Tata Coffee net dips 36% to Rs 16 cr in Q4

The decline was owing to lower sales and exceptional loss due to divestment of stake in a US-based functional beverage company

Tata Coffee, a subsidiary of Tata Global Beverages and India's largest coffee plantation company, today reported 36% decline in consolidated net profit at Rs 16 crore for the fourth quarter ended March 31, 2014 compared to Rs 25 crore reported in the same quarter a year ago. The total income from operations grew marginally by 2.3% to Rs 397 crore as against Rs 388 crore a year ago.

The operating profit stood at Rs 45 crore as against Rs 64 crore, a year ago, showing a year on year decline of 30%.

The decline in profits was due to lower sales during the quarter and exceptional loss it incurred due to divestment of stake in a US-based functional beverage company. The exceptional loss during the quarter was to the tune of Rs 8.3 crore.

 

"In a plantation business, it is misleading to look at performance in one quarter. The right way is to look at the full year. Unlike the manufacturing sector, we do not produce and sell in every quarter. During the fourth quarter we were busy in harvesting and the sales were minimal," said M D Kumar, executive director, Tata Coffee.

The board of directors has declared a dividend of 130% (Rs 13 per share) for the year 2013-14.

Tata Coffee exports green coffee to countries in Europe, Asia, West Asia and North America. It produces 10,000 metric tons of coffee (arabica and robusta) at its 19 estates in South India. It also produces 8,400 tonnes of instant coffee.