Tata Global Beverages posted 82% decline in its consolidated net profit at Rs 51.61 crore in the September quarter against Rs 287.44 crore in the same period last year. However, during the September 2009 quarter, the company had a one-time gain of Rs 220 crore, that included sale of shares in Rallis India (Rs 186 crore), and forex gains and currency hedges in overseas subsidiaries (Rs 40 crore). Profit before exceptional items during the quarter stood at Rs 111 crore, down 31% compared to Rs 162 crore in the year-ago period, owing to higher commodity costs and expenditure on growth initiatives.
Exceptional items for the quarter under review included expenses relating to restructuring of business (Rs 28 crore) and translation impact on foreign currency hedges in overseas subsidiaries (Rs 4 crore).
For the second quarter, the company reported an increase in its net sales at 3% at Rs 1438.90 crore as against Rs 1397.29 crore in the year-ago period. The profit from operations before other income, interest and exceptional items stood at Rs 104.11 crore as against Rs 148.14 crore in the September 2009 quarter, a decline of 29.7%. The major part of the company’s business comes from operations outside India and through its subsidiaries. On a segment basis, the revenue from tea segment rose 4% at Rs 1101.18 in the current quarter, in comparison to Rs 1061.02 crore in the same quarter last fiscal.