Tata Coffee Ltd today posted a 21.43 per cent drop in consolidated net profit at Rs 35.08 crore for the second quarter of the 2017-18 fiscal.
Its net profit stood at Rs 44.65 crore in the same period last year, the company said in a regulatory filing.
Total income increased to Rs 387.34 crore in July- September quarter of the current fiscal from Rs 375.19 crore in the year-ago period.
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Expenses remained higher at Rs 332.56 crore as compared with Rs 306.41 crore in the period under review.
Tata Coffee Managing Director Sanjiv Sarin said: "The results for the quarter have been impacted due to soft commodity prices and lower sales volume of instant coffee on postponement of orders in one geography."
The company has achieved a breakthrough with key customers in South Asia and Australia, he said.
While climate vagaries continue to cause concern, the company has invested substantially in improving its water harvesting capability, sound agronomy practices and creating a strong key account management team, he added.
Sarin further said that the Vietnam project is making satisfactory progress, so also the project converting one of the CTC tea factories to premium Orthodox tea facility, which is nearing completion.
The company also informed that the Board accepted the resignation of Tata Coffee's current executive director T Radhakrishnan, who would be relocating as Managing Director of its Tata Coffee Vietnam.
It also approved appointment of L Krishnakumar as an Additional (Non-Executive) Director of the company with immediate effect.
Tata Coffee, a subsidiary of Tata Global Beverage, produces about 10,000 tonnes of shade grown arabica and robusta variety of coffee in its 19 estates in south India and is also one of the largest producers of pepper in the country.
The company has two instant coffee manufacturing units with a combined installed capacity of 8,400 tonnes. It exports green coffee to countries in Europe, Asia, Middle East and North America.
The company's scrip fell by 1.66 per cent to settle at Rs 157 apiece on BSE today.
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