Tata Coffee limited announces Financial Results for the Quarter ended June 30, 2020

Tata Coffee Limited [TCL] announced its Standalone and Consolidated Financial Results for Q1FY21 this evening.

Highlights

- Consolidated Total Income for Q1FY21 higher by 26%
- Consolidated Net Profit for Q1FY21 grew by 77%
- Higher Plantations revenues in Ql

Q1FY21 - Consolidated Financial Results

- Consolidated Total Income for the quarter higher at Rs.592 crore compared to Rs.472 crore for the corresponding quarter of the previous year, an increase of 26%, driven by improved performance from the value-added businesses

- Strong operating performance from Eight' Clock Coffee (EOC) driven by higher volumes.

- TCVCL operations continues to improve with robust sales to key customers.

- Consequently, the Group's Consolidated Net Profit for Q1FY21 higher at Rs.62 crore compared to Rs.35 crore for the corresponding quarter of the previous year, an increase of 77%

Q1FY21 - Standalone Financial Results

- Standalone Total Income lower by 12% mainly on account of lower Sales of Instant Coffee due to COVID-19 related supply chain disruptions

- Pricing pressures on Instant Coffee business due to lower short-term demand with outof-home channels impacted across the globe but focus on operating efficiencies continue

- Higher Plantations revenues at Rs.107 crore vs. Rs.92 crore for the corresponding quarter of the previous year, an increase of 16%, driven by highest ever Coffee Sales in Ql of any year till date

- Plantations profitability for Q1FY21 was lower compared to the corresponding quarter of the previous year, impacted mainly by lower Pepper profitability. However, sequentially the plantation profitability is substantially higher compared to the previous quarter

Commenting on the performance of the Company and the Group, Mr. Chacko P. Thomas, Managing Director, Tata Coffee Limited, said - "Our Instant Coffee exports from India continue to be healthy, running to full capacities. We have seen stable performances across key geographies. Our Vietnam operations continue to grow stronger quarter-on-quarter. Our Green Bean sales during the quarter were at its highest ever. We see slowness in demand especially in out of home consumption due to the pandemic situation though we expect the situation to improve over time. The Company had launched its single origin specialty Arabi ca brand "Sonnets" through its e-commerce site, which has received an enthusiastic response. The Company had to briefly suspend its operations in India in the initial part of Q1FY21 due to COVID-19 pandemic as per Government directives. The operations have since resumed and the units are functioning at near normal levels with adequate safeguards keeping in mind the safety and health of our employees as well as our customers, which are of paramount importance. The Company continues to monitor the evolving situation. The Company also continues to drive aggressively its cost optimisation agenda. Our Subsidiary, Eight O'Clock Coffee (EOC) has recorded substantially improved performance driven by increased off-takes."

Shares of TATA COFFEE LTD. was last trading in BSE at Rs.83.25 as compared to the previous close of Rs. 81.9. The total number of shares traded during the day was 69434 in over 779 trades.

The stock hit an intraday high of Rs. 84 and intraday low of 82.1. The net turnover during the day was Rs. 5767148.

Source : Equity Bulls

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