Tata Coffee gains after Q2 FY22 PAT rises 27% Y-o-Y

Tata Coffee advanced 2.56% to Rs 240.20 after the company's consolidated net profit jumped 26.55% to Rs 53.66 crore on a 0.56% increase in revenue from operations to Rs 546.52 crore in Q2 FY22 over Q2 FY21.

The consolidated total income for the quarter higher at Rs 554 crore as compared to Rs 547 crore for the corresponding quarter of the previous year, recorded an increase of 1% Y-o-Y (year-on-year), driven primarily by improved sales of instant coffee business in India.

Tata Coffee Vietnam operations continue to deliver stable operating performance, despite inflationary ocean freight costs. The group's consolidated profit for Q2 FY22 grew over the year on account of improved performance in the value-added businesses.

 

On a standalone basis, the instant coffee business registered a substantially higher export volumes and turnover as against the corresponding quarter of the previous year. This has been despite lower demand with 'Out-of-Home' channels impacted across the globe due to the pandemic and also continued inflationary pressures on ocean freight costs and input costs, including power & packing material. In a bid to mitigate the impact of these external factors on the business, the company continues to focus on internal operating efficiencies.

The plantations segment profitability for Q2 FY22 was higher driven by higher volumes sold during the quarter, improved realisations on Coffee and Pepper crop, offset partially on lower profitability in tea attributable to lower crop and prices.

Commenting on the Q2 performance of the company and the group, Chacko P Thomas, the managing director of Tata Coffee, said, "Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved. Our India Instant Coffee performance has been robust. We have seen stable performances across key geographies. Our Vietnam operations continue to be healthy despite higher sea freight costs , and order pipeline continues to be encouraging. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded improved performance on account of favourable channel mix and better cost management."

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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