10 Feb 2020 12:22
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com, Website : www.tataglobalbeverages.com
Unaudited Standalone Financial Results for the quarter and nine months ended December 31, 2019
Rs. in Crores
Particulars | Three months ended | Year to date ended | Year ended | |||
| December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | March 31, 2019 |
| Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited |
Revenue from Operations | 932.50 | 914.14 | 889.73 | 2815.46 | 2645.61 | 3429.66 |
Other Income | 22.22 | 32.53 | 21.85 | 93.15 | 155.90 | 182.51 |
Total Income | 954.72 | 946.67 | 911.58 | 2908.61 | 2801.51 | 3612.17 |
Cost of materials consumed | 550.59 | 547.20 | 562.67 | 1629.93 | 1555.11 | 2055.97 |
Purchase of stock-in-trade | 19.32 | 13.10 | 4.81 | 38.92 | 15.40 | 23.65 |
Changes in inventories of finished goods, work-in-progress & stock-in-trade | (21.05) | (3.59) | (27.59) | 41.39 | 31.01 | 0.16 |
Employees benefits expense | 58.59 | 57.75 | 55.99 | 172.57 | 167.18 | 216.85 |
Finance costs | 6.26 | 5.57 | 3.56 | 17.32 | 9.94 | 13.18 |
Depreciation and amortisation expense | 17.11 | 15.34 | 7.91 | 46.13 | 22.95 | 31.68 |
Advertisement and sales charges | 78.22 | 70.66 | 54.62 | 198.61 | 163.70 | 226.55 |
Other expenses | 118.46 | 105.33 | 125.25 | 335.09 | 334.00 | 468.21 |
Total Expenses | 827.50 | 811.36 | 787.22 | 2479.96 | 2299.29 | 3036.25 |
Profit before Exceptional Items and Tax | 127.22 | 135.31 | 124.36 | 428.65 | 502.22 | 575.92 |
Exceptional Items (Net) | (0.84) | (1.50) | - | (10.40) | - | - |
Profit before Tax | 126.38 | 133.81 | 124.36 | 418.25 | 502.22 | 575.92 |
Tax Expense |
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Current Tax | (33.30) | (13.28) | (35.13) | (101.09) | (137.03) | (160.57) |
Deferred Tax | 1.14 | (20.83) | 0.43 | (17.14) | (7.52) | (4.42) |
Total Tax Expense ( net of reversals) | (32.16) | (34.11) | (34.70) | (118.23) | (144.55) | (164.99) |
Net Profit after Tax (A) | 94.22 | 99.70 | 89.66 | 300.02 | 357.67 | 410.93 |
Other Comprehensive Income |
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i) Items that will not be reclassified to profit or loss |
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Remeasurement of defined benefit plans | (2.56) | (5.47) | (13.45) | (18.62) | (6.09) | 4.67 |
Changes in fair valuation of equity instruments | 5.38 | (3.69) | 3.92 | 5.17 | 4.63 | (3.77) |
| 2.82 | (9.16) | (9.53) | (13.45) | (1.46) | 0.90 |
Tax impact of above items | 0.64 | (0.31) | 4.70 | 4.03 | 2.13 | (1.80) |
| 3.46 | (9.47) | (4.83) | (9.42) | 0.67 | (0.90) |
ii) Items that will be reclassified to profit or loss |
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Gains/(loss) on effective portion of cash flow hedges | (2.20) | (2.78) | 8.11 | (4.86) | 2.70 | 4.23 |
Tax impact of above item | 0.57 | 0.92 | (2.83) | 1.45 | (0.94) | (1.48) |
| (1.63) | (1.86) | 5.28 | (3.41) | 1.76 | 2.75 |
Other Comprehensive Income (Net of Tax) (B) | 1.83 | (11.33) | 0.45 | (12.83) | 2.43 | 1.85 |
Total Comprehensive Income (A+B) | 96.05 | 88.37 | 90.11 | 287.19 | 360.10 | 412.78 |
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Paid-up equity share capital (Face value of Re. 1 each) | 63.11 | 63.11 | 63.11 | 63.11 | 63.11 | 63.11 |
Reserves excluding Revaluation Reserves |
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| 4358.71 |
Earnings per share (Basic & Diluted) (not annualised for the quarter and year to date) - Rs. | 1.49 | 1.58 | 1.42 | 4.75 | 5.67 | 6.51 |
Notes:
1. For the quarter, Revenue from Operations at Rs. 933 crores increased by 5% over corresponding quarter of the previous year led by India branded business which saw a volume growth of 7% and value growth of 6%. Profit before Exceptional Items and Taxes at Rs. 127 crores is higher as compared to corresponding quarter of previous year led by volume increase and benefit of lower commodity costs partly offset by increased spends behind brands. Consequently Profit after Tax is higher than corresponding quarter of the previous year.
2. The Board of Directors and Shareholders of Tata Global Beverages Limited (the "Company") at their respective meetings held on May 15, 2019 and November 4, 2019, had approved the Scheme of Arrangement (the "Scheme"), which provided for the demerger of the Consumer Product Business ("CPB") of Tata Chemicals Limited (TCL) from that entity and the transfer thereof to the Company as a going concern, for a consideration, to be discharged by the allotment of 114 equity shares in the Company for every 100 shares held in TCL, as of the Record Date. The Hon'ble National Company Law Tribunal ("NCLT"), Kolkata Bench, has by its order dated January 8, 2020 (the "Order") sanctioned the Scheme.
The Scheme will become effective on completion of various activities, the last of which is filing of the certified copies of the NCLT orders for the TCL and the Company with the respective Registrars of Companies, as provided in the Scheme.
The Board of Directors of the Company at its meeting held today has, inter alia, taken on record the certified copy of the Order and has also formed a Special Committee of the Board for the purpose of fixation of Record Date and oversee other aspects related to the compliance with the terms of the Scheme and the Implementation Agreement dated May 15, 2019, including the allotment of shares.
The acquisition of the CPB, on the scheme becoming effective, is expected to be accounted in the books of the Company during the fourth quarter of this financial year, with effect from the appointed date of 1st April 2019, as per the provisions of the Scheme, the Implementation Agreement and Ind AS 103, Business Combinations, including fair valuation of identified assets acquired and liabilities assumed and amortization of relevant assets.
3. Exceptional item for the current quarter represent costs relating to the Scheme referred to in Note 2, above.
4. The Company has organised its business into Branded Segment and Non Branded Segment. Branded Segment is further categorised as Branded Tea, Branded Coffee and the residual as Branded Others. As per the threshold limits prescribed under Indian Accounting Standard (Ind AS-108) on "Segment Reporting", the Company's reportable activity falls within a single business segment and hence, the segment disclosure requirements are not applicable.
5. Effective April 1, 2019, the Company has adopted Ind AS 116 - Leases and applied the revised standard to all lease contracts thereby capitalising assets taken on operating lease existing on April 1, 2019, using the modified retrospective method, with the cumulative adjustments to retained earnings. Accordingly, comparatives for the year ended March, 31 2019 have not been restated. On transition, the cumulative effect of applying the standard resulted in Rs 15 cores being debited to retained earnings, net of taxes.
6. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
7. The aforementioned results were reviewed by the Audit Committee of the Board on February 04, 2020 and subsequently taken on record by the Board of Directors at its meeting held on February 04, 2020. The Statutory Auditors of the Company have conducted limited review on these results.
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP Chartered Accountants Firm's Registration No. 117366W/W-100018
Sanjiv V. Pilgaonkar Partner Membership No. 039826 Mumbai: February 04, 2020 |
Ajoy Misra
Managing Director and CEO |
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 quarter and nine months ended December 31, 2019
Rs. in Crores
Particulars | Three months ended | Year to Date ended | Year Ended | |||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | March31, 2019 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Revenue from Operations | 1961.90 | 1834.06 | 1912.58 | 5693.09 | 5476.04 | 7251.50 |
Other Income | 25.95 | 25.29 | 22.59 | 81.77 | 121.90 | 157.13 |
Total Income | 1987.85 | 1859.35 | 1935.17 | 5774.86 | 5597.94 | 7408.63 |
Cost of Materials Consumed | 895.89 | 857.27 | 861.77 | 2585.64 | 2481.13 | 3294.18 |
Purchase of stock in trade | 176.43 | 174.62 | 148.69 | 515.18 | 538.24 | 727.87 |
Changes in inventories of finished goods, work in progress and stock in trade | (16.02) | (21.63) | 46.47 | 23.01 | 15.93 | (14.41) |
Employee Benefits Expense | 208.95 | 199.00 | 205.14 | 610.05 | 603.29 | 806.30 |
Finance Costs | 19.22 | 20.07 | 12.95 | 57.53 | 36.99 | 52.47 |
Depreciation and Amortisation Expense | 49.15 | 46.82 | 29.62 | 141.97 | 89.59 | 122.57 |
Advertisement and Sales charges | 171.92 | 136.69 | 155.23 | 416.97 | 417.93 | 547.52 |
Other Expenses | 285.11 | 253.46 | 299.06 | 803.17 | 807.88 | 1104.13 |
Total Expenses | 1790.65 | 1666.30 | 1758.93 | 5153.52 | 4990.98 | 6640.63 |
Profit before Exceptional Items and Tax | 197.20 | 193.05 | 176.24 | 621.34 | 606.96 | 768.00 |
Exceptional Items (Net) | (0.84) | (1.50) | - | (10.40) | (24.90) | (33.29) |
Profit before Tax | 196.36 | 191.55 | 176.24 | 610.94 | 582.06 | 734.71 |
Tax Expense |
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Current tax | (54.96) | (32.17) | (42.79) | (159.91) | (177.61) | (256.03) |
Deferred tax | (0.93) | (16.15) | (12.13) | (18.22) | (24.44) | (4.85) |
Total Tax Expense (Net) | (55.89) | (48.32) | (54.92) | (178.13) | (202.05) | (260.88) |
Net Profit after Tax | 140.47 | 143.23 | 121.32 | 432.81 | 380.01 | 473.83 |
Share of net profit/(loss) in Associates and Joint Ventures using equity method | (4.62) | 9.24 | (12.43) | (2.81) | 40.98 | (16.85) |
Group Consolidated Net Profit (A) | 135.85 | 152.47 | 108.89 | 430.00 | 420.99 | 456.98 |
Attributable to : |
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Owners of the Parent | 120.59 | 137.74 | 99.32 | 383.66 | 385.29 | 408.19 |
Non Controlling Interest | 15.26 | 14.73 | 9.57 | 46.34 | 35.70 | 48.79 |
Other Comprehensive Income |
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i) Items that will not be reclassified to profit or loss |
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Remeasurement of the defined benefit plans | (69.38) | 20.75 | (19.19) | (52.49) | 33.61 | 86.47 |
Changes in fair valuation of equity instruments | 6.63 | (4.25) | 4.15 | 6.42 | 5.10 | (5.20) |
| (62.75) | 16.50 | (15.04) | (46.07) | 38.71 | 81.27 |
Tax impact on above items | 12.07 | (4.78) | 6.00 | 9.90 | (4.04) | (13.27) |
| (50.68) | 11.72 | (9.04) | (36.17) | 34.67 | 68.00 |
ii) Items that will be reclassified to profit or loss |
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Exchange differences on translation of foreign operations | 264.36 | 30.88 | (288.81) | 204.63 | (21.11) | 17.04 |
Gains/(loss) on effective portion of cash flow hedges | 51.73 | (24.06) | 13.85 | 50.59 | (7.13) | (12.06) |
| 316.09 | 6.82 | (274.96) | 255.22 | (28.24) | 4.98 |
Tax impact on above items | (12.46) | 4.63 | (6.83) | (13.50) | 0.55 | 0.88 |
| 303.63 | 11.45 | (281.79) | 241.72 | (27.69) | 5.86 |
Total Other Comprehensive Income (B) | 252.95 | 23.17 | (290.83) | 205.55 | 6.98 | 73.86 |
Attributable to : |
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Owners of the Parent | 204.58 | 21.40 | (248.06) | 168.18 | 10.90 | 70.58 |
Non Controlling Interest | 48.37 | 1.77 | (42.77) | 37.37 | (3.92) | 3.28 |
Total Comprehensive Income (A+B) | 388.80 | 175.64 | (181.94) | 635.55 | 427.97 | 530.84 |
Attributable to : |
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Owners of the Parent | 325.17 | 159.14 | (148.74) | 551.84 | 396.19 | 478.77 |
Non Controlling Interest | 63.63 | 16.50 | (33.20) | 83.71 | 31.78 | 52.07 |
Paid-up equity share capital (Face value of Re 1 each) | 63.11 | 63.11 | 63.11 | 63.11 | 63.11 | 63.11 |
Reserves excluding Revaluation Reserve |
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| 7246.72 |
Earnings per share (Basic & Diluted) (not annualised for the quarter and year to date) - Rs | 1.91 | 2.18 | 1.57 | 6.08 | 6.10 | 6.47 |
Notes:
1. For the quarter, Revenue from operations increased by 3% as compared to corresponding quarter of the previous year driven by improvement in branded business led by 7% volume growth and 6% value growth in India and higher sales in the non-branded business. At constant currency revenue growth is 4%. Profit before tax at Rs 196 Crores is higher by 11% as compared to corresponding quarter of the previous year mainly due to revenue improvement and lower commodity cost partly offset by increased spends behind brands. Group Consolidated Net Profit is higher by 25% as compared to corresponding quarter of the previous year aided by lower tax rate and improvement in the performance of Associates & Joint Ventures.
2. The Board of Directors and Shareholders of Tata Global Beverages Limited (the "Company") at their respective meetings held on May 15, 2019 and November 4, 2019, had approved the Scheme of Arrangement (the "Scheme"), which provided for the demerger of the Consumer Product Business ("CPB") of Tata Chemicals Limited (TCL) from that entity and the transfer thereof to the Company as a going concern, for a consideration, to be discharged by the allotment of 114 equity shares in the Company for every 100 shares held in TCL , as of the Record Date. The Hon'ble National Company Law Tribunal ("NCLT"), Kolkata Bench, has by its order dated January 8, 2020 (the "Order") sanctioned the Scheme.
The Scheme will become effective on completion of various activities, the last of which is filing of the certified copies of the NCLT orders for the demerged Company and the Company with the respective Registrars of Companies, as provided in the Scheme.
The Board of Directors of the Company at its meeting held today has, inter alia, taken on record the certified copy of the Order and has also formed a Special Committee of the Board for the purpose of fixation of Record Date and oversee other aspects related to the compliance with the terms of the Scheme and the Implementation Agreement dated May 15, 2019, including the allotment of shares.
The acquisition of the CPB, on the scheme becoming effective, is expected to be accounted in the books of the Company during the fourth quarter of this financial year, with effect from the appointed date of 1st April 2019, as per the provisions of the Scheme, the Implementation Agreement and Ind AS 103, Business Combinations, including fair valuation of identified assets acquired and liabilities assumed and amortization of relevant assets.
3. In January 2020, an overseas subsidiary of the Holding Company has divested its 100% stake in Czech Republic based subsidiary, Tata Global Beverages Czech Republic a.s. Consequently, the said entity ceases to be a subsidiary with effect from January 13, 2020. The impact of the disposal accounting is not expected to be material.
4. Exceptional item for the current quarter represent costs relating to the Scheme referred to in Note 2, above.
5. Share of profits/(loss) in Associates and Joint Ventures include the profits of an Associate operating in North India plantations, which are seasonal in nature.
6. Effective April 1, 2019, the Group has adopted Ind AS 116 - Leases and applied the revised standard to all lease contracts thereby capitalising assets taken on operating lease existing on April 1, 2019, using the modified retrospective method, with the cumulative adjustment to retained earnings. Accordingly, comparatives for the year ended March 31, 2019 have not been restated. On transition, the cumulative effect of applying the standard resulted in Rs 63 Crores being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit for the period.
7. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
8. The aforementioned results were reviewed by the Audit Committee of the Board on February 04, 2020 and subsequently taken on record by the Board of Directors at its Meeting held on February 04, 2020. The Statutory Auditors of the Company have conducted limited review on these results.
9. The Consolidated and Standalone result for the quarter and nine months ended December 31, 2019 are available on the BSE website(URL: www.bseindia.com), the National Stock Exchange website (URL: www.nseindia.com) and on the Company's website(URL: www.tataglobalbeverages.com).
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP Chartered Accountants Firm's Registration No. 117366W/W-100018
Sanjiv V. Pilgaonkar Partner Membership No. 039826 Mumbai: February 04, 2020 |
Ajoy Misra Managing Director and CEO |
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 Segment wise Revenue, Results, Assets and Liabilities
for the quarter and nine months ended December 31, 2019
Rs. in Crores
Particulars | Three months ended | Year to Date ended | Year ended | |||
December 31, 2019 | September 30, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | March 31, 2019 | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | Audited | |
Segment Revenue |
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Branded Business |
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(a) Tea | 1412.24 | 1299.72 | 1389.11 | 4084.59 | 3951.64 | 5202.59 |
(b) Coffee | 313.88 | 292.53 | 326.25 | 889.43 | 921.38 | 1202.84 |
(c) Others | 6.84 | 7.00 | 6.95 | 19.88 | 23.47 | 30.77 |
Total Branded Business | 1732.96 | 1599.25 | 1722.31 | 4993.90 | 4896.49 | 6436.20 |
Non Branded Business | 238.51 | 242.23 | 198.75 | 723.66 | 601.26 | 842.47 |
Total Segment Revenue | 1971.47 | 1841.48 | 1921.06 | 5717.56 | 5497.75 | 7278.67 |
Less: Inter segment Sales | (9.57) | (7.42) | (8.48) | (24.47) | (21.71) | (27.17) |
Revenue from Operations | 1961.90 | 1834.06 | 1912.58 | 5693.09 | 5476.04 | 7251.50 |
Segment Results |
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Branded Business |
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(a) Tea | 175.35 | 163.52 | 168.16 | 536.50 | 543.19 | 694.38 |
(b) Coffee | 63.24 | 57.81 | 44.06 | 171.94 | 125.70 | 178.33 |
(c) Others | (2.21) | (3.61) | (4.74) | (9.12) | (15.00) | (21.22) |
Total Branded Business | 236.38 | 217.72 | 207.48 | 699.32 | 653.89 | 851.49 |
Non Branded Business | 7.95 | 15.18 | 5.96 | 43.68 | 33.72 | 41.58 |
Total Segment Results | 244.33 | 232.90 | 213.44 | 743.00 | 687.61 | 893.07 |
Add/Less |
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Finance Cost | (19.22) | (20.07) | (12.95) | (57.53) | (36.99) | (52.47) |
Unallocable items | (28.75) | (21.28) | (24.25) | (74.53) | (68.56) | (105.89) |
Profit Before Tax | 196.36 | 191.55 | 176.24 | 610.94 | 582.06 | 734.71 |
Segment Assets |
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Branded Business |
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(a) Tea | 5418.36 | 5013.36 | 5048.26 | 5418.36 | 5048.26 | 4683.26 |
(b) Coffee | 1957.34 | 1948.23 | 1880.21 | 1957.34 | 1880.21 | 1846.10 |
(c) Others | 42.26 | 41.44 | 41.61 | 42.26 | 41.61 | 30.31 |
Total Branded Business | 7417.96 | 7003.03 | 6970.08 | 7417.96 | 6970.08 | 6559.67 |
Non Branded Business | 1532.26 | 1540.06 | 1430.23 | 1532.26 | 1430.23 | 1483.92 |
Total Segment Assets | 8950.22 | 8543.09 | 8400.31 | 8950.22 | 8400.31 | 8043.59 |
Unallocable Corporate Assets | 2891.65 | 2851.39 | 2631.17 | 2891.65 | 2631.17 | 2895.13 |
Total Assets | 11841.87 | 11394.48 | 11031.48 | 11841.87 | 11031.48 | 10938.72 |
Segment Liabilities |
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Branded Business |
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(a) Tea | 1016.07 | 977.30 | 783.79 | 1016.07 | 783.79 | 722.98 |
(b) Coffee | 286.35 | 274.42 | 212.63 | 286.35 | 212.63 | 155.39 |
(c) Others | 15.31 | 14.02 | 17.63 | 15.31 | 17.63 | 7.87 |
Total Branded Business | 1317.73 | 1265.74 | 1014.05 | 1317.73 | 1014.05 | 886.24 |
Non Branded Business | 155.02 | 161.29 | 189.33 | 155.02 | 189.33 | 169.88 |
Total Segment Liabilities | 1472.75 | 1427.03 | 1203.38 | 1472.75 | 1203.38 | 1056.12 |
Unallocable Corporate Liabilities | 1662.82 | 1645.48 | 1580.42 | 1662.82 | 1580.42 | 1523.23 |
Total Liabilities | 3135.57 | 3072.51 | 2783.80 | 3135.57 | 2783.80 | 2579.35 |
Notes:
a) The group has organised 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.
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.
c) The segment wise revenue, results, assets and liabilities figures relate to the respective amounts directly identifiable to each of the segments. Unallocable items includes expenses incurred on common services at the corporate level, unallocable other income and exceptional items.
Ajoy Misra
Mumbai: February 4, 2020 (Managing Director and CEO)