Tata Coffee reported a 44.71 percent drop in consolidated net profit for the December quarter to Rs 38.40 crore on Tuesday. Tata Coffee (TCL) reported a consolidated net profit of Rs 69.46 crore in the previous fiscal year in a regulatory filing.
Consolidated total income for the quarter increased by 19.13 percent to Rs 754.76 crore during the October-December period, compared to Rs 633.52 crore in the same period last year, driven by higher realisations in the company’s Eight O’ Clock Coffee (EOC) and instant coffee businesses.
The firm, a part of Tata Consumer Products formerly known as Tata Global Beverages, reported that higher pricing realisations in the instant coffee business in India and Vietnam, driven by superior product mix, boosted the company’s quarter performance.
Higher input and other expenses hampered the operating performance of the EOC business during the quarter under review, which are likely to lessen in the following quarters, it added.
Tata Coffee’s Vietnam operations continue to achieve strong sales and better profitability, thanks to increased sales of premium goods, the company said.
Commenting on the performance, Chacko P Thomas, Managing Director, Tata Coffee, said “The performance of our Instant Coffee business continues to be robust. Tata Coffee’s Vietnam operations continue to be strong with a healthy order pipeline.”
There is however continuing inflationary pressure on costs and impact on Instant Coffee sales in some geographies, he said.
“Our plantation performance is subdued due to declining coffee prices, though the outlook for crop is good. Our Subsidiary, Eight O’clock Coffee [EOC] has registered higher revenues through the profitability for the quarter has been impacted due to higher costs,” he added.