Tata Coffee reports Q1 net profit at Rs 62.1 crore

Tata Group company Tata Coffee reported a net profit of Rs 62.1 crore in Q1FY24 marking a decline of 5.2% compared with Rs 65 crore in the corresponding quarter of the previous financial year due to subdued performance of EOC.     

Consolidated Total Income for the quarter was higher at Rs 708 crore compared to Rs666 crore for the corresponding quarter of the previous year, an increase of 6%, driven by higher realisations in Plantation Coffee and Instant Coffee businesses both in India and Vietnam.

According to a regulatory filing, Tata Coffee's Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. It has a robust healthy order pipeline.

The operating performance of the EOC business was impacted during the quarter by lower bag volumes and higher input costs.

The operations of Tea plantations have improved as compared to the corresponding quarter of the previous year on higher crops and better realisations. 

Green coffee turnover and profitability improved over the previous year driven by improved prices and product mix.

Chacko P Thomas, Managing Director, Tata Coffee Limited, said "The standalone performance of the company has been very good despite inflation and recessionary trends seen in our markets. Our Coffee Plantation performance was good, aided by improved realizations. The monsoon was deficient during the quarter in our Coffee plantations. Tea plantation's performance was robust in the quarter driven by higher crop production & lower cost of production. Tata Coffee's Vietnam operations continue to be robust with a healthy order pipeline and the operations are running at maximum capacity. The profitability of Eight O'clock Coffee [EOC] has been impacted during the quarter due to lower volumes and higher input costs. Overall, it has been a very satisfying performance".

Source: Media reports