TGBL.L Regulatory News (TGBL)

RNS Number : 5495M

Tata Tea Limited

26 May 2010

 

 

 

Audited Financial Results for the year ended March 31, 2010

 

 

 

 

 

 

 

 

Notes: 

1. Total Operating Income for the year at Rs 1715.61 crores grew by 24% over the previous year driven by strong branded tea performance.

 

2. The Profit before Tax and exceptional items at Rs 255.30 crores improved by 7% over the previous year after absorbing higher input costs and substantially larger investment behind brands.

 

3. The company, during the year, has sold 29,38,713 equity shares of Rallis India Limited. The profit arising out of sale of the aforesaid investment amounting to Rs 247.72 crores is included under Exceptional Items net of amortization of amounts incurred on Employee Separation Scheme of Rs 7.59 crores. Exceptional items during the previous year comprised of amortization of amounts incurred on Employee Separation Scheme of Rs 8.78 crores and costs on new business initiatives of Rs 5.95 crores reduced by profit on sale of long term investments of Rs 5.14 crores.

 

4. The Profit before Tax at Rs 495.43 crores and the Profit after Tax at Rs 391.47 crores are higher compared to the previous year due to exceptional items.

 

 

5. 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.

 

6. The Board of Directors has approved a change in the name of the Company from Tata Tea Limited to Tata Global Beverages Limited subject to the approval of the Shareholders and the Central Government. Approval of the Shareholders is being sought through Postal Ballot for which notices have already been dispatched.

 

7. The Board of Directors has approved sub-division of the equity shares of the Company from Rs 10 per share to Re 1 per share subject to the approval of shareholders and other concerned authorities. Approval of the Shareholders is being sought through Postal Ballot for which notices have already been dispatched.

 

8. The Company had one investor complaint pending resolution as on January 01, 2010. One investor complaint was received during the three months ended March 31, 2010. Both these investor complaints are pending resolution as on March 31, 2010 which relate to issue of duplicate certificates for which requisite documentations from the shareholders are yet to be received.

 

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

 

10. The Board of Directors have recommended a dividend payment of Rs. 20.00 per share (Face value Rs. 10 each) for the year ended 31st March 2010.

 

11. The aforementioned results were reviewed by the Audit Committee of the Board on May 24, 2010 and subsequently taken on record by the Board of Directors at its Meeting held on May 25, 2010. The statutory auditors of the company have audited these results.

 

 

Mumbai, May 25, 2010 Ratan N Tata

(Chairman)

 

 

 

 

 

 

 

 

 

 

 

 

 

Audited Consolidated Financial Results for the year ended March 31, 2010

 

 

 

Notes: 

1. The Consolidated total operating income for the year at Rs 5821 crores is 19% higher than the previous year, due to strong branded performance aided by improved price realization in key markets which has partially offset the increase in commodity costs.

2. Profit before exceptional items (Operating Profit) at Rs. 625 crores has increased by 19% as compared to the previous year due to improved operating performance and low interest costs. During the year there has been increased investments behind advertisement and promotional support for brand building and new product initiatives.

3. Net Exceptional Income for the year comprises of (a) Profit on sale of shares of Rallis India Ltd, an associate company, of Rs 186 crores net of share of profits accounted for in the past years. Consequently the company ceased to be an associate of the Holding Company with effect from August 20, 2009. (b) Part reversal of exchange gains of Rs 102 crores booked on foreign currency assets / options in the previous year. (c) Actuarial Loss of Rs. 40 crores on Defined Benefit retirement schemes of an overseas subsidiary. (d) Reorganization costs of Rs. 20 crores relating to restructuring and expansion ofbusiness. (e) Amortization of amounts incurred on Employee Separation scheme amounting to Rs. 8 crores. In the previous year, net exceptional income consisted of foreign exchange gain on foreign currency assets / options of Rs. 819 crores in an overseas subsidiary and other exceptional expenditure of Rs. 89 crores.

4. (a) During the year the Holding Company purchased an additional 4.93% stake in Mount Everest Mineral Water Limited (MEMWL) from the market thereby increasing its stake to 40.92%. (b) The Shareholding of the Holding Company in Amalgamated Plantations Private Limited (APPL) has reduced from 49.98% to 49.07% consequent to the issue of fresh shares by that company.

5. During the year, Tata Tea (GB) Group through its subsidiary acquired 51% stake in the consolidated group of Suntyco Holding Limited (Russian Beverage Company). Accordingly, the results for the Russian Beverage Company has been consolidated for 7 months as a subsidiary in the results.

6. The Earnings per share (EPS) (basic and diluted) for the year ended March 31, 2010 of Rs. 63.11 is lower than Rs 113.28 reported last year which was due to the favorable impact of exceptional items in the previous year. Excluding exceptional items, EPS (basic and diluted) for the year is Rs. 51.07 as compared to Rs 47.39 for the previous year, reflecting an improvement in underlying core operational performance.

7. Previous year's figures have been regrouped, to the extent necessary, to conform to current year's figures.

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 financial year 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 Company's standalone financial results are given below:

Rs. in Crores	Year Ended March 31st 2010	Year Ended March 31st 2009
Total Operating Income	1716	1379
Profit after Tax	391	159
Earnings per Share - Rs.	63.30	25.72

 

9. The aforementioned results were reviewed by the Audit Committee of the Board on May 24, 2010 and subsequently taken on record by the Board of Directors at its Meeting held on May 25, 2010. The statutory auditors of the company have audited these results.

10. The Board of Directors has approved a change in the name of the Holding Company from Tata Tea Limited to Tata Global Beverages Limited subject to the approval of the Shareholders and the Central Government. Approval of the Shareholders is being sought through Postal Ballot for which notices have already been dispatched. Consequently names of subsidiary companies are also proposed to be changed.

11. The Board of Directors has approved sub-division of the equity shares of the Holding Company from Rs 10 per share to Re 1 per share subject to the approval of shareholders and other concerned authorities. Approval of the Shareholders is being sought through Postal Ballot for which notices have already been dispatched.

Mumbai, May 25, 2010 Ratan N Tata

(Chairman)

 

 

 

Audited Consolidated Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for the Year ended March 31, 2010

 

(Rs. in Lakhs)
	Year ended March 31 , 2010	Year ended March 31, 2009
1. Segment Revenue
a) Tea	441226	378515
b) Coffee & Other Produce	134601	104712
c) Others	6132	4088
d) Unallocated	133	95
Total Operating Income	582092	487410
2. Segment Results
a) Tea	57391	52895
b) Coffee & Other Produce	23970	14663
b) Others	(1399)	(3233)
Total	79962	64325
ADD / (Less)
i) Interest(net)	(2793)	(5420)
ii) Other Un-allocable items, Investment Income and Exceptional Expenditure	(13071)	66726
Total Profit before Tax	64098	125631
3. Capital Employed
a) Tea	269112	279074
b) Coffee & Other Produce	153175	153233
c) Others	2133	2337
d) Unallocated including Investments	53617	32076
Total	478037	466720

 

 

 

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 and exceptional items. Mumbai: May 25, 2010 Ratan N Tata (Chairman)

 

 

Financial Highlights
(Rs. in Crores)
	Year Ended March 31
Particulars	2010	2009
Total Operating Income	5820.92	4874.10
Profit before Exceptionals	624.85	525.93
Exceptionals (net)	16.13	730.38
Net Profit Before Tax	640.98	1256.31
Net Profit after Tax	393.46	831.90
Earnings per Share - Rs*	63.11	113.28
Earnings per Share (before Exceptionals) on Core Operations - Rs*	51.07	47.39
Dividend recommended - Rs per share (Face Value Rs 10 per Share)	Rs. 20.00	Rs. 17.50

 

 

 

 

 

 

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