Tata Global Beverages Posts Steady Growth In June Quarter

Tata Global Beverages, the second largest tea producer in world, posted steady growth in the first quarter of fiscal 2014 as compared to that in the corresponding period last year. On a consolidated basis, its revenue grew 5% to Rs 1813 crore on a yearly basis mainly due to increased sales in its tea segment. Its other segment, coffee, saw a drop of 2% to Rs 468.6 crore in its revenues. The other income remained unchanged in this period at Rs 18.34 crore.

On the expenses front, the company's total operating expenditure for Q1FY14 moved up by 4%, touching Rs 1606 crore on a YoY basis. Its primary expenses and cost of raw material rose by 3% to Rs 827 crore. Along with this, its other expenses and advertising & sales costs have also showed a considerable increase, which has led to an increase in the overall expenses.

In this quarter, the company's operating income marked a significant growth of 15% to Rs 207 crore over that of Rs 181 crore in the similar period last fiscal. Further, inspite of a hike in finance and tax expenses, the company saw a rise of 38% in its bottomline to touch Rs 136 crore. This was primarily due to the increase in exceptional items, which stood at Rs 22 crore by showing an addition of Rs 27 crore. Excluding the exceptional items, the bottomline growth would be just 15%. The bank’s operating margins and net margins climbed by 94 basis points and 178 basis points respectively.

In response to the steady performance of the company in June quarter of FY14, its share price declined by 8%, closed at Rs 147 as on August 1.