Tata Global Beverages, erstwhile Tata Tea, on Tuesday reported a 19% increase in its consolidated sales for 2009-10 at Rs 5,783 crore. Consolidated profit after interest before exceptional items stood at Rs 625 crore compared with Rs 526 crore in the previous year, up 19%. The company reported a decline in the net profit to Rs 390 crore because of an exceptional income of Rs 730 crore earned in 2008-09.
The company attributed the increase in profits to improved operating performance and low interest costs. It was able to offset the increase in raw material costs because of improved price realisations. ?Overall, the volume growth remained muted at 2% whereas in terms of value, the company saw over 20% growth,? Percy Siganporia, MD, Tata Tea, said. ?Realisations were better as we took a 20% price increase in 2009-10.?
According to the management, Tata Global Beverages is now the market leader in India in terms of both value and volumes. ?We have a volume share of around 18%-19% and a value share of 21.5%.
