Tata Coffee, heavily impacted by rupee appreciation, has reported a 48.34% decline in net profit at Rs 2.03 crore for the first quarter ended June 30, 2007 as against Rs 3.93 crore in Q1FY07. Sales grew marginally (3.42%) to Rs 59.78 crore from Rs 57.80 crore in Q1FY07.M H Ashraff, managing director, Tata Coffee said: "Despite the appreciation in the exchange rate of the rupee which has affected realisations, income from operations was up 3% over the previous year mainly due to higher realisation of plantation crops."The operations of the instant coffee division was affected by a combination of adverse exchange rates, higher input costs and initial starting problems with the freeze dried plant. The operations of the freeze dried plant, which was commissioned on March 27, 2007, has since been stabilised and will go on commercial production in a few days."
