Sunday, June 27, 2010

TATA TEA = FY10 MIXED BAG = CONSOLIDATED VS STAND ALONE = FUTURE HIGHLY PROMISING



Tata Tea Limited
NSE Symbol      TATATEA
Results review
FY10 vs FY09

TATA Tea has presented a mixed picture in its consolidated operations vs its Stand alone results – as can be seen from the results numbers below.

Net Sales has increased by 19.3% to Rs.5782.95  Cr (Rs.4847.87 Cr in FY 09) on consolidated basis while the same has increased by 24.7% on stand alone basis to Rs.1697.92 Cr (Rs.1361.53 cr in FY09).
Raw material consumption has increased by about 26.5 % in both cases.  
Total Expenditure has increased by 20.4% on consolidated basis to Rs.5202.20Cr (vs Rs.4322.28 cr in Fy09) while, on stand alone basis, the increase is 24.2% to Rs.1536.48Cr (vs Rs.1237.39 in FY09).
Net Profit after tax has come down by 52.7% to Rs.393.31 cr in Fy10 from Rs.831.90 Cr in Fy09 on consolidated basis. But, the same has improved by146.1% to rs.391.47 Cr in FY10 (vs Rs.159.06 Cr in FY09). Consolidated NPT    is also down by 44.3% to Rs.390.30 Cr (vs Rs.700.55 Cr in FY09).
Dividend (%) has been increased to 200% this year (175% last year).       
Basic EPS is approximately the same at Rs.63.11 on consolidated basis (Rs.113.28 last Yr) and  Rs.63.3 on stand alone basis (vs Rs.25.72 in FY09).
The company intends to subdivide its Rs.10 shares into Shares of Rs.1 each.
It also wants to change its name to 'Tata Global Beverages Limited'      
The Board of Tata Tea Limited approved a non binding Memorandum of Understanding with PepsiCo Inc.,on 09.04.2010 with the intention of exploring the formation of a Joint Venture in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness. As per news – the first product will be launched in 2010 in India.
TAA TEA is also into premium mineral water market.
Tata TEA wants to enhance its Non-TEA business to around 50% - as per reports and strengthen its sales in Pakistan, Bangladesh and rest of south asia.
Current Market price is around 1180. So, PE ratio works out to 18.64.
Considering its various moves, the price could appreciate further with every quarterly result – reflecting its new brand introduction and expanding markets in south  asia.

TATA TEA(Rs in lakhs)
FY10 consol
FY09 consol
Dif%
FY10 Non Cons
FY09 Non con
Dif%
Net Sales
578295
484787
19.3
169792
136153
24.7
Other Oprtg Income
3797
-
-
1772
SIT & WIP
-3704
-7169
-48.3
-1469
-1867
-21.3
Raw Materials
205906
162810
26.5
99383
78599
26.4
Traded goods
27597
19637
40.5
157
448
-65
Employees Cost
62832
55416
13.4
9503
9175
3.6
Depreciation
10292
9869
4.3
1232
1065
15.7
Other Expenditure
217297
191665
13.4
44842
36319
23.5
Total Expenditure
520220
432228
20.4
153648
123739
24.2
Profit -Operations
61872



Other Income
3406



P B I&EI
65278



Interest
2793
-
-
4860
Profit aft. INst before EI
62485



Exceptional items
-1613
-
-
959
Profit before tax
64098
125631
-49
49543
22906
116.3
Tax Expense
24767
42441
-41.6
10396
7000
48.5
Net Profit after tax
39331
83190
-52.7
39147
15906
146.1
Extraordinary Items
-
-
-
-
Net Profit
39331
83190
-52.7
39147
15906
146.1
Minority Interest
3605
15628
-76.9


Shares of Associates
-3304
-2493
32.5


Other Related Items
-
-


Consolidated NPT
39030
70055
-44.3


Dividend (%)
-
-
200
175
14.3
Face Value (in Rs.)
10
10
0
10
10
0
Paid-up Equity
6184
6184
0
6184
6184
0
Reserves
361439
351936
2.7
199414
171561
16.2
Basic EPS before EI
63.11
113.28
-44.3
63.3
25.72
146.1
Diluted EPS before EI
63.11
113.28
-44.3
63.3
25.72
146.1
Basic EPS after EI
63.11
113.28
-44.3
63.3
25.72
146.1
Diluted EPS after EI
63.11
113.28
-44.3
63.3
25.72
146.1

ANNOUNCEMENTS
TO THE EXCHANGE

11-06-2010        Tata Tea Limited has informed the Exchange that "The Record Date with regard to the sub-division of the equity shares of the Company has been fixed as July 02 2010".       -
10-06-2010        Tata Tea Limited has submitted to the Exchange a copy of the Report of the Scrutinizer appointed in connection with (1) Special Resolution under Section 21 of the Companies Act, 1956 for approving the change in the name of the company from Tata Tea Limited to 'Tata Global Beverages Limited' subject to approval of the shareholders and the approval of the Central Government. (2) Ordinary Resolution under Section 94 of the Companies Act, 1956 for approving the sub-division (split) of one Equity Share of the Company of Rs. 10 each into 10 Equity Shares of Re 1 each. (3) Ordinary Resolution under Section 16 of the Companies Act, 1956 for approving the amendment of the Capital Clause of the Memorandum of Association consequent to sub-division of Equity Shares and (4) Special Resolution under Section 31 of the Companies Act, 1956 for approving the amendment of the Capital Clause of the Articles of Association consequent to sub-division of Equity Shares as per details given in the Notice and Explanatory Statement.
25-05-2010        Tata Tea Limited has informed the Exchange that the Board of Directors at its Meeting held on May 25, 2010 have recommended a dividend of Rs. 20/- per equity share of Rs. 10 each, fully paid, in respect of the financial year 2009-2010.         -
25-05-2010        Tata Tea Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 578295 lacs for year ending on 31-MAR-2010 against Rs. 484787 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 39030 lacs for the year ending on 31-MAR-2010 against Rs. 70055 lacs for the year ending on 31-MAR-2009.        -
25-05-2010        Tata Tea Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 169792 lacs for year ending on 31-MAR-2010 against Rs. 136153 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 39147 lacs for the year ending on 31-MAR-2010 against Rs. 15906 lacs for the year ending on 31-MAR-2009.        -
11-05-2010        Tata Tea Limited has informed the Exchange that "Copies of the Notice together with the Explanatory Statement which has been sent to the shareholders of the Company for obtaining their approval to the resolution through Postal Ballot for the following: (1) Change in the name of the Company from Tata Tea Ltd to "Tata Global Beverages Limited" as specified in the notice dated May 3, 2010 read with the explanatory statement attached thereto (special); (2) Sub-division of Equity Shares from the face value of Rs 10 per share to Re 1 per share as specified in the notice dated May 3, 2010 read with the explanatory statement attached thereto (ordinary); (3) Consequent to sub-division of Equity Shares, alteration of Clause V of the Memorandum of Association as specified in the notice dated May 3, 2010 read with the explanatory statement attached thereto (ordinary). (4) Consequent to sub-division of Equity Shares, alteration of Article 3A of the Articles of Association as specified in the notice dated May 3, 2010 read with the explanatory statement attached thereto (special)".      -
06-05-2010        Tata Tea Limited has informed the Exchange that "The Board of Directors of Tata Tea Limited has approved a change in the name of the Company from Tata Tea Limited to Tata Global Beverages Limited, subject to the approval of the Shareholders and the approval of the Central Government. The approval of the shareholders is proposed to be sought by way of postal ballot in accordance with the provisions of Section 192A of the Companies Act, 1956." -
30-04-2010        Tata Tea Limited has informed the Exchange that the Board of Directors of the Company at its Meeting held on April 30, 2010 has, subject to requisite approvals being obtained by the Company, approved the sub-division (stock-split) of each of the Ordinary (Equity) Shares of the face value of Rs. 10 each in the Equity Share Capital of the Company fully paid-up into 10 Ordinary (Equity) Shares of the face value of Re. 1 each fully paid-up and consequential amendments to the Capital Clauses in the Memorandum and Articles of Association of the Company. The Company proposes to seek consent of the Shareholders for the aforesaid by a Postal Ballot in accordance with Section 192A of the Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001.
09-04-2010        Tata Tea Ltd has informed the Exchange, vide its letter dated April 09, 2010, that "The Board of Tata Tea Limited approved a non binding Memorandum of Understanding with PepsiCo Inc., today with the intention of exploring the formation of a Joint Venture in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness. Definitive agreements for the Joint Venture are intended to be finalized over the next few months. The proposed Joint Venture is not intended to conflict with any existing arrangements of the parties. The transaction will be subject to corporate and statutory approvals as may be required".


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