Tata Coffee today reported 15 per cent decline in its consolidated net profit at Rs 27.52 crore for the quarter ended September 30, on higher raw material cost.
Its net profit stood at Rs 32.36 crore in the year-ago period.
Total income from operations rose marginally to Rs 452.65 crore during the second quarter from Rs 440.41 crore in the corresponding period of the previous year, Tata Coffee said in a BSE filing.
The company’s operational expenses rose to Rs 395 crore from Rs 362 crore during the period under review.
In a statement, Tata Coffee said it has “reported an increase of 3 per cent in its consolidated total income from operations for the quarter compared to the corresponding quarter of the previous year, driven by improved performance in both its plantations and value added segment.”
“On account of high cost raw material inventory carried and used in the current quarter, and a write back of excess provisions made in the previous year’s quarter in the company’s overseas subsidiary Eight O’ Clock Coffee Company Inc (EOC), the company for the current quarter has registered a decrease in its consolidated operating profits,” it added.
Consequently, the consolidated group Net Profit, post minority interest, for the July-September period is lower compared to the corresponding quarter of the previous year.
Tata Coffee MD Sanjiv Sarin said: “The company’s focus is on premium differentiated coffees, core geographies and key customer relationships. We continuously explore new customer acquisition and product development to enhance our portfolio. This is to ensure sustained profitable growth and insulate us from commodity price volatilities.”
Tata Coffee is a subsidiary of Tata Global Beverages Ltd. It is Asia’s largest integrated coffee company, the third largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India.
The company produces more than 10,000 MT of shade grown arabica and bobusta coffees at its 19 estates in South India and its two instant coffee manufacturing facilities have a combined installed capacity of 8,400 tonnes.
It exports green coffee to countries in Europe, Asia, Middle East and North America.