Tata Coffee rose 1.25% to Rs 215.50 after the company's consolidated net profit jumped 38.4% to Rs 69.46 crore on a 17.5% increase in net sales to Rs 626.07 crore in Q3 FY22 over Q3 FY21.
The group's consolidated profit for Q3 FY22 was higher mainly driven by improved operating performance in the value-added businesses.
Consolidated total income (or net sales) for the quarter grew as compared the corresponding quarter of the previous year, primarily by improved performance in the value-added businesses. Consolidated profit before tax (PBT) surged 34.9% to Rs 91.72 crore in Q3 FY22 from Rs 67.98 crore in Q3 FY21.
Tata Coffee's Vietnam operations continue to deliver improved operating performance, despite inflationary ocean freight costs. As per the company's press release, both production and sales volume continue to show steady improvements over the corresponding quarter of the previous year.
Commenting on the Q3 performance of the company and the group, Chacko P Thomas, the managing director of Tata Coffee, has 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 Plantation performance of Coffee and Pepper have also been good. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded improved performance on account of better realisations and favourable channel mix."
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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