Tata Coffee today reported 3.41 per cent fall in consolidated net profit at Rs 41.01 crore during the third quarter ended December 31, 2016 of the current fiscal on higher expenses.
The company's net profit stood at Rs 42.46 crore in the year-ago period.
Net income increased marginally to Rs 413.19 crore in the October-December quarter of the ongoing 2016-17 financial year from Rs 402.45 crore in the same quarter last year, Tata Coffee said in a regulatory filing.
However, the company's expenses rose to Rs 344.33 crore from Rs 328.4 crore in the said period.
Last month, the company's Board had approved the setting up of a state-of-the-art greenfield freeze dried instant coffee facility in Vietnam with a capacity of 5,000 tonnes per annum.
Tata Coffee said the the project "would be done through a subsidiary of the company to be incorporated in Vietnam." The estimated cost of the project is Rs 350 crore and is subject to completion of all legal and other formalities.
Tata Coffee is a subsidiary of Tata Global Beverages. It is Asia's largest integrated coffee company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India.
Commenting on the company's performance, Tata Coffee Managing Director Sanjiv Sarin said, "The results for the quarter reflects our sustained effort on customer centricity with focus on premium products, strong quality and service across all segments. However, we will have to carefully observe global coffee prices and Indian coffee production due to monsoon deficit."
He also mentioned that Starbucks has launched Tata Coffee's Nullore Estate's Microlot Coffee under the brand name 'Reserve" for sale in its select US stores.
"Nullore Estates Microlot is the first coffee of Indian origin to be chosen by Starbucks in this high premium segment. This a proud moment for Indian coffee," he said in a statement.
Sarin added that the company in the current year had expanded its monsooning facilities and this year's monsooned offerings have generated very good interest from roasters worldwide.
The company continues to grow its instant coffee portfolio in a robust manner by focusing on enhanced sales in key geographies and strengthening customer relationships, he added.
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