Tata Global Beverages Ltd (TGBL) on Tuesday reported a 34.81 per cent decline in its consolidated net profit at Rs 121.32 crore for the third quarter ended December 31, 2018 on account of deferred tax credit. It had posted a net profit of Rs 186.11 crore in October-December period a year ago, TGBL said in a BSE filing.
However, TGBL’s total income was up 10.52 per cent at Rs 1,935.17 crore during the quarter under review as against Rs 1,750.94 crore in the same quarter of the previous fiscal.
“The group net profit for the quarter is lower mainly on account of deferred tax credit of Rs 53 crore recognised in corresponding quarter of the previous year arising on account of changes in US tax legislation reducing the tax rates, and lower share of profits from Associates and Joint Ventures,” said TGBL.
TGBL’s total expenses was at Rs 1,758.93 crore as against Rs 1,532.86 crore, up 14.74 per cent. “The Company has clocked steady revenue growth in the last quarter. Profits have been impacted due to higher commodity costs, increased brand investment and one-off items,” TGBL Managing Director and CEO Ajoy Misra said.
Revenue from the tea segment of the Tata group firm was up 7.56 per cent to Rs 1,389.11 crore as against Rs 1,291.47 crore in the corresponding period of 2017-18. TGBL’s earning from coffee was up 28.83 per cent to Rs 326.25 crore as against Rs 253.23 crore. It further informed that its JV -Tata Starbucks has clocked a growth of 30 per cent in revenues and now operates 136 stores across 8 cities in India. Shares of Tata Global Beverages Ltd were trading at Rs 185 on BSE, down 7.64 per cent from previous close.