Tata Coffee, a subsidiary of Tata Consumer Products, and a part of the Tata Group, on Wednesday posted its fiscal first quarter profit at Rs 47.48 crore, up 5.5 per cent in comparison to Rs 45.01 crore in the corresponding quarter of last year. The company said that the profit was affected due to the subdued performance of Eight O’clock Coffee (EOC). It posted revenue from operations at Rs 700.65 crore, up 5.8 per cent from Rs 662.23 crore in the first quarter of FY23. The company EBITDA stood at Rs 117.3 crore, up 0.6 per cent on-year.

While the company’s total income for the quarter was at Rs 707.93 crore during the first quarter, the total expenses stood at Rs 626.02 crore. The consolidated total income for the quarter witnessed an increase of 6 per cent driven by higher realisations in plantation coffee and instant coffee businesses both in India and Vietnam. “Tata Coffee’s Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. It has a robust healthy order pipeline,” the company said.

It further added that the operating performance of the EOC business was impacted during the quarter by lower bag volumes and higher input costs. 

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Tata Coffee’s standalone performance during Q1FY24

On a standalone basis, Tata Coffee’s total income during the quarter was at Rs 262 crore, up 7 per cent on-year, on the back of increased revenues from coffee plantation. “The operations of Tea plantations have improved as compared to the corresponding

quarter of the previous year on higher crop and better realisations,” the company said. Further, it added that the green coffee turnover and profitability improved over the previous year driven by improved prices and product mix. 

“The standalone performance of the company has been very good despite inflation and recessionary trends seen in our markets. Our Coffee Plantation performance was good, aided by improved realizations. The monsoon was deficient during the quarter in our Coffee plantations,” said Chacko P Thomas, Managing Director, Tata Coffee Limited.

He also added that the tea plantations performance was robust in the quarter driven by higher crop production and lower cost of production. “Tata Coffee’s Vietnam operations continue to be robust with a healthy order pipeline and the operations are running at maximum capacity,” said Chacko P Thomas.

Tata Coffee produces between 8,000- 10,000 MT of shade grown Arabica and Robusta Coffee at its 19 estates in South India. The company exports green coffee to countries in Europe, Asia, Middle East and North America. It is also the largest corporate producer of pepper in India. It’s two Instant Coffee manufacturing facilities in India have a combined installed capacity of 8,400 MT.