REG - Tata Global Bev.Ltd - 1st Quarter Results

Tata Consumer ProductsAnnouncement

06/08/2019 10:00

RNS Number : 0710I
Tata Global Beverages Limited
06 August 2019
 


 
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road  Kolkata-700020
 
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com
Website : www.tataglobalbeverages.com
 
Unaudited Consolidated Financial Results for the quarter ended June 30, 2019
Rs. in Crores



 
Particulars


Three months ended


Year ended




June 30,
2019


March 31,
2019


June 30,
2018


March 31,
2019




Unaudited


Refer Note 6


Unaudited


Audited




Revenue from Operations


1897.13


1775.46


1802.59


7251.50




Other Income


30.53


35.23


28.52


157.13




Total Income


1927.66


1810.69


1831.11


7408.63




Cost of Materials Consumed


832.48


813.05


777.36


3294.18




Purchase of stock in trade


164.13


189.63


214.69


727.87




Changes in inventories of finished goods, work in progress and stock in trade


60.66


(30.34)


(11.69)


(14.41)




Employee Benefits Expense


202.10


203.01


203.20


806.30




Finance Costs


18.24


15.48


12.57


52.47




Depreciation and Amortisation Expense


46.00


32.98


29.49


122.57




Advertisement and Sales charges


108.36


129.59


118.05


547.52




Other Expenses


264.60


296.25


252.21


1104.13




Total Expenses


1696.57


1649.65


1595.88


6640.63




Profit before Exceptional Items and Tax


231.09


161.04


235.23


768.00




Exceptional Items (Net)


           (8.06)


(8.39)


(18.18)


(33.29)




Profit before Tax


223.03


152.65


217.05


734.71




Tax Expense


(73.92)


(58.83)


(83.45)


(260.88)




Net Profit after Tax


149.11


93.82


133.60


473.83




Share of net profit/(loss) in Associates and Joint Ventures using equity method


(7.43)


(57.83)


(5.46)


(16.85)




Group Consolidated Net Profit (A)


141.68


35.99


128.14


456.98




Attributable to :




















Owners of the Parent


125.33


22.90


116.24


408.19




Non Controlling Interest


16.35


13.09


11.90


48.79




Other Comprehensive Income




















i) Items that will not be reclassified to profit or loss (Net of tax)




















Remeasurement of the defined benefit plans


(1.25)


43.80


25.88


73.37




Changes in fair valuation of equity instruments


4.04


(10.47)


3.06


(5.37)








2.79


33.33


28.94


68.00




ii) Items that will be reclassified to profit or loss (Net of tax)




















Exchange differences on translation of foreign operations


(90.61)


38.15


(0.13)


17.04




Gains/(loss) on Effective portion of cash flow hedges


17.25


(4.60)


2.20


(11.18)








(73.36)


33.55


2.07


5.86




Total Other Comprehensive Income, net of tax  (B)


(70.57)


66.88


31.01


73.86




Attributable to :




















Owners of the Parent


(57.80)


59.68


31.63


70.58




Non Controlling Interest


(12.77)


7.20


(0.62)


3.28




Total Comprehensive Income (A+B)


71.11


102.87


159.15


530.84




Attributable to :




















Owners of the Parent


67.53


82.58


147.87


478.77




Non Controlling Interest


3.58


20.29


11.28


52.07




Paid-up equity share capital (Face value of Re 1 each)


63.11


63.11


63.11


63.11




Reserves excluding Revaluation Reserve














7246.72




Earnings per share (Basic & Diluted) (not annualised for the quarter) - Rs


1.99


0.36


1.84


6.47



 
Notes:
 
1.   For the quarter Revenue from operations increased by 5% driven by improvements in both branded and non-branded business. Profit before taxes increased by 3%. While profits of international and non-branded businesses were higher, profits in India were lower due to higher commodity costs and increased spends behind brands.      
 
2.   a)                                                                                                                                           The Board of Directors of the Holding Company in its meeting held on May 15, 2019, as a part of business reorganisation, had approved the scheme of merger of consumer product business of Tata Chemicals Limited with the Company in terms of a scheme of arrangement under Section 230-232 and other applicable provisions of the Companies Act, 2013. The appointed date of the scheme is April 1, 2019. The Scheme would become effective after receipt of all requisite statutory and NCLT approvals, including shareholders' approval. The results of the said business will be included in the consolidated results, with effect from the appointed date, on receipt of all requisite approvals. The costs incurred during the quarter in relation to the proposed scheme of merger have been disclosed as exceptional items.
 
b)      The Holding Company had in April, 2019 entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries Limited. The Board of Directors in its meeting held on July 31, 2019 approved entering into binding agreements.
 
3.   Exceptional item for the current quarter represent costs relating to the proposed scheme of merger (Refer Note 2.a). Exceptional items for the corresponding quarter of the previous year represent redundancy costs relating to internal restructure.
 
4.   Share of profits/(loss) in Associates and Joint Ventures include the losses of an Associate operating in North India plantations, which are seasonal in nature.
 
5.   Effective April 1, 2019, the Group has adopted Ind AS 116 - Leases and applied the revised standard to all lease contracts thereby capitalising assets taken on operating lease existing on April 1, 2019, using the modified retrospective method, with the cumulative adjustment to retained earnings. Accordingly, comparatives for the year ended March 31, 2019 have not been restated. On transition, the cumulative effect of applying the standard resulted in Rs 63 Crores being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit for the period.
 
 
6.   Figures for the quarter ended March 31, 2019 are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year.
 
7.   Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
 
8.   The aforementioned results were reviewed by the Audit Committee of the Board on July 30, 2019 and subsequently taken on record by the Board of Directors at its Meeting held on July 31, 2019. The Statutory Auditors of the Company have conducted limited review on these results.
 
9.   The Consolidated and Standalone result for the quarter ended June 30, 2019 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.tataglobalbeverages.com).
 
 
In terms of our report attached



For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm's Registration No. 117366W/W-100018
 
 
 
 
 
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Mumbai: July 31, 2019 


 
 
 
 
 
 
 
 
   Ajoy Misra
Managing Director and CEO



 
 




 
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road  Kolkata-700020
 
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com
Website : www.tataglobalbeverages.com
 
Consolidated Segment wise Revenue, Results, Assets and Liabilities for the quarter ended June 30, 2019
Rs. in Crores



 
Particulars


Three months ended


Year ended




June 30,
2019


March 31,
2019


June 30,
2018


March 31,
2019




Unaudited


Refer Note d


Unaudited


Audited




Segment Revenue




















Branded Business




















 (a) Tea


1372.63


1250.95


1314.31


5202.59




 (b) Coffee


283.02


281.46


291.66


1202.84




 (c) Others


6.04


7.30


10.16


30.77




Total Branded Business


1661.69


1539.71


1616.13


6436.20




Non Branded Business


242.92


241.21


192.85


842.47




Total Segment Revenue


1904.61


1780.92


1808.98


7278.67




Less: Inter segment Sales


(7.48)


(5.46)


(6.39)


(27.17)




Revenue from Operations


1897.13


1775.46


1802.59


7251.50




Segment Results




















Branded Business




















 (a) Tea


197.63


151.19


210.02


694.38




 (b) Coffee


50.89


52.63


43.50


178.33




 (c) Others


(3.30)


(6.22)


(3.75)


(21.22)




Total Branded Business


245.22


197.60


249.77


851.49




Non Branded Business


20.55


7.86


17.70


41.58




Total Segment Results


265.77


205.46


267.47


893.07




Add/Less




















Finance Cost


(18.24)


(15.48)


(12.57)


(52.47)




Unallocable items


(24.50)


(37.33)


(37.85)


(105.89)




Profit Before Tax


223.03


152.65


217.05


734.71




Segment Assets




















Branded Business




















 (a) Tea


4606.71


4683.26


4339.96


4683.26




 (b) Coffee


1907.18


1846.10


1909.08


1846.10




 (c) Others


36.10


30.31


34.92


30.31




Total Branded Business


6549.99


6559.67


6283.96


6559.67




Non Branded Business


1541.49


1483.92


1316.07


1483.92




Total Segment Assets


8091.48


8043.59


7600.03


8043.59




Unallocable Corporate Assets


2968.15


2895.13


3142.56


2895.13




Total Assets


11059.63


10938.72


10742.59


10938.72




Segment Liabilities




















Branded Business




















 (a) Tea


913.28


722.98


783.01


722.98




 (b) Coffee


230.01


155.39


177.96


155.39




 (c) Others


12.57


7.87


4.78


7.87




Total Branded Business


1155.86


886.24


965.75


886.24




Non Branded Business


155.34


169.88


132.57


169.88




Total Segment Liabilities


1311.20


1056.12


1098.32


1056.12




Unallocable Corporate Liabilities


1595.83


1523.23


1455.44


1523.23




Total Liabilities


2907.03


2579.35


2553.76


2579.35



 
Notes:
a.  The group has organised business into Branded Segment and Non Branded Segment. Branded Segment is further sub-categorised as Branded Tea, Branded Coffee and the residual as Branded Others. 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 -
Branded Tea : Sale of branded tea and various value added forms
Branded Coffee : Sale of coffee in various value added forms
Branded Others : Sale of water products
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, unallocable other income and exceptional items.
d.  Figures for the quarter ended March 31, 2019 are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year.
 
 
 
 



 
 
 
Mumbai: July 31, 2019


 
                      Ajoy Misra
Managing Director and CEO



 




 
Tata Global Beverages Limited
Registered Office: 1 Bishop Lefroy Road  Kolkata-700020
 
CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com
Website : www.tataglobalbeverages.com
Standalone Financial Results for the quarter ended June 30, 2019
Rs. in Crores



 
Particulars


Three months ended


Year ended




June 30,
2019


March 31,
2019


June 30,
2018


March 31,
2019




Unaudited


Refer Note 5


Unaudited


Audited




Revenue from Operations


 968.82


784.05


908.60


3429.66




Other Income


  38.40


26.61


59.90


            182.51




Total Income


1007.22


810.66


968.50


3612.17




Cost of materials consumed


             532.14


500.86


   456.77


2055.97




Purchase of stock-in-trade


 6.50


8.25


   5.91


               23.65




Changes in inventories of finished goods, work-in-progress & stock-in-trade


 66.03


        (30.85)


     78.56


                 0.16




Employees benefits expense


                56.23


49.67


              55.05


              216.85




Finance costs


                  5.49


3.24


               3.69


                13.18




Depreciation and amortisation expense


                13.68


8.73


               7.32


                31.68




Advertisement and sales charges


                49.73


62.85


             41.35


              226.55




Other expenses


              111.30


134.21


            104.01


              468.21




Total Expenses


              841.10


736.96


752.66


3036.25




Profit before Exceptional Items and Tax


              166.12


73.70


215.84


              575.92




Exceptional Items (Net)


               (8.06)


                   -  


                     -  


                       -  




Profit before Tax


             158.06


             73.70


            215.84


              575.92




Tax Expense (Net of reversals)


              (51.96)


          (20.44)


           (68.13)


            (164.99)




Net Profit after Tax (A)


              106.10


             53.26


            147.71


              410.93




Other Comprehensive Income




















i) Items that will not be reclassified to profit or loss (net of tax)




















Remeasurement of defined benefit plans


               (6.89)


              7.00


               5.31


                  3.04




Changes in fair valuation of equity instruments


                  3.48


            (8.57)


               2.73


               (3.94)








               (3.41)


            (1.57)


               8.04


               (0.90)




ii) Items that will be reclassified to profit or loss (net of tax)




















Gains/(loss) on effective portion of cash flow hedges


                 0.08


               0.99


             (1.58)


                  2.75




Other Comprehensive Income (Net of tax) (B)


               (3.33)


            (0.58)


                6.46


                  1.85




Total Comprehensive Income (A+B)


              102.77


             52.68


            154.17


              412.78




Paid-up equity share capital (Face value of Re. 1 each)


                63.11


63.11


63.11


                63.11




Reserves excluding Revaluation Reserves














4358.71




Earnings per share (Basic & Diluted) (not annualised for the quarter) - Rs.


                 1.68


               0.84


                2.35


                  6.51



 
 
 
Notes:
 
1.    For the quarter, Revenue from operations at Rs 969 crores increased by 7% over corresponding quarter of the previous year due to improvements in branded sales. Profit before exceptional items at Rs 166 crores is lower as compared to corresponding quarter of previous year on account of higher commodity costs, higher spends on brands and lower dividend Income. Consequently Profit after tax is lower than corresponding quarter of previous year.
 
 
2.   a) The Board of Directors of the Company in its meeting held on May 15, 2019, as a part of business reorganisation, had approved the scheme of merger of consumer product business of Tata Chemicals Limited with the Company in terms of a scheme of arrangement under Section 230-232 and other applicable provisions of the Companies Act, 2013. The appointed date of the scheme is  April 1, 2019. The Scheme would become effective after receipt of all requisite statutory and NCLT approvals, including Shareholders approval. The results of the said business will be included in the standalone results, with effect from the appointed date, on receipt of all requisite approvals. The costs incurred during the quarter in relation to the proposed scheme of merger have been disclosed as exceptional items.
 
b) The Company had in April, 2019 entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries Limited. The Board of Directors in its meeting held on July 31, 2019 approved entering into binding agreements.
 
 
3.    The Company has organised its business into Branded Segment and Non Branded Segment. Branded Segment is further categorised as Branded Tea, Branded Coffee and the residual as Branded Others. As per the threshold limits prescribed under Indian Accounting Standard (Ind AS-108) on "Segment Reporting", the Company's reportable activity falls within a single business segment and hence, the segment disclosure requirements are not applicable.
 
 
4.    Effective April 1, 2019, the Company has adopted Ind AS 116 - Leases and applied the revised standard to all lease contracts thereby capitalising assets taken on operating lease existing on April 1, 2019, using the modified retrospective method, with the cumulative adjustments to retained earnings. Accordingly, comparatives for the year ended March 31, 2019 have not been restated. On transition, the cumulative effect of applying the standard resulted in Rs 15 cores being debited to retained earnings, net of taxes. The effect of this adoption is insignificant on the profit for the period.
 
 
5.    Figures for the quarter ended March 31, 2019 are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year.
 
 
6.    Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.
 
 




 
7.    The aforementioned results were reviewed by the Audit Committee of the Board on July 30, 2019 and subsequently taken on record by the Board of Directors at its meeting held on July 31, 2019. The Statutory Auditors of the Company have conducted limited review on these results.
 
 
In terms of our report attached



For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Firm's Registration No. 117366W/W-100018
 
 
 
 
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
Mumbai: July 31, 2019


             
 
 
 
                Ajoy Misra
Managing Director and CEO



 
 




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