REG - Tata Consumer Prod. - 1st Quarter Results
RNS Number : 7622WTata Consumer Products Limited20 August 2020
Tata Consumer Products Limited
(Formerly Tata Global Beverages Limited)
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com
Unaudited Consolidated Financial Results for the quarter ended June 30, 2020
Rs. in Crores
Particulars
Three months ended
Year ended
June 30,
2020March 31,
2020June 30,
2019 *March 31,
2020Unaudited
Refer Note 7
Unaudited
Audited
Revenue from Operations
2713.91
2405.03
2392.36
9637.42
Other Income
32.71
21.93
33.09
111.59
Total Income
2746.62
2426.96
2425.45
9749.01
Cost of Materials Consumed
1013.85
872.98
879.21
3606.66
Purchase of stock in trade
533.32
483.56
409.91
1796.24
Changes in inventories of finished goods, work in progress and stock in trade
(46.55)
(44.60)
75.79
7.78
Employee Benefits Expense
229.05
231.57
213.76
884.80
Finance Costs
17.28
18.70
18.63
77.86
Depreciation and Amortisation Expense
61.90
64.04
57.57
241.71
Advertisement and Sales charges
133.76
181.37
131.28
676.72
Other Expenses
367.83
371.79
331.54
1373.07
Total Expenses
2310.44
2179.41
2117.69
8664.84
Profit before Exceptional Items and Tax
436.18
247.55
307.76
1084.17
Exceptional Items (Net)
63.31
(264.39)
(8.06)
(274.79)
Profit before Tax
499.49
(16.84)
299.70
809.38
Tax Expense
Current tax
(27.10)
(28.73)
(18.27)
(89.05)
Deferred tax
(83.30)
(4.64)
(83.91)
(185.14)
Total Tax Expense (Net)
(110.40)
(33.37)
(102.18)
(274.19)
Net Profit after Tax
389.09
(50.21)
197.52
535.19
Share of net profit/(loss) in Associates and Joint Ventures using equity method
(43.54)
(72.27)
(7.43)
(75.08)
Group Consolidated Net Profit (A)
345.55
(122.48)
190.09
460.11
Attributable to :
Owners of the Parent
327.56
(76.49)
173.74
459.76
Non Controlling Interest
17.99
(45.99)
16.35
0.35
Other Comprehensive Income
i) Items that will not be reclassified to profit or loss
Remeasurement of the defined benefit plans
(61.73)
83.67
(3.86)
31.18
Changes in fair valuation of equity instruments
1.60
6.08
4.04
12.50
(60.13)
89.75
0.18
43.68
Tax impact on above items
7.14
(13.21)
2.61
(3.31)
(52.99)
76.54
2.79
40.37
ii) Items that will be reclassified to profit or loss
Exchange differences on translation of foreign operations
(10.22)
21.06
(90.61)
225.69
Gains/(loss) on Effective portion of cash flow hedges
(38.27)
(37.11)
22.92
13.48
(48.49)
(16.05)
(67.69)
239.17
Tax impact on above items
8.25
15.44
(5.67)
1.94
(40.24)
(0.61)
(73.36)
241.11
Total Other Comprehensive Income (B)
(93.23)
75.93
(70.57)
281.48
Attributable to :
Owners of the Parent
(80.85)
65.71
(57.80)
233.89
Non Controlling Interest
(12.38)
10.22
(12.77)
47.59
Total Comprehensive Income (A+B)
252.32
(46.55)
119.52
741.59
Attributable to :
Owners of the Parent
246.71
(10.78)
115.94
693.65
Non Controlling Interest
5.61
(35.77)
3.58
47.94
Paid-up equity share capital (Face value of Re 1 each)
92.16
92.16
92.16
92.16
Reserves excluding Revaluation Reserve
13700.84
Earnings per share (Basic & Diluted) (not annualised for the quarter) - Rs
3.55
(0.83)
1.89
4.99
* Restated (Refer Note 6)
Notes:
1. For the quarter, Revenue from operations is higher by 13% (11% in constant currency) as compared to corresponding quarter of the previous year led by volume and value growth in branded business both in India and International. Profit before exceptional items and tax at Rs 436 Crores is higher by 42% as compared to corresponding quarter of the previous year, mainly on account of higher revenue and lower level of expenditure including commodity costs. Group Consolidated Net Profit is higher as compared to corresponding quarter of the previous year on account of higher exceptional items partly offset by higher shares of losses in Associates & Joint Ventures.
2. The Company along with its subsidiaries and affiliates continues to manufacture and supply essential food and beverage items in domestic and international markets in the current COVID environment. The demand for the Group's food and beverage products for in home consumption was buoyant, whereas business segments in out of home consumption were adversely impacted, with an overall favourable impact on the revenue from operations. Share of profit/(loss) from Associates/Joint Ventures were impacted due to the adverse impact of COVID on operations of Tata Starbucks. Lock down conditions will have adverse impact on out of home segments, may cause supply constraints and result in commodity cost volatility. Based on the trends observed, there is some tapering off of demand across geographies and significant hardening of commodity costs in India. Impact on future operations would to a large extent depend on how the pandemic develops.
3. Exceptional item for the current quarter represent gain of Rs 84 Crores on conversion of a Joint Venture into a Subsidiary (Refer Note 4) and costs relating to the business integration of foods business Rs 21 Crores. Exceptional items for the corresponding quarter of the previous year represent costs relating to scheme of merger.
4. The Parent Company has acquired 50% stake of PepsiCo India Holdings Pvt. Ltd. in NourishCo Beverages Limited, consequently converting the Joint Venture into a wholly owned subsidiary with effect from May 18, 2020.
5. Share of profits/(loss) in Associates and Joint Ventures include the profits/(loss) of an Associate operating in North India plantations, which are seasonal in nature.
6. Figures of the quarter ended June 30, 2019 as reported have been restated consequent to the demerger and transfer of Consumer Product Business (foods business) of Tata Chemicals Limited with the Company as the 'Appointed date' of the Scheme was April 1, 2019.
7. Figures of the quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the full financial year and year to date figures up to the third quarter of the relevant financial year.
8. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
9. The aforementioned results were reviewed by the Audit Committee of the Board on August 3, 2020 and subsequently taken on record by the Board of Directors at its Meeting held on August 4, 2020. The Statutory Auditors of the Company have conducted limited review on these results.
10. The Consolidated and Standalone result for the quarter ended June 30, 2020 are available on the BSE website (URL: www.bseindia.com), the National Stock Exchange website (URL: www.nseindia.com) and on the Company's website (URL: www.tataconsumer.com).
Mumbai: August 4, 2020
Sunil D'Souza
Managing Director and CEO
Tata Consumer Products Limited
(Formerly Tata Global Beverages Limited)
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com
Consolidated Segment wise Revenue, Results, Assets and Liabilities for the quarter ended June 30, 2020
Rs. in Crores
Particulars
Three months ended
Year ended
June 30,
2020
March 31, 2020
June 30, 2019 *
March 31, 2020
Unaudited
Refer Note 7
Unaudited
Audited
Segment Revenue
Branded Business
India - Beverages
1000.46
754.83
901.37
3376.89
India - Foods
589.06
524.44
495.22
2063.74
International - Beverages
867.38
874.41
754.28
3226.04
Total Branded Business
2456.90
2153.68
2150.87
8666.67
Non Branded Business
264.42
251.28
242.92
974.94
Total Segment Revenue
2721.32
2404.96
2393.79
9641.61
Others
1.07
6.42
6.05
26.63
Less: Inter segment Sales
(8.48)
(6.35)
(7.48)
(30.82)
Revenue from Operations
2713.91
2405.03
2392.36
9637.42
Segment Results
Branded Business
India - Beverages
215.30
87.15
138.03
465.14
India - Foods
114.56
57.27
74.49
266.45
International - Beverages
125.49
128.51
79.24
360.76
Total Branded Business
455.35
272.93
291.76
1092.35
Non Branded Business
13.95
1.19
21.95
55.65
Total Segment Results
469.30
274.12
313.71
1148.00
Add/Less
Other Income
29.29
17.94
30.03
93.35
Finance Cost
(17.28)
(18.70)
(18.63)
(77.86)
Unallocable items
(45.13)
(25.81)
(17.35)
(79.32)
Exceptional Items
63.31
(264.39)
(8.06)
(274.79)
Profit Before Tax
499.49
(16.84)
299.70
809.38
Segment Assets
Branded Business
India - Beverages
1543.00
1554.03
1301.73
1554.03
India - Foods
6204.81
6231.66
6272.62
6231.66
International - Beverages
5355.44
5352.99
5248.25
5352.99
Total Branded Business
13103.25
13138.68
12822.60
13138.68
Non Branded Business
1575.68
1599.93
1541.49
1599.93
Total Segment Assets
14678.93
14738.61
14364.09
14738.61
Unallocable Corporate Assets
4308.73
3763.99
3058.66
3763.99
Total Assets
18987.66
18502.60
17422.75
18502.60
Segment Liabilities
Branded Business
India - Beverages
715.00
538.32
521.06
538.32
India - Foods
243.15
240.72
174.13
240.72
International - Beverages
754.15
759.99
634.80
759.99
Total Branded Business
1712.30
1539.03
1329.99
1539.03
Non Branded Business
158.34
186.98
155.34
186.98
Total Segment Liabilities
1870.64
1726.01
1485.33
1726.01
Unallocable Corporate Liabilities
1976.10
1869.26
1637.41
1869.26
Total Liabilities
3846.74
3595.27
3122.74
3595.27
* Restated (Refer Note 6)
Notes:
a. The Group has organised business into Branded Segment and Non Branded Segment. Branded Segment is further sub-categorised as India Beverages, India Foods and International Beverages. Accordingly, the group has reported its segment results for these segments.
b. Business Segments: The internal business segmentation and the activities encompassed therein are as follows:
i) Branded Business -
India Beverages : Sale of branded Tea, Coffee and Water in various value added forms
India Foods : Sale of food products in various value added forms
International Beverages : Sale of branded Tea, Coffee and Water in various value added forms
ii) Non Branded Business - Plantation and Extraction business for Tea, Coffee and other produce
c. The segment wise revenue, results, assets and liabilities figures relate to the respective amounts directly identifiable to each of the segments. Unallocable items includes expenses incurred on common services at the corporate level. Other Income excludes allocable income to segment results.
Tata Consumer Products Limited
(Formerly Tata Global Beverages Limited)
Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020
CIN - L15491WB1962PLC031425, Email : investor.relations@tataconsumer.com, Website : www.tataconsumer.com
Unaudited Standalone Financial Results for the quarter ended June 30, 2020
Rs. in Crores
Particulars
Three months ended
Year ended
June 30
2020
March 31
2020
June 30 *
2019
March 31
2020
Unaudited
Refer note 7
Unaudited
Audited
Revenue from Operations
1605.43
1335.31
1464.04
5690.24
Other Income
45.70
16.70
40.94
117.75
Total Income
1651.13
1352.01
1504.98
5807.99
Cost of materials consumed
603.91
527.09
578.87
2305.02
Purchase of stock-in-trade
340.15
287.42
252.29
1123.86
Changes in inventories of finished goods, work-in-progress & stock-in-trade
5.62
(26.40)
81.16
44.36
Employees benefits expense
71.77
74.35
67.89
283.44
Finance costs
6.53
6.79
5.88
25.73
Depreciation and amortisation expense
29.59
33.00
25.25
114.82
Advertisement and sales charges
56.49
107.92
72.65
384.91
Other expenses
201.81
204.55
178.22
744.63
Total Expenses
1315.87
1214.72
1262.21
5026.77
Profit before Exceptional Items and Tax
335.26
137.29
242.77
781.22
Exceptional Items (Net)
(21.00)
(41.41)
(8.06)
(51.81)
Profit before Tax
314.26
95.88
234.71
729.41
Tax Expense
Current Tax
(1.13)
2.11
-
0.61
Deferred Tax
(80.82)
(27.06)
(80.22)
(206.48)
Total Tax Expense (net of reversals)
(81.95)
(24.95)
(80.22)
(205.87)
Net Profit after Tax (A)
232.31
70.93
154.49
523.54
Other Comprehensive Income
i) Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans
(14.43)
(9.56)
(10.59)
(28.18)
Changes in fair valuation of equity instruments
1.60
4.67
3.48
9.84
(12.83)
(4.89)
(7.11)
(18.34)
Tax impact of above items
3.63
3.44
3.70
7.47
(9.20)
(1.45)
(3.41)
(10.87)
ii) Items that will be reclassified to profit or loss
Gains/(loss) on effective portion of cash flow hedges
(0.84)
(1.67)
0.12
(6.53)
Tax impact of above item
0.21
0.68
(0.04)
2.13
(0.63)
(0.99)
0.08
(4.40)
Other Comprehensive Income (B)
(9.83)
(2.44)
(3.33)
(15.27)
Total Comprehensive Income (A+B)
222.48
68.49
151.16
508.27
Paid-up equity share capital (Face value of Re. 1 each)
92.16
92.16
92.16
92.16
Reserves excluding Revaluation Reserves
10735.99
Earnings per share (Basic & Diluted) (not annualised for the quarter end) - Rs.
2.52
0.77
1.68
5.68
*Restated (Refer Note 6)
Notes:
1. For the quarter, Revenue from operations at Rs 1605 crores increased by 10% over corresponding quarter of the previous year due to improvements in volume and value realisation in both branded beverages and food business. Profit before exceptional items at Rs 335 crores is higher by 38% as compared to corresponding quarter of previous year due to growth in revenue coupled with lower commodity costs and lower spends on advertisement and sales charges. Profit after tax is also higher than corresponding quarter of previous year.
2. The Company continues to manufacture and supply essential food and beverage items in the current COVID environment. The demand for the food and beverage products for in home consumption was buoyant, with favourable impact on revenue from the operations. Lock down conditions can cause supply constraints and result in commodity cost volatility. Based on the trends observed, there is some tapering off of demand and significant hardening of commodity costs. Impact on future operations would to a large extent depend on how the pandemic develops.
3. Exceptional item for the current quarter represent business integration costs of foods business.
4. During the quarter, the Company has acquired entire 50% stake of PepsiCo India Holdings Pvt. Ltd in NourishCo Beverages Limited (NCBL) consequently converting the Joint- Venture into a wholly-owned subsidiary of the Company with effect from May 18, 2020.
5. In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated financial results, and therefore, no separate disclosure on segment information is given in these Standalone financial results.
6. Figures of the quarter ended June 30, 2019 as reported has been restated consequent to the demerger and transfer of Consumer Product Business (foods business) of Tata Chemicals Limited with the Company as the appointed date of the Scheme was April 1, 2019.
7. Figures of the quarter ended March 31, 2020 is the balancing figures between audited figures in respect of the full financial year and year to date figures up to the third quarter of the relevant financial year.
8. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
9. The aforementioned results were reviewed by the Audit Committee of the Board on August 3, 2020 and subsequently taken on record by the Board of Directors at its meeting held on August 4, 2020. The Statutory Auditors of the Company have conducted limited review on these results.
Mumbai: August 4, 2020
Sunil D'Souza
Managing Director and CEO
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