KOLKATA, Oct 30 (UNI) Tata Tea Ltd today annouced its results for quarter ended September, 2007, reported income from operations for the quarter at Rs 319.05 crore which increased by 16 per cent and operating profit at Rs 67.87 crore which increased by 8 per cent over the corresponding period of the previous year.
The profit was attributed mainly by higher branded tea volumes which have grown by 15 per cent but lower plantation performance primarily due to lower prices. The company's branded tea portfollo has displayed robust growth ahead of industry norms.
The profit before tax was at Rs 84.32 crore and profit after tax stood at Rs 64.81 crore, however, lower compared to corresponding quarter of previous year mainly due to a charge for interest on loans for acquisitions in the current period on account of Energy Brand Acquisition, absence of one time dividend from long term investments and exceptional profits on sale of shares received in the corresponding quarter of the privious year.
Although operational profits have improved, the overall profit after tax has been impacted by absence of favourable non operational items compared to corresponding quarter of previous year.
Tata Tea has during this quarter acquired 15 per cent shares of Mount Everest Mineral Water Company Ltd (MEMWL) through preferential issue of equity shares. The Company has deposited amounts in escrow to acquire 9.15 per cent of equity stake from the promoters of MEMWL and for acquiring upto 20 per cent of its share capital through open offer from the shareholders of MEMWL.
The Company's open offer to MEMWL shareholders was in progress.
The Company has taken management control of MEMWL with effect from August last and accordingly the MEMWL has become a subsidiary.