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Sri Lanka Tata tea unit June net falls 37-pct

Aug 03, 2009 (LBO) – Sri Lanka's Watawala Plantations said net profit in the June 2009 quarter fell 37 percent to 37 million rupees from a year ago with the bottom line buoyed by palm oil and retail marketing earnings. Sales rose three percent to 1.1 billion rupees in the period, the company, a unit of India's Tata Tea, said in a stock exchange filing.

According to a segmental analysis of the results, the firm's tea and rubber plantations made losses in the quarter while palm oil made profits along with its retail marketing and export businesses.

But the results showed net profit from exports fell almost 92 percent to four million rupees in the June 2009 quarter from the year before.

Profits from palm oil rose almost seven percent to 45 million rupees in the June 2009 quarter from the year before.

The firm's other operating income shot up 128 percent to 37 million rupees from a year ago while finance costs went up 87 percent to 30 million.