Tata Global says lower costs helped Q2 profit growth

Tata Global Beverages reported a 4.4% increase in revenue for the September quarter, while net profit jumped to 144 cr from Rs 127 cr in the year-ago quarter.

Revenue declined marginally on a sequential basis, while net profit was higher by Rs 20 cr.

The company said revenue comparisons were hit by foreign currency movements and on a constant currency basis, the growth was about 6%.

Profit before exceptional items at Rs 208 Crores was higher by 23% as compared to the corresponding quarter of the previous year.

The company attributed the higher profitability to “improved operating performance, good cost management and lower finance costs.”

The group sold of two of the company’s overseas subsidiaries (Sunty LLC and Tea Trade LLC), as on November 3, 2017.

The company has also started exploring the cafe business with a recent pilot launch of its first tea café Tata Cha, in Bangalore.

“Tetley in UK saw market share gains, primarily driven by its focus on the non-black tea category,” it said.

“The brand is celebrating its 180 anniversary this year with a series of initiatives to further drive its heritage, quality and expertise credentials.”

It said it launched two new variants of loose tea- ‘Tetley Strong’ and ‘Tetley Gold’ in the Middle East.