Tata Global Beverages today reported a 12.89 per cent decline in consolidated net profit at Rs 97.23 crore for the first quarter ended June 30, 2014.
The company had posted a net profit of Rs 111.63 crore in the same period during the previous fiscal on the account of exceptional gain of Rs 21.63 crore.
Net sales in the quarter under review stood at Rs 1,883.95 crore as compared to Rs 1,796.15 crore, up 4.88 per cent in the year-ago period, Tata Global said in a filing to the BSE.
Tata Global Beverages Managing Director and CEO Ajoy Misra said: "We are committed to investing behind our brands, in a challenging market environment..In addition to organic growth, innovation, category expansion and strategic alliances will drive growth for the business."
The company said profitability was impacted due to lower crop available for sale in the plantation business and investment in new ventures.
During the quarter, revenue from tea segment grew by 10.14 per cent to Rs 1,451.1 crore while revenue from coffee and other produce declined 8.17 per cent to Rs 430.24 crore.
Shares of Tata Global Beverages closed at Rs 155.20 per scrip at the end of the day's trade, up 0.91 per cent from previous close on the BSE.