CCL Products Q2 net up 29% at Rs 26 cr

Its consolidated turnover increased to Rs 247 cr from Rs 175 cr during the same period a year ago

Hyderabad-based coffee producer CCL Products (India) Limited reported a 29.3 per cent rise in its net profit at Rs 26.13 crore for the quarter ended September 2014, as compared with a profit of Rs 20.21 crore accrued in the corresponding quarter previous year. Its consolidated turnover increased to Rs 247.24 crore from Rs 175.61 crore during the same period.

CCL executive chairman, C Rajendra Prasad, said that the company’s Vietnam plant, which commenced operations this year, had contributed to the rise in profits. The Vietnam facility, which has an installed capacity of 10,000 tonne per annum (tpa), has totally been exempted from payment of tax for the first two years of its operations. It has added Rs 52 crore to CCL’s turnover during the second quarter of this year.

Stating that CCL was continuously registering a 30 per cent year-on-year growth rate since 2003, except in 2007-08, Prasad told mediapersons that the same growth rate was expected to continue for the next three years. Accordingly, the company’s turnover and net profit were expected to touch Rs 1,000 crore and Rs 100 crore in the current financial year as against Rs 716.82 crore and Rs 64.41 crore respectively last year.

During the first half of the current year, the company’s turnover and net profit stood at Rs 422.85 crore and Rs 46.34 crore respectively.

On CCL’s future plans, he said that the capacity of the 62-acre, $50-million Vietnam plant would be doubled after three years, following achievement of 80 per cent utilisation of the current capacity. Plans are also afoot to open a packing unit in the US.

On the domestic front, he said the capacity of the company’s manufacturing facility in Guntur district of Andhra Pradesh would be expanded from the existing 15,000 tpa to 20,000 tpa by December 2015. The company’s own brand sales turnover in the Indian market was expected to be around Rs 60 crore this year.