TGBL.L Regulatory News (TGBL)

29 Oct 2007 14:30

Tata Tea Limited29 October 2007 Tata Tea Limited Registered Office: 1 Bishop Lefroy Road Kolkata-700020 Audited Financial Results for three months ended September 30, 2007 Rs in crores Previous Three months ended Six months ended Year ended September 30 September 30 31st March 2007 2006 2007 2006 2007 Income from Operations 319.05 274.00 609.06 528.35 1,070.35 Total Expenditure 248.69 207.44 481.37 410.66 891.21 (a) (Increase) / Decrease in stock (11.46) (34.07) (19.31) (45.16) (15.59) (b) Consumption of raw materials 88.76 75.81 189.14 159.32 322.63 (c) Purchase of traded goods 7.72 19.23 7.81 19.79 32.55 (d) Staff Costs 55.82 48.10 103.82 92.45 179.15 (e) Depreciation 5.31 10.08 4.79 9.33 18.54 (f) Other Expenditure 102.54 93.58 189.83 174.93 353.93 Profit before Interest 70.36 66.56 127.69 117.69 179.14 Interest (Net) 2.49 3.85 5.24 6.80 11.63 Profit before Tax from Operations 67.87 62.71 122.45 110.89 167.51 Other Income - Income from Investments (Net) 29.00 48.78 42.84 60.01 75.76 Interest on Loans for acquisition (10.60) - (21.49) - (26.68) Profit before Tax and exceptional items 86.27 111.49 143.80 170.90 216.59 Exceptional Income / (Expenditure) (Net) (1.95) 68.00 (1.10) 65.80 133.18 Profit before Tax 84.32 179.49 142.70 236.70 349.77 Provision for Taxation (a) Current 19.31 14.98 34.35 27.38 40.30 (b) Deferred (0.45) (0.06) (0.71) (0.36) 0.25 (c) Fringe Benefit Tax 0.65 0.65 1.25 1.20 2.65 Profit after Tax 64.81 163.92 107.81 208.48 306.57 Less : Profit after tax from North India Plantation Division- Refer Note 4 24.06 30.43 23.28 33.78 18.27 Profit after tax excluding North India Plantation 40.75 133.49 84.53 174.70 288.30 Division Paid up Equity Share Capital (face value of Rs 10 61.84 56.22 61.84 56.22 59.03 each) Reserves excluding Revaluation Reserves - - - - 1,462.83 Earnings per share (Basic & diluted) (Not 10.48 29.16 17.57 37.08 53.56 annualised) - Rs Earnings per share excluding North India Plantation 6.59 23.74 13.78 31.07 50.37 Division (Basic & diluted) (Not annualised) - Rs Aggregate of Public Shareholding (excludes shares held against GDRs) -Number of Shares 399,19,634 39,859,496 399,19,634 39,859,496 39,917,866 -Percentage of Share holding 64.55% 70.90% 64.55% 70.90% 67.62% Notes: 1. Income from Operations for the quarter at Rs 319.05 crores increased by16% and Operating Profit at Rs 67.87 crores increased by 8% over thecorresponding period of the previous year mainly driven by higher branded teavolumes which have grown by 15% but lower plantation performance primarily dueto lower prices. 2. The Profit before Tax at Rs 84.32 crores and Profit after Tax at Rs. 64.81crores are lower compared to corresponding quarter of previous year mainly dueto a charge for interest on loans for acquisitions in the current period,absence of one time dividend from long term investments and exceptional profitson sale of shares received in the corresponding quarter of the previous year. 3. Exceptional items during the quarter represent amortization of amountsincurred on Employee Separation Scheme of Rs 2.20 crs net of profit on sale ofland in South India of Rs 0.25 crs. In the previous year exceptional itemsincluded profit on sale of shares of Rs. 70.25 crores. 4. In terms of the Scheme of Arrangement approved by the shareholders andsubmitted to the Hon'ble High Court at Calcutta under Section 391 - 394 of theCompanies Act 1956, the North India Plantations of the Company will betransferred to Amalgamated Plantations Pvt Limited (APPL) with effect from April1, 2007. As provided in the scheme, the company is carrying on all business andactivities relating to the North India Plantation Division (NIPD) for and onaccount of and in trust for APPL. The scheme is pending for approval with theHon'ble Calcutta High Court and on the scheme being sanctioned, the net profitfor the period from 1st April to 30th September 2007 amounting to Rs. 23.28crores will be transferred to APPL and the same has been disclosed separately.Earnings per share (EPS) has also been disclosed separately for the operationsexcluding NIPD. Credit has not been taken for the Profit on transfer of NIPDamounting to approximately Rs. 148 crores (pre-tax) which will accrue to theCompany on the Scheme becoming effective. 5. The Company has during this quarter acquired 15% equity stake of MountEverest Mineral Water Company Ltd (MEMWL) through preferential issue of equityshares. The Company has deposited amounts in escrow to acquire a further 9.15%of equity stake from the promoters of MEMWL and for acquiring upto 20% of itsshare capital through open offer from the shareholders of MEMWL. The Company'sopen offer to MEMWL shareholders is in progress. The Company has takenmanagement control of MEMWL with effect from August 22, 2007 and accordingly ithas become a subsidiary from the said date. 6. Interest on loans taken for acquisition represents interest on bridgeloans to finance acquisition of 25% stake in Energy Brands Inc. in the previousyear by the Company's subsidiary the Tetley Group. The sale of the said stakehas been concluded in October 2007 for an aggregate consideration of $1.02billion and would result in a pre-tax profit of approximately $415 million inthe Tetley Group, of which the company's share is $323 million. 7. In view of the seasonality of the cropping pattern in the North IndiaPlantation operations and in accordance with the accounting practiceconsistently followed in the past for quarterly and half yearly results, stockof teas in the North India Plantation Operations as on September 30, 2007 hasbeen valued at the lower of estimated cost of production (full year productionand expenditure) and net realizable value. 8. During the current quarter, the Company has not received any investorcomplaints and there were no complaints pending either at the beginning or endof the quarter. 9. Previous period's figures have been regrouped, to the extent necessary, toconform to current period's figures. 10. The aforementioned results were reviewed by the Audit Committee of theBoard on October 26, 2007 and subsequently taken on record by the Board ofDirectors at its Meeting held on October 29, 2007. The statutory auditors of thecompany have audited these results. Ratan N Tata (Chairman) Mumbai: October 29, 2007 Unaudited Consolidated Segment wise Revenue, Results and Capital Employed, under Clause 41, of the Listing Agreement for the Quarter ended September 30, 2007 (Rs. In crores) Particulars Three months Six months Previous year ended ended ended March 31st September 30th September 30th 2007 2007 20071. Segment Revenue (a) Tea 861.64 1665.96 3332.19 (b) Coffee & Other Produce 227.31 435.04 692.26 (c) Others 4.94 10.09 18.79 (d) Unallocated 23.01 34.60 59.98 Total 1116.90 2145.69 4103.22Less : Inter Segment Revenue - - - Total Revenue 1116.90 2145.69 4103.22 2. Segment Results (a) Tea 159.98 277.12 578.83 (b) Coffee & Other Produce 37.07 67.82 101.90 (c) Others 0.71 1.23 1.13 Total 197.76 346.17 681.86 Add/ i) Interest (29.50) (58.51) (106.82)(Less): ii) Interest on loans for acquisition (36.46) (102.07) (166.11) iii) Exchange gain on Foreign Currency Loan 9.62 22.06 34.72 iv) Other Un-allocable Expenditure net off (8.04) (9.53) 121.96 Un-allocable income Total 133.38 198.12 565.61ProfitbeforeTax 3. Capital Employed (a) Tea 2991.74 2991.74 2957.01 (b) Coffee & Other Produce 1270.83 1270.83 1278.84 (c) Others 5.74 5.74 6.22 (d) Unallocated (1326.58) (1326.58) (1459.39) Total 2941.73 2941.73 2782.68 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 and sales of coffee, pepper and other plantation crops and sales of coffee converted into value added products such as roast and ground coffee & instant coffee. Others : 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 and includes Exceptional items. Unallocable income includes income from investments. c. Comparative figures for previous periods have not been given, as consolidated segment results are being reported, as required under clause 41 of the listing agreement, with effect from this quarter. Ratan N Tata (Chairman) Mumbai: October 29, 2007 Unaudited Consolidated Financial Results ( Provisional ) for the three months ended September 30, 2007 Rs in crores Previous Three months ended Six months ended Year ended September 30 September 30 31st March 2007 2006 2007 2006 2007 Income from Operations 1096.47 973.96 2116.62 1,772.88 4,044.55 Total Expenditure 914.23 819.60 1792.23 1,481.03 3,409.56 (a) (Increase) / Decrease in stock 16.35 (33.24) (22.75) (86.37) (47.31) (b) Consumption of raw materials 248.43 211.34 523.75 412.03 921.25 (c) Purchase of traded goods 29.71 49.30 63.47 80.37 172.96 (d) Staff Costs 146.48 132.05 282.32 241.89 492.53 (e) Advertisement & Sales charges 209.35 210.59 423.27 360.63 846.70 (f) Depreciation 24.04 25.77 49.79 45.98 96.71 (g) Other Expenditure 239.87 223.79 472.38 426.50 926.72 Profit before Interest 182.24 154.36 324.39 291.85 634.99 Interest (Net) 29.50 28.00 58.51 51.63 106.82 Profit before Tax from Operations 152.74 126.36 265.88 240.22 528.17 Other Income - Income from Investments (Net) 20.43 40.98 29.07 48.43 58.67 Interest on Loans for acquisition (36.46) (19.15) (102.07) (22.96) (166.11) Exchange gain on restatement of Foreign Currency 9.62 - 22.06 - 34.72 Loan Profit before Tax and exceptional items 146.33 148.19 214.94 265.69 455.45 Exceptional Income/(Expenditure) (Net) (12.95) 66.96 (16.82) 65.15 110.16 Profit before Tax 133.38 215.15 198.12 330.84 565.61 Provision for Taxation (a) Current Tax 39.41 25.91 48.15 57.75 96.35 (b) Deferred Tax (2.94) 0.02 1.60 (0.28) 3.38 (c) Fringe Benefit Tax 0.86 0.86 1.61 1.56 7.87 Profit after Tax 96.05 188.36 146.76 271.81 458.01 Share of Profit from Associates 24.98 10.65 21.62 9.71 17.95 Minority Interest in Consolidated Profit 11.79 4.93 13.46 7.37 32.61 Group Consolidated Net Profit 109.24 194.08 154.92 274.15 443.35 Less : Profit after tax relating to North India 24.06 30.43 23.28 33.78 18.27 Plantation Division -Ref Note 6 Profit after tax excluding North India Plantation 85.18 163.65 131.64 240.37 425.08 Division Paid up Equity Share Capital(face value of 61.84 56.22 61.84 56.22 59.03 Rs 10 each) Reserves excluding Revaluation Reserves - - - - 2,044.20 Earnings per share (Basic ) (Not annualised) - Rs 17.67 34.52 25.25 48.76 77.46 Earnings per share (Basic) excluding North India 13.77 29.11 21.45 42.76 74.27 Plantation Division (Not annualised) - Rs Earnings per share (Diluted )(Not annualised) - 17.67 34.17 25.25 47.50 77.46 Rs Aggregate of Public Shareholding (excludes shares held against GDRs) -Number of Shares 399,19,634 39,859,496 399,19,634 39,859,496 39,917,866 -Percentage of Share holding 64.55% 70.90% 64.55% 70.90% 67.62% Notes: 1. The consolidated Income from Operations for the quarter at Rs 1096.47crores increased by 13% and Operating Profit at Rs. 152.74 crores increased by21% over the corresponding quarter of the previous year mainly driven by higherbranded tea sales across the group and higher coffee sales. 2. The Profit before Tax for the quarter at Rs 133.38 crores is lower thanthat of the corresponding quarter of the previous year due to higher interest onloans for acquisitions, and lower dividend and exceptional income. Resultantly,the Consolidated Net Profit at Rs 109.24 crores is lower than that for theprevious period, which also reflects the impact of the higher effective taxrate. 3. Interest on loans taken for acquisitions mainly represent interest onloans taken to finance acquisition of 25% stake in Energy Brands Inc, and ofEight O' Clock Coffee. The sale of the stake in Energy Brands Inc. has beenconcluded in October 2007 for an aggregate consideration of $1.02 billion andwould result in a pre-tax profit of approximately $415 million in the TetleyGroup of which Tata Tea's share is $323 million. 4. Under Indian GAAP, the turnover of The Tetley Group (in which the Companytogether with its subsidiaries has a 77.78% shareholding) for the second quarterof its Financial Year 2007/08 at Rs 553.78 crores was 2% higher than thecorresponding quarter of the previous year. The Operating Profit earned duringthe quarter was higher at Rs 48.59 crores (previous quarter Rs 32.58 crores)reflecting favourable phasing of advertisement expenses and lower operationalcosts. The Net Profit after Tax was Rs 26.24 crores (previous quarter Rs 18.75crores). 5. Exceptional items during the quarter mainly represent amortization ofamounts expended on Employee Separation Scheme in the holding company and anIndian subsidiary and reorganization and other one time costs in an overseassubsidiary. The previous quarter's figure included profit on sale of shares inthe holding company and is net of amortization of amounts expended on EmployeeSeparation Scheme in the holding company and an Indian subsidiary. 6. In terms of the Scheme of Arrangement approved by the shareholders andsubmitted to the Hon'ble High Court at Calcutta under Section 391 - 394 of theCompanies Act 1956, the North India Plantations of the Holding company will betransferred to Amalgamated Plantations Pvt Limited (APPL) with effect from April1, 2007. As provided in the scheme, the Holding company is carrying on allbusiness 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 approvalwith the Hon'ble Calcutta High Court and on the scheme being sanctioned, thenet profit for the period from 1st April to 30th September 2007 amounting to Rs.23.28 crores will be transferred to APPL and the same has been disclosedseparately . Earnings per share (EPS) has also been disclosed separately for theoperations excluding NIPD. Credit has not been taken for the Profit on transferof NIPD amounting to approximately Rs. 148 crores (pre-tax) which will accrue tothe Holding company on the Scheme becoming effective. 7. The share of profit/(loss) of Estate Management Services Pvt Ltd, SriLanka, an associated undertaking and Mount Everest Mineral Water Company Ltd,which has become a subsidiary with effect from 22nd August 2007 have not beenconsidered for the current quarter pending finalization of results for therelevant period. Based on provisional estimates the share of profit/ (loss) inthe said entities is not material. 8. Previous period's figures have been regrouped, to the extent necessary, toconform to current period's figures. 9. The aforementioned results were reviewed by the Audit Committee of theBoard on October 26, 2007 and subsequently taken on record by the Board ofDirectors at its meeting held on October 29, 2007. Limited review of the resultshas been completed by the auditors. Ratan N Tata (Chairman)Mumbai: October 29, 2007 This information is provided by RNS The company news service from the London Stock Exchange