Shares of Tata Coffee rallied over 9 per cent in Friday's session to hit a 52-week high of Rs 139.70 on the BSE after the company posted a strong set of results for the quarter ended March 2021.
The company on Thursday posted a more than two-fold jump in consolidated net profit at Rs 57.37 crore for the fourth quarter of 2020-21 fiscal on strong income, as against a net profit of Rs 24.05 crore in the same quarter of the previous fiscal.
Net income during the quarter under review rose by 17 per cent year-on-year (YoY) to Rs 612.06 crore from Rs 523.46 crore. Expenses remained higher at Rs 529.48 crore as against Rs 475.71 crore in the said period.
The company's managing director Chacko P Thomas said the Q4 performance remained strong despite challenging conditions. "Instant coffee exports during the quarter were higher despite logistics issues and a fresh wave of lockdowns in Europe, which are expected to ease in the near future," he said.
Going ahead, however, the company sees a slowdown in demand in some geographies in the short-term, especially in the out-of-home consumption due to the Covid-19 pandemic.
"We are also keeping a close watch on any other possible impacts of the second wave of this pandemic," Thomas said, adding that the company continues to drive aggressive cost optimisation initiatives across its operations.
The board also recommended a dividend of Rs 1.50 per share for 2020-21 fiscal.
At 11.09 am, the scrip was trading at Rs 132.85, up 3.91 per cent, as against a decline of 0.68 per cent to 49,429 in the S&P BSE Sensex.