Tata Coffee soars 16% as net profit grows 77% YoY in June quarter

Shares of Tata coffee soared 16 per cent to Rs 96.80 in the early morning trade on the BSE on Wednesday after the company reported robust performance for the April-June (Q1FY21) quarter. The Tata Group company's consolidated net profit increased by 77 per cent to Rs 62 crore on the back of strong volumes growth, as against Rs 35 crore profit clocked in the previous year quarter.

Consolidated total income, on the other hand, rose 26 per cent year-on-year (YoY) at Rs 592 crore compared to Rs 472 crore for the corresponding quarter of the previous year, driven by improved performance from the value-added businesses.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 37 per cent YoY at Rs 115 crore, while margins improved to 19.56 per cent from 17.94 per cent in previous year quarter.

“The strong operating performance from Eight' Clock Coffee (EOC) was driven by higher volumes. Tata Coffee Vietnam Company (TCVCL) operations, too, continue to improve with robust sales to key customers,” Tata Coffee said in a press release.

Tata Coffee is a subsidiary of Tata Consumer Products, formerly known as Tata Global Beverages. It is Asia's largest integrated coffee Company, the second largest exporter of instant coffee and foremost producer of specialty coffee in India.

At 09:28 am, the stock was trading 12 per cent higher at Rs 93.15 on the BSE, as compared to 0.23 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped five-fold with a combined 4.04 million equity shares changing hands on the NSE and BSE till the time of writing of this report.