Tata Coffee Q2 result: Net profit jumps 317.6% to Rs 142 cr, revenue rises 31%

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Tata Coffee (TCL) on October 17 reported a 317.6 percent surge in its consolidated net profit at Rs 142 crore for the quarter ended September 30, 2022. The company's profit stood at Rs 34 crore in the year-ago period.

Sequentially, Tata Coffee's profit increased 215 percent in Q2FY23 from Q1FY23.

Revenue from operations witnessed a growth of 30.7 percent to Rs 718 crore during the quarter under review, compared to Rs 549 crore in the same period of the previous fiscal.

"The improved price realisations, as well as higher sales quantities of plantation products and superior product mix in the instant coffee business, especially in Vietnam operations, has aided the company's quarterly performance," Tata Coffee said in a regulatory filing.

However, TCL's earnings before interest, taxes, depreciation, and amortisation (EBITDA) were down 19.7 percent at Rs 82.1 crore against Rs 102.3 crore in the same quarter last fiscal. Its EBITDA margin came in at 11.4 percent versus 18.6 percent on a year-on-year basis.

Further, the wholly-owned subsidiary of Tata Consumer Products Limited (TCPL) also stated that its consolidated total income for the quarter also increased to 30.5 percent to Rs 723 crore compared to Rs 554 crore for the corresponding quarter of the previous fiscal, driven by higher realisations in all businesses of the company.

Moreover, the overall revenue growth in the extractions business was around 26 percent, it added. The overall revenue growth in the plantations business was around 77 percent. The operating performance of "Eight'O Clock Coffee" business was impacted during the quarter by higher input costs and lag in recovery of higher coffee costs from the market, the company further noted.

Commenting on the earnings, Chacko P Thomas, Managing Director, Tata Coffee Limited, said, "....There is however continuing inflationary pressure on costs. Our Subsidiary, Eight O'clock Coffee [EOC] has registered higher revenues, though the profitability for the quarter has been impacted due to higher coffee input costs and lag in pricing recovery from the market which is expected to improve in the ensuing quarters."

Meanwhile, shares of Tata Coffee on Monday (October 17) ended 0.82 percent higher at Rs 215.80 apiece on BSE ahead of the quarterly earnings announcement.