Tata Global Beverages hit a new high today at Rs.311.85 with over 5.5 times rise in volumes. It continues to trade in the green and remains strongly in the “buy” radar for many brokerage houses.
The market is enthused with its performance for Q2FY20 wherein it posted a profit before taxes (PBT), excluding one-off items included under other Income in the prior year, at Rs.192 crore, up 28% (YoY). Consolidated net profit jumped 45% to Rs 160 crore.
Revenue from operations increased by 4% at Rs.1834 crore, driven by improvements in both branded and non-branded business. At constant currency revenue growth is 5%. Improvement is driven by branded business, both India and International, coupled with stable performance in non-branded businesses.
During the Quarter, tax has been provided for, wherever applicable, at the reduced rate in accordance with the Taxation Laws (Amendment) Ordinance, 2019. The one time impact of the tax rate change on the Group Consolidated Net Profit of the current quarter is a charge of Rs 9 crore, arising mainly on account of reversal of opening net deferred tax assets.
Share of profits in Associates and JV’s for the current quarter includes a charge of Rs 14 crore due to reversal of opening deferred tax assets as a result of reduced tax rate whereas the quarter ended 30th September 2018 had a credit of Rs 37 crore on recognition of deferred tax assets in a Joint Venture.
For the Quarter, the India tea business clocked a growth of 8% both in volume and value terms.
For the Quarter, the total revenue from Tata Coffee and Vietnam unit recorded 18% growth, due to commencement of sales from Vietnam and higher sales in the Instant Coffee division.
Tata Starbucks clocked a 26% growth in revenue for the Quarter. It entered Gujarat in August, opening 5 stores, 3 in Ahmedabad and 2 in Surat. It now has 163 stores spread across 10 cities in India.