Tata Coffee posts nearly 6% jump in net profit to Rs 42.4 crore

Tata Coffee Ltd on Wednesday posted nearly 6 per cent jump in its consolidated net profit to Rs 42.40 crore for September quarter on improved revenues.

The company had posted a net profit of Rs 40.13 crore in the corresponding quarter of previous fiscal, Tata Coffee said in a regulatory filing.

Net income in the second quarter of the current fiscal rose to Rs 546.63 crore from Rs 486.05 crore in the year-ago period.

Expenses remained higher at Rs 488.76 crore as against Rs 439.12 crore in the said period, the filing said.

"Our Instant Coffee exports from India continue to be healthy, with our plants running to near full capacities. We have seen stable performances across key geographies. Our Vietnam operations continue to grow stronger quarter-on-quarter," Tata Coffee Ltd Managing Director Chacko P Thomas said.

He said green bean sales during the quarter was better, despite strong headwinds due to lower terminal prices.

"We see slowness in demand in the short-term, especially in the 'Out of Home' consumption due to the pandemic situation," he said, adding that the company continues to aggressively drive cost optimization initiatives across its operations.

Subsidiary firm Eight O'Clock Coffee has recorded improved performance driven by increased realisations and favourable channel mix. The company's focus on innovations continues with increased momentum, he added.

Tata Coffee Ltd is Asia's largest integrated coffee company, second largest exporter of instant coffee and foremost producer of specialty coffee in India.

The company produces between 8,000-10,000 tonnes of Arabica and Robusta coffee at its 19 estates in south India.

Shares of Tata Coffee closed at Rs 108.95 apiece on BSE, down 0.37 per cent over previous close.