group Consolidated Net Profit at Rs 1307.31 crores are substantially higher than that of the corresponding quarter of the previous year. 5. Under Indian GAAP, the turnover of The Tetley Group (in which theCompany together with its subsidiaries has a 77.78% shareholding) for thequarter at Rs 607.64 crores was marginally higher than the corresponding quarterof the previous year. The Operating Profit earned during the quarter was higherat Rs 106.54 crores (corresponding quarter of the previous year Rs 65.21 crores)reflecting lower operating costs and decrease in interest expenditure. 6. In terms of the Scheme of Arrangement approved by the shareholders and submitted to the Hon'ble High Court at Calcutta under Section 391 - 394 of the Companies Act 1956, the North India Plantations of the Holding company will be transferred to Amalgamated Plantations Pvt Limited (APPL) with effect from April 1, 2007. As provided in the scheme, the Holding company is carrying on all business and activities relating to the North India Plantation Division (NIPD) for and on account of and in trust for APPL. The scheme is pending for approval with the Hon'ble Calcutta High Court and on the scheme being sanctioned, the net profit for the period from 1st April to 31st December 2007 amounting to Rs. 32.69 crores will be transferred to APPL and the same has been disclosed separately. Earnings per share (EPS) have also been disclosed separately for the operations excluding NIPD. Credit has not been taken for the Profit on transfer of NIPD amounting to approximately Rs. 148 crores (pre-tax) which will accrue to the Holding company on the Scheme becoming effective. 7. In accordance with the Articles of Association of Mount Everest Mineral Water Ltd (MEMW) and the shareholders' agreement with its promoters the Company presently controls the Board of Directors of the Company. Consequently based on legal opinion, MEMW has been considered as a subsidiary of the company. 8. The financial results of Mount Everest Mineral Water Limited and of Estate Management Services Private Ltd, Sri Lanka, an "associate" for the quarter ended December 31, 2007 are not finalized to date and accordingly the same have not been considered for consolidation. Based on provisional estimates the share of profit/ (loss) in the said entities is not material. 9. Previous period's figures have been regrouped, to the extent necessary, to conform to current period's figures. 10. The aforementioned results were reviewed by the Audit Committee of the Board on January 24, 2008 and subsequently taken on record by the Board of Directors at its meeting held on January 28, 2008. Limited review of the results has been completed by the auditors. This information is provided by RNS The company news service from the London Stock Exchange