TGBL.L Regulatory News (TGBL)

Standalone Audited Financial Results for three months ended December 31, 2010

Notes:

1. During January 2011, Tata Coffee Ltd, the Company's Indian subsidiary has entered into a non binding Memorandum of Understanding with Starbucks Coffee International, Inc. (Starbucks) for a potential strategic collaboration in areas of sourcing of coffee beans, utilisation of coffee roasting facilities to meet the requirements of Starbucks for their proposed retail operations in India and other countries. This arrangement is subject to the execution of definitive agreements by Tata Coffee and Starbucks.

2. During December 2010, the Company's overseas subsidiary increased the stake in The Rising Beverages Company LLC, the owner of ActivateTM a performance beverage in the USA,, from 10% to 31% calculated on a fully diluted basis. The subsidiary has an option to further increase its stake in this Company.

3. During the quarter, the Company entered into a 50:50 Joint Venture with PepsiCo India Holdings Private Limited in the area of non-carbonated Ready-to-drink beverages focused on health and enhanced wellness. The mandate of the Joint Venture is to develop its business internationally.

4. Total Operating Income for the quarter at Rs 475.17 crores grew by 5%, driven by improvement in branded tea operations.

5. Profit before exceptional items at Rs 65.27 crores was higher by 23 % over the corresponding period of the previous year due to higher dividend from subsidiaries and lower interest costs. Profit from operations was impacted by higher commodity costs and investments in new initiatives.

6. Exceptional items for the nine months ended December 31, 2010 represent reorganization costs relating to restructuring of business. Exceptional items for the previous year's corresponding period include profit on sale of equity shares of Rallis India Limited amounting to Rs 247.72 crores net of amortization of amount incurred on Employee Separation Schemes of Rs 6.58 crores.

7. With effect from July 2, 2010, the face value of the company's shares has been subdivided from Rs 10 per share to Rs 1 per share. Earnings per share for previous periods have been computed based on the revised number of shares. Earnings per shares (basic and diluted-not annualised) for the nine months period ended December 31, 2010 of Rs 1.84 is lower than Rs 5.46 as reported for the corresponding period of the previous year due to the impact of exceptional items. Net of the impact of the exceptional items, EPS (basic and diluted-not annualised) for the nine months period ended December 31, 2010 is Rs 2.07 as compared to Rs 1.99 for the corresponding period of the previous year.

8. As the Company's activity falls within a single business segment, viz "Buying / Blending and Sale of tea in bulk and value added form" the disclosure requirements of Accounting Standard (AS-17) on "Segment Reporting" notified by the Companies (Accounting Standard) Rules 2006, are not applicable.

9. The Company had no investor complaints pending resolution as on October 01, 2010. Two investors' complaints were received during the three months ended December 31, 2010 and both were resolved during the period. There were no investor complaints pending resolution as on December 31, 2010.

10. Previous period's figures have been rearranged / regrouped to the extent necessary, to conform to the current period's figures.

11. The aforementioned results were reviewed by the Audit Committee of the Board on January 27, 2011 and subsequently taken on record by the Board of Directors at its meeting held on January 28, 2011. The statutory auditors of the company have audited these results.

Mumbai: January 28, 2011 Ratan N Tata

(Chairman)

Unaudited Consolidated Financial Results for the three months ended December 31, 2010

Notes:

1. During January 2011, Tata Coffee Ltd, the Company's Indian subsidiary has entered into a non binding Memorandum of Understanding with Starbucks Coffee International, Inc. (Starbucks) for a potential strategic collaboration in areas of sourcing of coffee beans, utilisation of coffee roasting facilities to meet the requirements of Starbucks for their proposed retail operations in India and other countries. This arrangement is subject to the execution of definitive agreements by Tata Coffee and Starbucks.

2. During December 2010, the Company's overseas subsidiary increased its stake in The Rising Beverages Company LLC, the owner of ActivateTM a performance beverage in the USA, from 10% to 31% calculated on a fully diluted basis. The subsidiary has an option to further increase its stake in this Company.

3. During the quarter, the Company entered into a 50:50 Joint Venture with PepsiCo India Holdings Private Limited in the area of non-carbonated Ready-to-drink beverages focused on health and enhanced wellness. The mandate of the Joint Venture is to develop its business internationally.

4. Total operating income for the quarter at Rs 1608 crores increased by 4% as compared to the corresponding period of the previous year despite adverse translation impact. At constant exchange rates the increase was 8 %.

5. The Company continues to focus on building new capabilities and investment behind new products and brands. Profit before exceptional items for the quarter at Rs 148 crores was lower compared to the corresponding period of the previous year mainly due to higher commodity costs, higher expenditure on growth initiatives and lower interest earnings. Accordingly, profit before and after tax are also lower than the corresponding period in the previous year.

6. (a) Exceptional items for the quarter comprises of expenses relating to restructuring of business (Rs 6.72 crores) offset by translation gain on foreign currency hedges in overseas subsidiaries (Rs 6.60 crores). In the corresponding period of the previous year exceptional items mainly consisted of expense relating to restructure of business (Rs 1.48 crores) and other exceptional items (Rs 2.20 crores).

(b) Exceptional items for the nine months ended December 31, 2010 comprises of expenses relating to restructure of business (Rs 43.62 crores) and translation impact on foreign currency hedges in overseas subsidiary (Rs 2.81 crores). In the corresponding period of the previous year exceptional items consisted of Group profit on sale of shares of an associate (Rs 186.05 crores) offset by translation loss on foreign currency hedges in overseas subsidiaries (Rs 135.39 crores), expenses relating to restructuring of business (Rs 13.48 crores) and other exceptional items (Rs 6.58 crores). 

7. With effect from record date July 2, 2010, the face value of the holding company's shares has been subdivided from Rs 10 per share to Re 1 per share. Earnings per share for previous periods have been computed based on the revised number of shares. Earnings per share (EPS) (basic and diluted- not annualised) for the quarter ended December 31, 2010 of Rs. 1.16 is lower than Rs 1.49 reported for the corresponding period of the previous year mainly due to higher commodity costs and higher expenditure on growth initiatives. Net of the impact of exceptional items, EPS (basic and diluted - not annualised) for the current quarter is Rs. 1.16 as compared to Rs 1.53 for the corresponding period of the previous year.

8. The major part of the 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 this quarter as permitted under SEBI guidelines. The standalone results shall be available on the Company's website as well as on the website of the stock exchanges where the Company's shares are listed. The Total Operating Income, Net Profit after Tax and Earnings per share of the holding Company's standalone financial results are given below:

*Profit after Tax in the prior period is higher mainly due to the profit on sale of shares (Rs 220 crores) held in an Associate Company. 

9. The share of profit/(loss) in The Rising Beverages Company LLC, an associate company since December 20, 2010, has not been included in the results for the quarter, as the same is not yet available. This is, however, not estimated to have a material impact on the results of the Group for the quarter.

10. Previous period's figures have been regrouped / rearranged, 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 January 27, 2011 and subsequently taken on record by the Board of Directors at its Meeting held on January 28, 2011 The statutory auditors of the company have conducted limited review of these results.

Ratan N Tata

(Chairman)

Mumbai: January 28, 2011

Unaudited Consolidated Segment wise Revenue, Results and Capital Employed, underClause 41, of the Listing Agreement for the Three months ended Dec 31, 2010

Notes:

a. Business Segments: 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.Coffee and Other Produce : Growing of coffee, pepper and other plantation crops and conversion of coffee into value added products such as roast and ground coffee & instant coffee.Others : Sale of natural Mineral Water , other minor crops and curing operations of coffee and trading of items required for coffee plantations.

b. The segment wise revenue, results, 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, interest and exceptional items. Unallocable income includes income from investments & exceptional items.

c. Previous periods figures have been regrouped / rearranged, to the extent necessary, to conform to current periods figures

Mumbai: January 28, 2011 Ratan N Tata

(Chairman)