TATA PRESS-Higher Profit Margin

TATA TEA Boom Continues TATA TEA has established a pilot plant at Munnar for the production of button mushrooms and has commenced test marketing the produce. It is intended to set up a major export-oriented project in the future. Other projects in the pipeline include a spice processing centre at Cochin and a medicinal and aromatic plant processing centre at Munaar. The company also proposes to develop lands/estates which may form part of its business activities. The company has achieved sales of Rs 209.11 crore during the 15-month period ended March 1989 as compared to Rs 136.18 crore in the previous 12 months and earned a gross profit of Rs 28.62 crore against Rs 29.55 crore. Net profit is Rs 17.07 crore (Rs 11.05 crore). The directors have recommended a final dividend of 35 per cent on the capital enlarged by a two-for-five bonus issue which together with the interim of 15 per cent makes a total of 50 per cent as against 45 per cent paid for 1987. The quantum of dividend amounts to Rs 7.81 crore, an increase of about 55 per cent over the sum of Rs 5.11 crore paid for the previous year. The extension of the accounting year has involved the inclusion of the operations of two January-March quarters during which most tea companies, particularly those in north India, have hardly any production of black tea and expenses generally exceed income.