OCTOBER 29: Tata Tea has posted a sharp 23.4 per cent drop in net profit for the first half despite a marginal jump in turnover. Its margins has been squeezed primarily by lower prices in the second quarter and higher investments on new brands, the company said.Net profit slipped to Rs 72.3 crore from Rs 94.42 crore in the same period last year, while income from operations increased to Rs 444.84 crore from Rs 438.6 crore in the period. The company's sales of polypack and packet teas increased 15 per cent during the first half, it said.In the second quarter, the company's turnover rose by 7.4 per cent to Rs 231.28 crore, while net profit declined 16.46 per cent to Rs 46.21 crore.Other income has been higher in the first half at Rs 13.32 crore against Rs 11.99 crore in the corresponding period last year. Interest charges were lower at Rs 8.31 crore as compared with Rs 9.92 crore in the first half of last year.Provision for taxation has been lower at Rs 31 crore against Rs 42.5 crore in the firsthalf of 1998-99.Tata Tea has said that the last fiscal's first half results have benefited by exceptionally high prices and higher production in its plantations. In comparison, production and price trends continued to be lower in the second quarter of the current fiscal due to adverse weather conditions and substantial decline in exports.
