TGBL.L Regulatory News (TGBL)

6 Jun 2006 13:47

Tata Tea Limited06 June 2006 Tata Tea Limited Registered Office : 1 Bishop Lefroy Road Kolkata 700020 Summarised Audited Financial Results for the year ended March 31, 2006 Rs in crores Nine months Quarter Quarter Year ended Year ended ended December ended March ended March March 2006 March 2005 2005 2006 2005 Income from Operations 762.98 219.07 220.41 982.05 899.63 Total Expenditure 598.35 207.91 214.56 806.26 756.25 (a) (Increase)/Decrease in stock (11.64) 23.24 25.64 11.60 (29.33) (b) Purchase for Trading/Consumption 211.60 68.33 52.48 279.93 227.21 of Raw Materials (c) Staff Costs 133.76 34.10 57.15 167.86 253.93 (d) Advertisement and Sale charges 65.72 24.27 23.53 89.99 76.50 (e) Other Expenditure 198.91 57.97 55.76 256.88 227.94 Profit before Interest and Depreciation 164.63 11.16 5.85 175.79 143.38 Interest (Net) 7.25 1.72 1.47 8.97 8.47 Gross Profit after Interest but before Depreciation and Taxation 157.38 9.44 4.38 166.82 134.91 Depreciation 14.24 5.19 6.01 19.43 21.99 Profit before Tax from Operations 143.14 4.25 (1.63) 147.39 112.92 Income from Investments/other income (Net) 33.50 24.46 28.95 57.96 50.42 Profit before Tax and exceptional 176.64 28.71 27.32 205.35 163.34 items Exceptional Income/(Expenditure) (a) Net profit on exit from South India 41.34 (0.46) - 40.88 - plantations (b) Other items (13.86) (1.85) (1.19) (15.71) (1.19) Profit before Tax 204.12 26.40 26.13 230.52 162.15 Provision for Taxation (a) Current Taxation 37.50 6.24 4.76 43.74 38.76 (b) Deferred Taxation (2.49) (0.46) (4.46) (2.95) (5.53) (c) Fringe Benefit Tax 1.50 1.30 - 2.80 - Profit after Tax 167.61 19.32 25.83 186.93 128.92 Paid up Equity Share Capital(face value of Rs 10 each) 56.22 56.22 56.22 56.22 56.22 Reserves excluding Revaluation Reserve 1083.18 970.89 Earnings per Share-Rs 29.81 3.44 4.59 33.25 22.93 Aggregate of Non-Promoter Shareholding -Number of Shares 39,941,538 39,941,538 39,751,538 39,941,538 39,751,538 -Percentage of Shareholding 71.05% 71.05% 70.71% 71.05% 70.71% Notes : 1. The Income from Operations for the year ended March 31, 2006 improved by 9%over the preceding year driven by strong performance of branded tea sales whichgrew by 12%. Exit from South India plantation operations have resulted inreduction in sales which have been offset by amalgamation of Tata Tetley Ltdwith the Company and by the improvement in branded tea sales. 2. Profit before Tax from Operations at Rs 147.39 crores was 31% higher thanthe profit earned during the previous year due to the strong brand performanceand exit from South India plantation operations. The Profit after Tax at Rs186.93 crores was 45 % higher than the profit for the corresponding year. 3. Exceptional Income /(Expenditure) during the year comprise of profit on saleof 23 estates in South India - Rs 40.88 crores and 'Other items' consisting ofamortization of expenditure incurred on Employee Separation Schemes (Rs 7.21crores) and Commercial taxes for discontinued business (Rs 8.50 crores). 4. Tata Tetley Ltd (TTY) was amalgamated with the Company with effect from 1stApril 2005, in terms of the Scheme of Amalgamation sanctioned by the Hon'bleHigh Courts of Calcutta and Kerala on 4th January 2006 and 20th December 2005,respectively. Accordingly, the results for the year include the results of TTY. 5. Of the Companies 25 estates in South India, 17 estates were transferred onApril 1, 2006 to Kanan Devan Hills Plantations Company Pvt Ltd, mainly owned byemployees in which the Company holds 18.2% of the equity capital and 6 estateswere transferred during the year to Tata Coffee Ltd., a subsidiary. Bothtransfers were on a commercial arms length basis. 6. Particulars of complaints received from investors during the quarter,complaints resolved and those pending are as follows:- Particulars of complaints Numbers Outstanding as on 1st January, 2006 -Received during the quarter 2Resolved during the quarter 2Outstanding as on 31st March 2006 - 7. Previous year's figures have been regrouped, to the extent necessary, toconform to current year's figures and are not strictly comparable to those ofthe current year, in view of the amalgamation of Tata Tetley Ltd and exit fromSouth India plantation operations. 8. The Board of Directors has recommended a dividend payment of 120% (Previousyear 100%). 9. The aforementioned results were reviewed by the Audit Committee of the Boardand subsequently taken on record by the Board of Directors at its meeting heldon June 6th, 2006. R. K. Krishna Kumar Mumbai: June 6, 2006 (Chairman) Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for the year ended 31st March, 2006 Rs in crores Previous Nine months ended Quarter ended Year ended Year ended December 31 March 31 March 31 March 31 2005 2006 2005 2006 2005 1 Segment Revenue (a)Tea 761.18 218.58 217.88 979.76 884.29 (b)Others 1.70 0.22 2.51 1.92 12.55 762.88 218.80 220.39 981.68 896.84 Less: Inter Segment Revenue - - - - - Net Segment Revenue 762.88 218.80 220.39 981.68 896.84 2 Segment Results (a)Tea 185.58 20.08 5.81 205.66 152.53 (b)Others (0.75) 0.06 0.03 (0.69) (0.87) 184.83 20.14 5.84 204.97 151.66 Less: Interest(net) 7.25 1.72 1.47 8.97 8.47 Add : Unallocable income net of unallocable expenditure 26.54 7.98 21.76 34.52 18.96 Total Profit before Tax 204.12 26.40 26.13 230.52 162.15 3 Segment Capital Employed (a)Tea 346.50 315.91 398.67 315.91 398.67 (b)Others (0.53) (0.48) 2.46 (0.48) 2.46 Notes: 1 The definitions of the internal business segmentation and the activitities 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 exceptional income (net). R. K. Krishna Kumar Mumbai: June 6, 2006 (Vice Chairman) Audited Consolidated Financial Results for the year ended March 31, 2006 Rs in rores Previous Year ended Year ended March 31, 2006 March 31, 2005 Income from Operations 3123.92 3059.13 Income from Investments (net) 26.94 17.40 Total Income 3150.86 3076.53 Total Expenditure 2561.45 2519.39 (a) (Increase)/Decrease in stock (12.94) (23.22) (b) Purchases for Trading / Raw Materials 723.21 707.77 Consumed (c) Staff Costs 421.10 499.80 (d) Advertisment and Sales Charges 664.19 608.63 (e) Other Expenditure 765.89 726.41 Profit before Interest and Depreciation 589.41 557.14 Interest (Net) 102.43 122.76 Gross Profit after Interest but before Depreciation and Taxation 486.98 434.38 Depreciation 75.84 77.85 Profit before Tax and Exceptional Items 411.14 356.53 Exceptional Income/ (Expenditure) 7.26 (42.81) Profit before Tax 418.40 313.72 Provision for Taxation (a) Current Taxation 121.44 100.78 (b) Deferred Taxation (3.58) (6.93) Profit after Tax 300.54 219.87 Share of Profit from Associated Undertakings 11.70 9.79 Minority Interest 13.09 16.02 Reversal of share of loss of earlier years in respect of an associate company divested during the year - 1.83 Group Consolidated Net Profit 299.15 215.47 Paid up Equity Share Capital(face value of Rs 10 each) 56.22 56.22 Reserves excluding Revaluation Reserve 1491.52 1440.89 Basic Earnings per Share (Rs) 53.21 38.33 Diluted Earnings per Share (Rs) 49.40 36.74 NOTES 1. The Tata Tea Group of Companies registered a consolidated total incomeof Rs 3150.86 crores for the year which was 2% higher than the income for thepreceding year. Of the current year's consolidated income, 88% was contributedby the Group's world wide branded tea business which registered growth in allkey markets. 2. The consolidated Profit before Tax and exceptional items at Rs 411.14crores and the Group Consolidated Profit after Tax at Rs 299.15 crores increasedby 15% and 39%, respectively. 3. Exceptional items during the year represents profit on sale of theholding company's undertaking comprising of certain estates in South India netof expenses - Rs 8.70 crores, curtailment gain in an overseas subsidiary onaccount of closure of their defined benefit scheme - Rs 14.39 crores and writeback of liabilities - Rs 5.52 crores partly offset by amortization of amountsexpended on Employee Separation Scheme in the holding company and an Indiansubsidiary (Rs 8.39 crores), reorganization expenses in an overseas subsidiary(Rs 4.46 crores) and commercial taxes in respect of a discontinued business (Rs8.50 crores). The previous year figures included amortization of refinance cost(Rs 32.89 crores) and reorganization charges in an overseas subsidiary (Rs 12.41crores). 4. Diluted earnings per share have been calculated after considering theoption available to investors on the conversion of loan notes issued by anoverseas subsidiary to the Company and other Tata Companies. 5. The consolidated financial results of the Tata Tea Group of companieshave been prepared in accordance with the Accounting Standard AS-21 onConsolidated Financial Statements, AS-23 on Accounting for Investments inAssociates in Consolidated Financial Statements and AS-27 on Financial Reportingfor Interests in Joint Ventures issued by the Institute of Chartered Accountantsof India. 6. Under Indian GAAP, The Tetley Group's (the Company's 98.58% subsidiary)Income from Operations was Rs 2033.16 crores for the Financial Year 2005/06 asagainst Rs 1940.30 crores for the preceding year, an increase of 5%. The Profitbefore tax and exceptional items Rs 196.91 crores and Profit after Tax at Rs146.55 crores, increased by 13% and 83%, respectively. 7. During the year, The Tetley Group (the Company's 98.58% subsidiary) haschanged its accounting policy for pension costs to comply with the requirementsof FRS 17 which has become mandatory in the UK. In line with the requirements ofFRS17 an amount of Rs 128.17 crores, net of tax, representing an estimate of theopening scheme deficit of Rs 109.01 crores and actuarial losses during the yearof Rs 19.16 crores has been charged against opening reserves. 8. Previous year's figures have been regrouped, to the extent necessary, toconform to current year's figures. 9. The aforementioned results were reviewed by the Audit Committee of theBoard on June 2, 2006 and subsequently taken on record by the Board of Directorsat its meeting held on June 6, 2006. (R.K. Krishna Kumar) Mumbai, June 6, 2006 Vice Chairman This information is provided by RNS The company news service from the London Stock Exchange