Tata Coffee soars after Q2 PAT rises 174% YoY

18 Oct 2022 , 09:24 AM

The sharp improvement in profitability was driven by improved performance of Plantation and Instant Coffee businesses and one-time exceptional income on disposal of a non-core/surplus property. Consolidated total income for the quarter higher at Rs 723 crore compared to Rs 554 crore for the corresponding quarter of the previous year, an increase of 30%, driven by higher realisations in all businesses of the company. The improved price realisations as well as higher sales quantities of plantation products and superior product mix in Instant Coffee business, especially in Vietnam operations has aided the companys quarterly performance. The overall revenue growth in the Extractions business was around 26%. The overall revenue growth in Plantations business was around 77%. The operating performance of EightO Clock Coffee business was impacted during the quarter by higher input costs and lag in recovery of higher coffee costs from the market. The companys Vietnam operations continued to operate at peak capacity and delivered robust sales with improved profitability driven by higher sales of premium products. It has a healthy order pipeline. On a standalone basis, the companys total income in Q2 FY23 was at Rs 273 crore compared to Rs 199 crore for the corresponding quarter of the previous year, representing an increase of 37%, on increased revenues from Instant Coffee and Plantations driven by improved quantities sold and realisations. The performance of Tea plantations marginally improved as the realisations were substantially higher compared to previous years quarter though there continued to be adverse impact on crop. Instant Coffee business in India registered higher turnover driven by improved realisations, though the sales volumes for the quarter was lower due to slower offtakes primarily from Africa. However, Instant Coffee profitability for Q2FY23 was on similar levels as previous years quarter despite lower volumes driven by better sales mix and realisations. Chacko P Thomas, managing director, Tata Coffee, said The performance of our Instant Coffee business continues to be strong. Tata Coffees Vietnam operations continued to be robust with a healthy order pipeline. Our Plantation performance overall has also been strong, aided by improved realisations and volumes. There is however continuing inflationary pressure on costs. Our Subsidiary, Eight Oclock Coffee [EOC] has registered higher revenues, though the profitability for the quarter has been impacted due to higher coffee input costs and lag in pricing recovery from the market which is expected to improve in the ensuing quarters.? Tata Coffee is a subsidiary of Tata Consumer Products, formerly known as, Tata Global Beverages. It is Asias largest integrated coffee Company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India. Powered by Capital Market – Live News