Shares of Tata Global Beverages tumbled over 4 per cent in intra-day trade on Wednesday after beverages company reported lower-than-expected earnings for the fourth quarter ended March 31, 2019.
Reacting to Q4 earnings, shares of Tata group company declined as much 4.31 per cent to hit an intra-day low of Rs 200.50 on the Bombay Stock Exchange against the previous close level of Rs 209.55.
According to data available with BSE, there was a surge in volume trade with 4.38 lakh shares changed hand over the counter as compared to the two-week average of 1.55 lakh shares.
In a similar trend, Tata Global Beverages share price fell 4.27 per cent in intraday trade to Rs 200.65 on the National Stock Exchange. The scrip opened lower at Rs 204 against the previous closing price of Rs 209.60.
Tata Global Beverages on Tuesday reported a 49.70 per cent decline in consolidated net profit at Rs 35.99 crore for the fourth quarter ended March 31, 2019, as compared to Rs 71.56 crore in the year-ago period, weighed down by lower sales in US Coffee and Tea.
"Group net profit for the quarter and full year is lower mainly due to higher exceptional items, higher share of losses from JVs and associates and higher one-time tax credits in the previous year," the company said in the exchange filing.
In a separate development, Tata Global Beverages said that it will acquire the branded tea business of Dhunseri Tea & Industries for Rs 101 crore. The branded tea business of Dhunseri Tea and Industries is presently carried out under the brands "Lalghoda" and "Kalaghoda" which are among the leading local brands in Rajasthan.
Edited by Chitranjan kumar