Tata Coffee first quarter consolidated net down 26% at Rs 46 crore

Tata Coffee Ltd (TCL) on Wednesday reported a 26 per cent decline in consolidated net profit at Rs 46 crore for the quarter ended June 2021.

The company's net profit during the corresponding quarter of 2020-21 stood at Rs 62 crore, TCL said in a BSE filing.

Consolidated total income dipped by 9 per cent to Rs 538 crore as compared to Rs 592 crore in the same quarter of FY21.

"Despite challenging conditions, our overall performance has been stable. Our India Instant Coffee exports for the quarter have been higher despite logistics issues and inflationary impacts on input costs and Ocean freight costs.

"We have seen stable performances across key geographies. Our Vietnam operations continue to improve and the order pipeline continues to be healthy," TCL Managing Director Chacko P Thomas said.

TCL saw slowdown in demand in some geographies in the short-term, especially in out-of-home consumption due to the COVID-19 pandemic, it stated.

"We are also closely monitoring other possible impacts of the multiple waves of this pandemic across the globe. The company continues to drive aggressive cost optimization initiatives across its various operations.

"Our Subsidiary, Eight O'Clock Coffee (EOC) has during the quarter recorded subdued performance on lower volumes, offset partially by improved realisations and favourable channel mix. Focus on innovations continues with increased momentum," Thomas added.

Shares of the company closed at Rs 214.75, down by 8.7 per cent on BSE.