Tata Tea Q1 profit down by 3.5 percent

Mumbai, July 17(UNI) World's second largest branded tea maker Tata Tea Limited had a 3.5 percent fall in Q1 profits, which were down to Rs 43 crore from Rs 44.56 crore in the corresponding period of last fiscal.

Tata Tea MD Mr P T Siganporia attributed the profit dip to higher tax rate, which came about due to the exit from plantation business.

''This is due to higher tax rates in certain segments. However, the growth pace is not affected as the company has succeeded to maintain quarter on quarter growth for successive 17 times, which was mainly driven by sales in branded tea segment'', he said.

The cosolidated profits for the quarter, which is at Rs 45.68 crore, has been largely impacted by the interest on bridge loan taken to finance the acquisition of Energy brands Inc amounting to Rs 10.89 crore, said Mr Siganporia.

The sale of Tata tea's share in Energy brands to Coca Cola is likely to yield a profit of approximate 415 million US dollars.

In line with the company's strategy of strengthening the specialty tea segment in overseas market, the company recently acquired specialty tea brand Vitax of Poland, which would be funded by its Tetley group subsidiary.

Tata tea had launched 'Tata tea life', its new flavoured product, early this year, making its foray into the health drink segment in the domestic market.

Tata tea's scrip in the Bombay Stock Exchange(BSE) today ended at Rs 821.20, down by Rs 34.30 from the previous close of Rs 855.50.

UNI