Tata Coffee logs new all-time high; stock zooms 60% in a month

Shares of Tata Coffee continued their northward march, rising 4 per cent to hit an all-time high of Rs 185.80 on the BSE on Thursday in an otherwise volatile market.

The stock of the Tata Group Company surpassed its previous high of Rs 183.45, touched on November 29, 2017. In the past one month, Tata Coffee has outperformed the market by zooming 60 per cent, as compared to 4.5 per cent rise in the S&P BSE Sensex.

Tata Coffee, on April 29, had reported a strong set of results for the quarter ended March 2021, with its consolidated net profit more-than-doubling at Rs 57.37 crore, on the back of healthy sales. It had posted a net profit of Rs 24.05 crore in the same quarter of the previous fiscal.

Consolidated total income for the quarter higher at Rs 612 crore compared to Rs 523 crore for the corresponding quarter of the previous year, an increase of 17 per cent, driven by improved performance from the Plantations business partly offset by the Group’s value added businesses, which had a marginal decline due to the pandemic induced logistics issues as well as muted demand in specific geographies.

The management said the good operating performance from Eight O’Clock Coffee [EOC] driven by higher sales realisations and favourable channel mix. Tata Coffee Vietnam operations continue to improve with robust sales to key customers and healthy order pipeline, the management said.

The company’s India Instant Coffee exports for the quarter have been higher despite logistics issues and fresh wave of lockdowns in Europe, which are expected to ease in the near future. Going ahead, however, the company sees a slowdown in demand in some geographies in the short-term, especially in the out-of-home consumption due to the Covid-19 pandemic.

Tata Coffee is a subsidiary of Tata Consumer Products, formerly known as, Tata Global Beverages. It is Asia’s largest integrated coffee Company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India. The Company is the exclusive and sole supplier of Premium Specialty Arabica roaster beans to Tata Starbucks stores in India. The Company has also launched its Coffee brand, ‘Sonnets‘, which has Single Origin Specialty Arabica beans, on its e-commerce portal.