MUMBAI, June 11: Tata Tea has fared well during the year ended March 1997. The directors have stepped up the dividend to 65 % which, togther with the new tax on dividends, would represent a total cost to the company of 71.50 % against 60 % paid last year.

The total income during the year was substantially higher at Rs 717.44 crore against Rs 543.32 crore. The company has earned a higher gross profit of Rs 94.89 crore (Rs 79.52 crore) despite higher interest cost of Rs 30.22 crore against Rs 17.34 crore. After depreciation of Rs 12.27 crore (Rs 9.74 crore) and taxation of Rs 24 crore (Rs 23.70 crore), the net profit amounted to Rs 58.62 crore against Rs 46.08 crore last year.

After certain ajdustments, the surplus available for appropriation amounted to Rs 70.60 crore against Rs 61.12 crore. The proposed dividend will absorb Rs 31.60 crore against Rs 29.17 crore and tax on dividend will be Rs 3.16 crore. A sum of Rs 25 crore (Rs 20 crore) has been transferred to general reserve, leaving a balance surplus of Rs 10.84 crore (Rs 11.95 crore) which has been carried forward.

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