Tata Coffee Q2 net profit falls to Rs 56.70 crore

Tata Coffee Limited has announced its financial results for the quarter ended September 30, 2023.

Key Highlights:

• Consolidated Total Income for the quarter marginally lower at Rs 719 crore compared to Rs 723 crore for the corresponding quarter of the previous year, mainly on lower Coffee sales volumes in Plantations as well as in Eight O’ Clock Coffee [EOC]. 
• The Instant Coffee business comprising of both India and Vietnam improved its revenues by 12% compared to the corresponding quarter of previous year. Value added segment profitability is higher at Rs 77 crore compared to Rs 51 crore for the corresponding quarter of the previous year on improved profitability in Extractions business of India and Vietnam, driven by higher price realisations and superior product mix. 
• Tata Coffee’s Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. 
• The Group’s Consolidated Profit before Exceptional Items for Q2FY24 was higher at Rs 82 crore compared to Rs 50 crore in the corresponding quarter of the previous financial year substantially attributable to superior performance of Instant Coffee business.
• Tata Coffee reported a 151.14% decline in consolidated net profit to Rs 56.70 crore for the second quarter ended September 30.

At around 9:30 AM, shares of Tata Coffee were under pressure at Rs 258.35 per share on the BSE.

Commenting on the performance, Chacko P Thomas, Managing Director, Tata Coffee Limited, said “The performance of the company continues to be robust amidst challenging macro-economic situation with a stellar performance by our Instant Coffee business. 

Tata Coffee’s Vietnam operations continue to deliver excellent performance with a healthy order pipeline and the operations are running at maximum capacity. Our Coffee Plantation performance was subdued, due to lower volumes sold, though realizations have improved. Overall, it has been a very encouraging performance”.