Tata Coffee consolidated net profit rises 46.72% in Q2FY22 numbers; stock hits 52-week high

Tata Coffee Vietnam operations continue to deliver stable operating performance, despite inflationary ocean freight costs.

Oct 19, 2021 04:10 IST India Infoline News Service

Tata Coffee recorded a consolidated net profit jumped 46.72% to Rs34.04cr in the quarter ended September 2021 as against Rs23.20cr during the previous quarter ended September 2020.

The sales of the company rose 0.94% to Rs548.52cr in the quarter ended September 2021 as against Rs543.43cr during the previous quarter ended September 2020.

The stock ended at Rs235.60 up by Rs1.4 or 0.6% from its previous closing of Rs234.20 on the BSE. The scrip opened at Rs240.20 and touched a high and low of Rs254 and Rs230.25 respectively.

Tata Coffee Vietnam operations continue to deliver stable operating performance, despite inflationary ocean freight costs.

Instant Coffee business registered substantially higher export volumes and turnover compared to the corresponding quarter of the previous year. This has been despite lower demand with 'Out-of-Home' channels impacted across the globe due to the pandemic and also continued inflationary pressures on ocean freight costs and input costs, including power & packing material. To mitigate the impact of these external factors on the business, focus on internal operating efficiencies continue.

Plantations Segment profitability for Q2FY22 was higher driven by higher volumes sold during the quarter, improved realisations on Coffee and Pepper crop, offset partially on lower profitability in Tea attributable to lower crop and prices.

Commenting on the performance of the Company and the Group, Mr. Chacko P Thomas, Managing Director, Tata Coffee Limited, said "Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved. Our India Instant Coffee performance has been robust. We have seen stable performances across key geographies. Our Vietnam operations continue to be healthy despite higher sea freight costs, and order pipeline continues to be encouraging. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded improved performance on account of favourable channel mix and better cost management.

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