Coffee day stock soars ~10% owing to PAT of Rs18.80cr in Q3FY22

In Tuesday’s noon trade, Coffee Day Enterprises Ltd. was trading at Rs61.10, up by Rs5.55 or 9.99% against its previous closing price of Rs55.55. So far it remained in the higher levels and has touched day’s high of Rs61.10, and a low of Rs58.25.

Coffee Day reported a consolidated PAT of Rs18.80 crore against a loss of Rs110.41 crore in the previous corresponding quarter, reflecting on its complete turnaround strategy. The company managed to expand its profits despite recording lower revenue, owing to a severe decline in its expenses during the current quarter at Rs169.69 crore against Rs413.63 crore for Q3FY21.

Its revenue in the quarter ended December 2021 stood at Rs183.49 crore as compared to Rs267.53 crore for the quarter ended December 2020, registering a decline of 31.41% yoy.

Company’s revenue from coffee and related business for the quarter ended December 2021 stood at Rs157.86 crore as compared to Rs123.72 crore for the previous corresponding quarter, up by 27.59% yoy.

Company’s revenue from hospitality business managed to gain a marginal share of 15.30% during the current quarter at Rs13.41 crore against Rs11.63 crore in the previous corresponding quarter.

The company’s revival strategy seems to be working out well for it even after severe disruptions in the business, giving it a positive outlook for upcoming quarter.