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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (3585)	1/27/1999 8:17:00 AM
From: Mohan Marette	Respond to of 12475

TATA Tea net down 10%-Coromandel Fertilizers net up 122% Tata Tea Q3 net down 10% to Rs 28 cr Our Bureau -------------------------------------------------------------------------------- Mumbai, Jan 25: TATA Tea Ltd has reported a slump in net profit in the third quarter ended December 1998, even as its net profit increased by over 50 per cent in the nine-month period ended December 1998. The company has posted a 10.13 per cent drop in net profit in the third quarter to Rs 28.10 crore as against Rs 31.27 crore in the corresponding period last year. Income from operations during the period too dropped marginally to Rs 204.16 crore from Rs 212.83 crore last year. Income from operations in the coffee export trading business was nil in the third quarter as against Rs 16.13 crore in the same period last year. Net profit margins at 13.76 per cent slumped from 14.69 per cent in the same period last year. Operating profit margins dropped to 23.77 per cent from 25.39 per cent last year. Operating profit decreased 10.2 per cent to Rs 48.53 crore from Rs 54.05 crore in the same period last year. Interest costs dropped to Rs 4.49 crore from Rs 5.35 crore last year. Depreciation was more or lessthe same at over Rs 3 crore while provision for taxation was lower at Rs 12.25 crore from Rs 14.65 crore last year. Net profit during the nine-month period ended December 1998 increased 50.18 per cent to Rs 122.52 crore from Rs 81.58 crore in the corresponding period last year. Income from oprations during the period dropped marginally to Rs 644.23 crore from Rs 659.63 crore last year. Net profit margins increased to 19 per cent from 12.36 per cent in the corresponding period last year. Operating profit jumped 46.69 per cent to Rs 192.22 crore from Rs 131.03 crore last year. Operating profit margins were higher at 29.83 per cent as against 19.86 per cent in the previous year. Depreciation was higher at Rs 12.53 crore as against Rs 10.71 crore last year. The provision for taxation increased to Rs 54.75 crore from Rs 29.75 crore last year. Insight Market disappointed: The Tata Tea results were below market expectations. For the nine months ended December 1998, the expectation was a netprofit of Rs 140-150 crore. The stock valuation reflected this, especially considering that domestic tea exports were higher by 20 per cent in the second half. Against these expectations the company reported a net income of just Rs 123 crore, leading to a sell-off at the counter. The stock hit the lower end of the circuit during trading on Monday, as the market understandably reacted negatively. Coromandel Fertilisers Q3 net up 122%: Coromandel Fertilisers Ltd has reported a 122 per cent rise in net profit to Rs 24.31 crore for the third quarter ended December 1998, against Rs 10.95 crore in the corresponding period last year. Net sales increased 23.44 per cent to Rs 137.13 crore during the period as compared to Rs 111.09 crore last year. Total expenditure increased to Rs 94.51 crore from Rs 90.58 crore in the same period last year. Net profit margins were higher at 17.72 per cent as against 9.8 per cent in the same period last year. Operating profit margins were also higher at 31.07 per cent ascompared to 18.46 per cent last year. Interest costs rose to Rs 4.75 crore from Rs 3.66 crore last year. Depreciation was higher at Rs 2.8 crore as against Rs 2.25 crore in the same period last year. Provision for taxation almost trebled to Rs 12.15 crore. According to a company press release, the results for the quarter ended December 1998 include the differential subsidy for April-September 1998 based on the revised rates of ad hoc subsidy announced for kharif 1998. As regards rabi 1998, the same are based on the ad hoc subsidy already announced by the government for the season. The company posted a 30.53 per cent rise in net profit during the nine-month period ended December 1998 to Rs 44.16 crore, compared to Rs 33.83 crore in the corresponding period last year. Net sales during the period were marginally higher at Rs 409.80 crore from Rs 407.25 crore in the same period last year. Net profit margins and operating profit margins were higher at 10.77 per cent and 19.73 per cent respectively asagainst 8.3 per cent and 15.22 per cent last year. Interest costs during the nine-month period were higher at Rs 14.70 crore as against Rs 12.46 crore last year. Depreciation and provision for taxation at Rs 7.84 crore and Rs 19.10 crore were higher as compared to Rs 6.75 crore and Rs 13.56 crore in the corresponding period last year.