Tata Coffee Ltd on Friday posted a 38.42 per cent jump in consolidated net profit at Rs 69.46 crore in the three months ended December 2021 on the back of strong revenues.
The company had clocked a net profit of Rs 50.18 crore in the same quarter of the previous financial year, according to a BSE filing.
Net revenue increased on a consolidated basis by 17.51 per cent to Rs 626.07 crore in the third quarter of this fiscal. In the year-ago period, the same stood at Rs 532.76 crore.
The company’s expenses remained higher at Rs 541.36 crore as against Rs 470.21 crore in the said period.
Tata Coffee Ltd Managing Director Chacko P Thomas said that despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, “our overall performance has improved”.
The performance of India Instant Coffee has been robust and the company has seen stable performances across key geographies, he said.
According to him, the company’s Vietnam operations continue to be healthy despite higher sea freight costs and the order pipeline continues to be encouraging.
Also, the company’s plantation business performance of coffee and pepper have been good. Subsidiary firm Eight O’Clock Coffee, during the latest December quarter, recorded improved performance on account of better realisations and favourable channel mix, he added.
Tata Coffee Ltd, a subsidiary of Tata Consumer Products Ltd, is Asia’s largest integrated coffee company and the second largest exporter of Instant Coffee and foremost producer of Specialty coffee in India.
The company produces between 8,000-10,000 tonnes of shade grown Arabica and Robusta Coffee at its 19 estates in South India. It exports Green Coffee to countries in Europe, Asia, Middle East and North America.
The company is also the largest corporate producer of pepper in India.