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Position in Universe 61st / 3003

Tata Global Bev.Ltd - 3rd Quarter Results

Fri 3rd February, 2017 1:18pm
RNS Number : 0146W
Tata Global Beverages Limited
03 February 2017

Tata Global Beverages Limited

Registered Office: 1 Bishop Lefroy Road, Kolkata - 700020

CIN - L15491WB1962PLC031425, Email : investor.relations@tgbl.com, Website : www.tataglobalbeverages.com

Unaudited Financial Results for the quarter and nine months ended December 31, 2016

Rs. In Crores

Particulars

Unaudited Three Months Ended

Unaudited Year to Date Ended


Dec 31

2016

Sept 30

2016

Dec 31

2015

Dec 31

2016

Dec 31 2015

Income from Operations






Net Sales / Income from Operations

769.92

736.85

744.38

2312.56

2252.19

Other Operating Income

16.51

22.27

16.72

54.76

57.85

Total Income from Operations

786.43

759.12

761.10

2367.32

2310.04

a) Cost of materials consumed

479.96

458.51

498.26

1403.20

1444.07

b) Purchase of stock-in-trade

8.06

5.25

6.02

14.62

7.84

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

(10.48)

3.31

(21.10)

59.19

28.40

d) Employees benefits expense

48.83

47.48

45.37

142.41

128.93

e) Depreciation & Amortization expense

5.99

5.83

5.63

17.38

16.79

f) Advertisement & Sales Charges

62.30

56.33

52.14

154.94

160.63

g) Other expenses

100.82

103.42

85.05

295.11

258.18

Total Expenses

695.48

680.13

671.40

2086.85

2044.84

Profit from Operations before Other Income, Finance Cost & Exceptional Items

90.95

78.99

89.70

280.47

265.20

Other Income

18.24

50.99

3.48

81.97

85.15

Profit from ordinary activities before Finance costs & Exceptional Items

109.19

129.98

93.18

362.44

350.35

Finance Cost

(12.43)

(14.79)

(20.14)

(39.40)

(44.23)

Profit from ordinary activities after Finance cost but before Exceptional Items

96.76

115.19

73.04

323.04

306.12

Exceptional items (Net)

-

-

(0.97)

-

(3.97)

Profit from ordinary activities before Tax

96.76

115.19

72.07

323.04

302.15

Tax Expense

(24.30)

(28.87)

(22.70)

(91.00)

(81.70)

Net Profit after Tax (A)

72.46

86.32

49.37

232.04

220.45

Paid up Equity Share Capital
(face value of Re. 1 each)

63.11

63.11

63.11

63.11

63.11

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

1.15

1.37

0.78

3.68

3.49

Other Comprehensive Income (B)

(27.57)

95.75

52.68

132.19

(98.48)

Total Comprehensive Income (A + B)

44.89

182.07

102.05

364.23

121.97

Notes:

1. TheCompanyhasadopted,IndianAccountingStandards(IndAS)from1stApril 2016andaccordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 - Interim Financial Reporting prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and the other accounting principles generally accepted in India. Financial results of all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS34.

2. The Board of Directors of the Company at its meeting held on 16th January 2017 have accorded an in principle approval for divesting its stake in its Joint Venture, Zhejiang Tata Tea Extractions Company Limited subject to necessary approvals. The transaction will also be subject to completion of negotiations, definitive agreements and satisfaction of conditionsprecedent.

3. Forthequarter,IncomefromoperationsatRs.786croresincreasedovercorrespondingquarterof previousyearreflectingimprovedperformanceinthebrandedteaoperations.ProfitaftertaxatRs. 72 crores is higher than corresponding quarter of previous year despite higher spends on advertisement and sales charges mainly on account of higher dividend income and lower finance costs.

4. (a).Reconciliationbetweenstandalonefinancialresults,aspreviouslyreportedreferredtoasprevious GAAPandIndASareasunder:


Adjustments under Ind AS


For the Quarter In Rs. Crores

Previous GAAP

Revenue

(Note i)

Amortised cost adjustment on Longterm borrowings (Note ii)

Others

(Note iii)

Ind AS

December

31 ,2015

December

31,2015

Total Income from Operations

785.50

(24.40)

-

-

761.10

Profit from Operations

84.17

-

-

5.53

89.70

Net Profit after Tax

50.92

-

(4.27)

2.72

49.37


Adjustments under Ind AS

For the Year to date In Rs. Crores

Previous GAAP

Revenue

(Note i)

Amortised cost adjustment on Long term borrowings (Note ii)

Others

(Note iii)

Ind AS

December

31,2015

December

31,2015

Total Income from Operations

2383.74

(73.70)

-

-

2310.04

Profit from Operations

254.33

-

-

10.87

265.20

Net Profit after Tax

227.07

-

(12.16)

5.54

220.45

Note i - Expenditure required to be offset from sales on account of measurement criteria for Revenue.

Note ii - Recognition of finance cost under effective interest rate method for redemption premiumondebentues,whichwasadjustedtoreservesunderpreviousGAAP.

Note iii - Others mainly include agriculture al produce required to be fair valued, impact of actuarial gain/ losses and impact of fair value measurement of financial instruments.

(b) Other comprehensive income comprises of income / (expenditure):


Three months ended

Year to date ended

In Rs Crores

December 31, 2016

September 30, 2016

December 31, 2015

December 31, 2016

December 31, 2015

Fair value changes in the carrying value of investments which under previous GAAP was accounted at cost

(26.14)

105.69

56.87

144.98

(89.83)

Amount accounted under hedging

reserves which under previous GAAP were accounted directlyintoreserves

2.85

(0.92)

(1.56)

1.40

(4.26)

Actuarialgain/(loss)onemployeebenefits which, under the previous GAAP were accounted in the Statement of Profit and Loss.

(4. 28)

(9.0 2)

(2.63)

(14.19)

(4.39)

Total Other Comprehensive Income

(27.57)

95.75

52.68

132.19

(98 .48 )

5. With effect from 1st April 2016, the Company has organized its business into Branded Segment and NonBrandedSegment.BrandedSegmentisfurther categorized asBranded Tea,BrandedCoffeeand the residual as Branded Others. As per the threshold limits prescribed under Indian Accounting Standard (Ind AS-108 ) on " Segment Reporting" prescribed under section 133 of the Companies Act, 2013 read with relevant rules there under, the Company's reportable activity falls within a single businesssegmentandhencethesegmentdisclosurerequirementsarenotapplicable.

6. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to currentperiod'sclassifications.

7.TheaforementionedresultswerereviewedbytheAuditCommitteeoftheBoardonJanuary31,2017 andsubsequentlytakenonrecordbytheBoardofDirectorsatitsMeeting heldonFebruary1,2017.Thestatutoryauditorsofthecompanyhaveconductedlimitedreviewon
theseresults.

Harish Bhat

Mumbai, February 1, 2017 (Chairman)

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 and nine months ended December 31, 2016

Rs. In Crores

Particulars

Unaudited Three Months Ended

Unaudited Year to Date Ended


Dec 31

2016

Sept 30

2016

Dec 31

2015

Dec 31

2016

Dec 31 2015

Income from Operations






Net Sales /Income from Operations

1717.96

1604.38

1673.03

5035.55

4961.58

Other Operating Income

25.90

21.59

26.58

69.74

76.61

Total Income from Operations

1743.86

1625.97

1699.61

5105.29

5038.19

a) Cost of materials consumed

848.47

783.86

831.00

2414.30

2523.33

b) Purchase of stock-in-trade

114.26

57.12

71.09

239.26

214.27

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

(28.18)

2.97

12.45

76.76

38.58

d) Employees benefits expense

204.33

208.71

215.55

621.74

606.07

e) Depreciation & Amortization expense

31.08

27.51

32.32

94.84

92.18

f) Advertisement & Sales Charges

181.07

137.59

148.76

423.71

443.52

g) Other expenses

239.92

245.98

249.84

717.30

718.14

Total Expenses

1590.95

1463.74

1561.01

4587.91

4636.09

Profit from Operations before Other Income, Finance Cost & Exceptional Items

152.91

162.23

138.60

517.38

402.10

Other Income

14.30

30.94

9.34

66.28

55.66

Profit from ordinary activities before Finance cost & Exceptional Items

167.21

193.17

147.94

583.66

457.76

Finance Cost

(21.57)

(23.15)

(30.34)

(66.76)

(72.47)

Profit from ordinary activities after Finance cost but before Exceptional Items

145.64

170.02

117.60

516.90

385.29

Exceptional items (Net)

49.54

-

(10.57)

47.80

(18.12)

Profit from ordinary activities before Tax

195.18

170.02

107.03

564.70

367.17

Tax Expense

(50.32)

(61.88)

(46.57)

(185.41)

(147.79)

Net Profit after Tax

144.86

108.14

60.46

379.29

219.38

Share of Profit / (Loss) from JV's and Associates

(0.32)

31.48

5.48

24.39

12.43

GROUP CONSOLIDATED NET PROFIT (A)

144.54

139.62

65.94

403.68

231.81

Attributable to :






Owners of the Parent

127.63

126.75

57.78

358.03

210.55

Non Controlling Interest

16.91

12.87

8.16

21.26

Paid up Equity Share Capital
(face value of Re. 1 each)

63.11

63.11

63.11

63.11

63.11

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

2.02

2.01

0.92

5.67

3.34

Other Comprehensive Income (B)

36.32

(172.20)

5.64

(284.77)

90.93

Total Comprehensive Income (A + B)

180.86

(32.58)

71.58

118.91

322.74

Attributable to :






Owners of the Parent

169.86

(11.92)

71.25

138.62

272.49

Non Controlling Interest

11.00

(20.66)

0.33

(19.71)

50.25



Notes:

1. The Company has adopted Indian Accounting Standards (Ind AS) from 1st April 2016 and accordingly these financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS 34 - Interim Financials Reporting prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and the other accounting principles generally accepted in India. Financial results of all the periods presented have been prepared in accordance with the recognition and measurement principles of Ind AS 34.

2. For the quarter, Income from operations at Rs 1744 crores increased by 3% as compared to corresponding quarter of the previous year. At previous year exchange rate the increase is 5%. Profit before exceptional items at Rs 146 crores is higher by 24% as compared to the corresponding quarter of the previous year despite higher advertising spends on base business and new launches, due to improved operating performance and lower finance costs. Group Consolidated net profit for the quarter at Rs 145 crores is higher by 119% as compared to the corresponding quarter of the previous year reflecting improved operating performance and impact of exceptional items.

3. Exceptional item for the current quarter represent a gain, based on fair valuation, of Rs 50 crores, determined as per Ind AS 103 - Business Combinations, arising out of the conversion of an overseas joint venture to a subsidiary pursuant to amendments in the operating agreement.Exceptional items for the corresponding quarter of the previous year represents cost relating to business restructuring of Rs 6 crores and expenditure on account of retrospective amendment of legislation relating to employee benefits of Rs 5 crores.

4. (a) Reconciliation between consolidated financial results for the quarter and year to date ended December'2015 , as previously reported referred to as previous GAAP and Ind AS are as under:

Adjustments under Ind AS

For the Quarter

In Rs Crores

Previous GAAP

Revenue

(Note i)

Equity Accounting

of JV results

(Note ii)

Agricultural Produce

(Note iii)

Amortised cost adjustment

on Long term Borrowings

(Note iv)

Others

(Note v)

Ind AS

December 31, 2015

December 31, 2015

Total Income from Operations

2081.47

(224.52)

(157.34)

-

-

-

1699.61

Profit from Operations

134.12

-

0.10

(3.96)

-

8.34

138.60

Group Consolidated Net Profit before Minority interest

68.49

-

(0.44)

(2.92)

(4.27)

5.08

65.94

Adjustments under Ind AS

For the Year to Date

In Rs Crores

Previous GAAP

Revenue

(Note i)

Equity Accounting

of JV results

(Note ii)

Agricultural Produce

(Note iii)

Amortised cost adjustment

on Long term Borrowings

(Note iv)

Others

(Note v)

Ind AS

December 31, 2015

December 31, 2015

Total Income from Operations

6144.94

(633.75)

(473.00)

-

-

-

5038.19

Profit from Operations

399.58

-

8.60

(26.57)

-

20.49

402.10

Group Consolidated Net Profit before Minority interest

248.59

-

(1.70)

(18.85)

(12.16)

15.93

231.81

Note i - Expenditure required to be offset from sales on account of measurement criteria for Revenue.

Note ii - Joint ventures are required to equity accounted instead of proportionate consolidation.

Note iii - Agricultural produce are required to be fair valued.

Note iv - Recognition of finance cost under effective interest rate method for redemption premium on debentures, which was adjusted to reserves under previous GAAP.

Note v - Others mainly include expenditure capitalised, depreciation & amortisation adjustments and impact on the results of Associates mainly on account of fair valuation of agricultural produce.

(b) Other comprehensive income comprises of income / (expenditure):

In Rs Crores

Three months ended

Year to date ended

December 31, 2016

September 30, 2016

December 31, 2015

December 31, 2016

December 31, 2015

(i) amounts accounted in the foreign currency translation reserve account, hedging reserves and actuarial gains/losses on employee benefits of overseas entities, which under previous GAAP, were accounted directly in the reserves

70.23

(267.32)

(48.44)

(410.85)

189.91

(ii) actuarial gain/(loss) on employee benefits of Indian entities, which under the previous GAAP, were accounted in the Statement of Profit and Loss

(7.29)

(11.28)

(3.13)

(20.83)

(8.51)

(iii) fair value changes in the carrying value of investments, which under the previous GAAP were accounted at cost.

(26.62)

106.40

57.21

146.91

(90.47)

Total Other Comprehensive Income

36.32

(172.20)

5.64

(284.77)

90.93

Cyrus P Mistry

5. The major part of the Holding Company's business arises from operations outside India and through its subsidiaries. In view of this the Company has opted to publish only consolidated results for the year as permitted under SEBI guidelines. The Total Income from Operations, Profit before tax and Profit after tax of the Holding Company's standalone financial results are given below :

In Rs Crores

Three months ended

Year ended

December 31, 2016

September 30, 2016

December 31, 2015

December 31, 2016

December 31, 2015

Total Income from Operations

786.43

759.12

761.10

2367.32

2310.04

Profit before Tax

96.76

115.19

72.07

323.04

302.15

Profit after Tax

72.46

86.32

49.37

232.04

220.45

Total Comprehensive Income

44.89

182.07

102.05

364.23

121.97

Earnings per share - Rs (not annualised for the quarter end)

1.15

1.37

0.78

3.68

3.49

6. With effect from October 1, 2016, the Group has, pursuant to amendments in a joint venture operating agreement, accounted Empirical Group LLC, in which the Group has a holding of 56%, as a subsidiary. Consequent to the above, the Total Income from Operations and Profit from Operations is higher by Rs 64 crores and Rs 7 crores respectively for the quarter and year to date ending December'2016, with related reduction in Share of Profits from Joint Ventures.

7. The Board of Directors of the Holding Company at its meeting held on January,16 2017 have accorded an in principle approval for divesting its stake in its Joint Venture, Zhejiang Tata Tea Extractions Company Limited subject to necessary approvals. The transaction will also be subject to completion of negotiations, definitive agreements and satisfaction of conditions precedent.

8. The Board of Directors of Tata Coffee Limited, Indian subsidiary of the Holding Company, in its meeting dated December 19, 2016 has approved the setting up of a state of the art greenfield freeze dried instant coffee facility in Vietnam of 5000MT capacity per annum. This would be done through a subsidiary of the company to be incorporated. The project is subject to the completion of all legal and other formalities. Estimated project cost is USD 50 Million (Approximately Rs. 350 crores).

9. The aforementioned results were reviewed by the Audit Committee of the Board on January 31, 2017 and subsequently taken on record by the Board of Directors at its Meeting held on February 01, 2017. The Statutory Auditors of the company have conducted limited review of these results.

10. Previous period's figures have been regrouped / rearranged, to the extent necessary, to conform to current period's classifications.

11. The Consolidated and Standalone result for the quarter ended December 31, 2016 are available on the Bombay Stock Exchange website (URL: www.bseindia.com ), the National Stock Exchange website (URL: www.nseindia.com) and on the Company's website (URL: www.tataglobalbeverages.com ).

Harish Bhat

Mumbai: February 01, 2017 (Chairman)



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 and nine months ended December 31, 2016

Rs. In Crores

Particulars

Unaudited Three Months Ended

Unaudited Year to Date Ended


Dec 31

2016

Sept 30

2016

Dec 31

2015

Dec 31

2016

Dec 31 2015

Segment Revenue






Branded Business






(a) Tea

1238.73

1166.37

1209.58

3618.21

3604.19

(b) Coffee

289.82

260.75

293.61

847.50

827.90

(c) Others

9.05

7.61

7.53

24.80

21.16

Total Branded Business

1537.60

1434.73

1510.72

4490.51

4453.25

Non Branded Business

225.54

208.40

206.08

665.63

616.41

Total Segment Revenue

1763.14

1643.13

1716.80

5156.14

5069.66

Less: Inter segment Sales

(19.28)

(17.16)

(17.19)

(50.85)

(31.47)

Income from Operations

1743.86

1625.97

1699.61

5105.29

5038.19

Segment Results






Branded Business






(a) Tea

143.55

157.14

144.13

464.76

441.51

(b) Coffee

30.85

43.89

38.65

130.38

92.19

(c) Others

(6.23)

(4.80)

(5.19)

(14.85)

(17.17)

Total Branded Business

168.17

196.23

177.59

580.29

516.53

Non Branded Business

28.66

23.20

19.32

90.88

48.10

Total Segment Results

196.83

219.43

196.91

671.17

564.63

Add/Less






i) Finance Cost

(21.57)

(23.15)

(30.34)

(66.76)

(72.47)

ii) Other Un-allocable items, Other Income and Exceptional Items

19.92

(26.26)

(59.54)

(39.71)

(124.99)

Profit Before Tax

195.18

170.02

107.03

564.70

367.17

Segment Assets






Branded Business






(a) Tea

4652.28

4137.54

4971.00

4652.28

4971.00

(b) Coffee

1876.60

1853.53

1936.94

1876.60

1936.94

(c) Others

44.03

30.33

45.90

44.03

45.90

Total Branded Business

6572.91

6021.40

6953.84

6572.91

6953.84

Non Branded Business

913.43

865.92

903.29

913.43

903.29

Total Segment Assets

7486.34

6887.32

7857.13

7486.34

7857.13

Unallocable Corporate Assets

2822.86

3153.80

3073.79

2822.86

3073.79

Total Assets

10309.20

10041.12

10930.92

10309.20

10930.92

Segment Liabilities






Branded Business






(a) Tea

832.61

829.33

830.06

832.61

830.06

(b) Coffee

209.16

160.50

173.46

209.16

173.46

(c) Others

24.20

13.90

8.03

24.20

8.03

Total Branded Business

1065.97

1003.73

1011.55

1065.97

1011.55

Non Branded Business

116.14

118.16

102.50

116.14

102.50

Total Segment Liabilities

1182.11

1121.89

1114.05

1182.11

1114.05

Unallocable Corporate Liabilities

1953.80

2030.05

2264.17

1953.80

2264.17

Total Liabilities

3135.91

3151.94

3378.22

3135.91

3378.22

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. This complies with Ind AS - 108 - Segment reporting principles, and is made effective from 1st April, 2015.

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, other income and exceptional items.

Harish Bhat

Mumbai: February 01, 2017 (Chairman)


This information is provided by RNS
The company news service from the London Stock Exchange
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