MUMBAI: Driven by a strong performance by its brand sales, Tata Tea Ltd. (TTL) has reported a record net profit of Rs. 186.93 crore for the year ended March 31, 2006, a 45 per cent jump over the previous year's Rs. 128.90 crore.

Income from operations was up nine per cent at Rs. 982.05 crore (Rs. 899.63 crore). The board of directors has recommended a dividend of 120 per cent (100 per cent).

The company's brand sales grew 12 per cent and the erstwhile Tata Tetley was amalgamated with the company. This partly offset a reduction in sales due to exit from 23 estates in South India. The profit before tax from operations of Rs. 147.40 crore was 31 per cent higher and exceptional items include profit on sale of undertaking in South India at Rs. 40.88 crore, which was partly offset by amortisation of employee separation scheme and commercial tax for a discontinued business.

For the fourth quarter ended March 2006, TTL reported a lower net profit of Rs. 19.32 crore (Rs. 25.83 crore) on an unchanged income from operations of Rs. 219.07 crore (Rs. 220.41 crore).

Under Indian GAAP, the Tetley Group's (the company's 98.58 per cent subsidiary) profit before tax was up 13 per cent at Rs. 196.91 crore and the profit after tax 83 per cent at Rs. 146.55 crore. According to Percy Siganporia, Managing Director, TTL, after having exited the south Indian market, will reconstruct the entire model to maximise land resources or human capital.

While briefing the media about Tata Tetley's international operations, Vijay Singh, Managing Director-Developing Markets, Tata Tetley, said, the company's operations in Poland recorded a double digit growth for the second successive year.

John Nicholas, Managing Director, Developed Markets, Tata Tetley, said that, in Canada, the company enjoyed a 46.3 per cent market share in black tea. In the U.K., TTL had a 26.2 per cent share and was the brand leader in decaffeinated tea with a 32 per cent share.

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