Tata Coffee rose 2.51% to Rs 114.35 after consolidated net profit jumped 26.59% to Rs 31.52 crore on 6.3% increase in net sales to Rs 532.76 crore in Q3 December 2020 over Q3 December 2019.
Consolidated total income was driven by improved performance from the group's value-added businesses. Profit before tax (PBT) soared 15.2% to Rs 67.98 crore in Q3 December 2020 as against Rs 59.03 crore in Q3 December 2019. Current tax expense for the quarter fell 0.3% to Rs 15.14 crore as against Rs 15.18 crore in Q3 December 2019. The Q3 result was declared after market hours yesterday, 27 January 2021.
Robust operating performance from subsidiary Eight O'Clock Coffee [EOC] was aided 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 company's disclosure stated.
Commenting on the Q3 performance, Chacko P. Thomas, the managing director (MD) of Tata Coffee, has said that: "Despite challenging conditions our overall performance has seen improvement. Our India Instant Coffee exports for the quarter have been lower due to logistics, port congestion, global shortage of containers and further lockdowns in Europe. However, we see this as a temporary issue. We have seen stable performances across key geographies. Our Vietnam operations continue to be robust and order pipeline continues to be healthy."
"Our tea performance during the quarter has been strong benefitting from improved realisations. We see slowdown in demand in some geographies in the short-term, especially in the 'Out of Home' consumption due to the pandemic situation. The company continues to drive aggressively cost optimization initiatives across its operations. Our subsidiary, Eight O'Clock Coffee [EOC] has recorded improved performance driven by increased realisations and favourable channel mix. Focus on innovations continues with increased momentum," he added.
Tata Coffee is a subsidiary of Tata Consumer Products. It is Asia's largest integrated coffee company, the second largest exporter of instant coffee and foremost producer of specialty coffee in India.
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