FMCG major Tata Tea Ltd on Tuesday reported a 43% fall in net profit at Rs 45.68 crore for the quarter ended June 30 as compared to Rs 80.07 crore for the quarter ended June 30, 2006. Total income went up 27% from Rs 806.3 crore to Rs 1028.crore. The group has spent Rs 65.61 crore during the quarter as interest on borrowing for acquisitions. ?Interest on borrowings on a bridge loan taken to finance the acquisition of Energy Brands amounting to Rs 10.89 crore has taken a toll on profitability. It is, however, expected that these loans will be repaid by the middle of the current year,? according to Tata Tea.
The Tata Tea stock fell 4% on the BSE on Tuesday, to close at Rs 821.20. The company also announced that the sale of its share in Energy Brands of the US to Coca Cola Company for $1 billion is likely to yield a profit of approximately $415 million.
Announcing the results, Percy Siganporia, managing director of Tata Tea said: ” The group’s net profit was lower than previous year, mainly due to higher ad spend and promotional expenditure.”
Zee profit after tax up 51%
Zee Entertainment Enterprises Ltd has posted a profit after tax of Rs 81.27 crore for the quarter ended June 30 compared to Rs 53.91 crore for the same period ended June 30, 2006, up 50.6%. Total income went up by 35.7% from Rs 304.1 crore in June 30, 2006, to Rs 412.8 crore for the quarter ended June 30, 2007.
LIC Housing profit up 25%
LIC Housing Finance posted a 24.66% rise in profit after tax at Rs 46.70 crore for the quarter ended June 30 compared to Rs 37.46 crore for the same quarter last year. The total income was up 36.06% to Rs 463.53 crore for the quarter ended June 30 from Rs 340.66 crore in the corresponding quarter a year ago, LIC Housing informed the Bombay Stock Exchange (BSE). Shares of the company closed at Rs 213.95 on Tuesday, down 0.53% on the BSE.