Tata Coffee Q4 result: A look at how it performed in previous quarters

Tata Group in March 2022 announced a merger between Tata Coffee and Tata Consumer Products, NCLT's nod is expected soon

Tata Coffee, a subsidiary of Tata Group, is scheduled to announce its financial results for the last quarter of 2022-23 (Q4FY23) tomorrow. In the previous quarter, ending December 2022, it reported a net profit of Rs 26.61 crore. It was 61.66 per cent lower than Rs 69.46 crore reported in same quarter in 2021 (Q3FY22). 

Founded in 1922, the company, among other things, supplies coffee beans to Starbucks Coffee Company in India.  

In Q3FY23, Tata Coffee reported a revenue of Rs 273.04 crore. It was 12.26 per cent higher than the revenue of Rs 261.44 crore in Q2FY23.

During the announcement of the results earlier in January, Tata Coffee managing director Chacko P Thomas said, "The performance of our instant coffee business continues to be robust. Tata Coffee's Vietnam operations continue to be strong with a healthy order pipeline. There is, however, continuing inflationary pressure on costs and impact on instant coffee sales in some geographies".

 

He added, "Our subsidiary, Eight O' Clock Coffee, has registered higher revenues though the profitability for the quarter has been impacted due to higher costs."

Tata Group in March 2022 announced a merger between Tata Coffee and Tata Consumer Products (TCPL). Following the effectiveness of the scheme, the shareholders of TCL (other than TCPL) as on record date will receive three equity shares of TCPL for every 10 equity shares held in TCL. This will be done following the issuance of one equity share of TCPL for every 22 equity shares of Tata Coffee, in consideration for the demerger and 14 equity shares of TCPL for every 55 equity shares of Tata Coffee.

The National Company Law Tribunal's (NCLT's) go-ahead for the merger is expected soon.

In the Q2FY23, the company had recorded a higher net profit of Rs 143.55 crore mainly on account of a fall in expenditure to Rs 84.33 crore. In Q1FY23, the net profit was 29.96 crore.  

Interestingly, the company has seen a steady rise in the revenue in FY23 so far, from Rs 227.12 crore in Q1FY23 to Rs 273.04 crore in Q3FY23. 

Tata Coffee share price

On Monday, the shares of the company closed over 1 per cent in the red at Rs 207 on BSE. On NSE, it closed at Rs 206.5, nearly 1.25 per cent in the red.