Tata Tea's income from operations up by 7 per cent

Kolkata, Oct 31 (UNI) The standalone Tata Tea results today reported income from operation of Rs.270 crores, an improvement of around 7 per cent over the previous year's corresponding quarter despite exit from a major part of the South India plantations. The profit before tax and exceptional items at Rs. 111.49 crores was higher than the preceding year's corresponding quarter by 32 per cent.

Exception income during the quarter represent profit on sale of investment of Rs. 70.24 crores net of amortization on employee separation scheme of Rs. 2.24 crores.

The company's consolidated worldwide total income for the second quarter was Rs 1015 crores, an improvement by 27 per cent over the preceeding year's turnover for the corresponding period driven by higher branded tea sale coupled with the inclusion of income pertaining to the acquisition of Good Earth, Jemca and Eight O'clock Coffee.

The consolidated profit after tax was at Rs. 194 crores was higher compared to previous year's second quarter figure of Rs. 101.21 crores by 160 per cent due to higher exceptional income the current year.

Under Indian GAAP, the Tetley Groups (the company's 98.58 per cent) UK subsidiary) turnover for the second quarter of its financial year 2006-07 at Rs. 542.36 corres was 11 per cent higher than the corresponding quarter of the previous year. The profit before tax and exceptional items was Rs.28.00 crores and the profit after tax wa s Rs. 18.75 crores compared to Rs. 43.52 crores and Rs.

28.31 crores in the previous year's corresponding quarter.

Lower profitability during the quarter reflects higher tea and promotional cost over higher interst costs due to recent acquisitions.

UNI TJP SJC RN1922