Tata Global cuppa goes tepid

Tata Global is currently the top loser on the BSE. It is at Rs.109, down almost 8% and a tad way from its 52-week low of Rs.108.85.

The market is very disappointed with the performance of the company’s Q3FY16 numbers. It reported a 30% (YoY) drop in its consolidated net profit at Rs.59 crore. The rise was net sales was just 3% at Rs.2051 crore.

The company has explained that this decline during the quarter was because of currency translations as quite a substantial part of its sale in other currencies such as Russian Rubles, Canadian dollars and Australian dollars depreciated.

Secondly, increase in promotional activities, especially in the international markets also led to the decline. The company has stated it will continue with its promotions into Q4 also thus we can expect this to be a dent in current quarter too.