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Tata Coffee spurts after Q4 PAT soars 139% to Rs 57 cr

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Tata Coffee rallied 4.42% to Rs 133.50 after the company's consolidated net profit soared 138.5% to Rs 57.37 crore on 14.4% jump in net sales to Rs 591.23 crore in Q4 FY21 over Q4 FY20.

Consolidated total income for the quarter stood higher at Rs 612 crore as compared to Rs 523 crore for the corresponding quarter of the previous year, registering an increase of 17% Y-o-Y (year-on-year), driven by improved performance from the plantations business partly offset by the group's value- added businesses, which had a marginal decline due to the pandemic induced logistics issues as well as muted demand in specific geographies.

Good operating performance from Eight O'Clock Coffee [EOC] driven by higher sales realisations and favourable channel mix. Tata Coffee Vietnam operations continue to improve with robust sales to key customers and healthy order pipeline.

On a consolidated basis, Tata Coffee recorded a 50.02% jump in net profit to Rs 211.55 crore in FY21 as against Rs 141.01 crore in FY20. Revenue from operations surged 14.69% to Rs 2,254.95 crore in FY21 over FY20.

Meanwhile, the board has recommended a dividend of Rs 1.50 per equity share for the year ended as on 31 March 2021.

Commenting on the Q4 performance of the company and the group, Chacko P. Thomas, the managing director (MD), Tata Coffee, said: "Despite challenging conditions, our overall performance has been strong. Our India Instant Coffee exports for the quarter have been higher despite logistics issues and fresh wave of lockdowns in Europe, which are expected to ease in the near future. We have seen stable performances across key geographies. Our Vietnam operations continue to be robust and order pipeline continues to be healthy. We see slowdown in demand in some geographies in the short-term, especially in the 'Out-of-Home' consumption due to the COVID 19 pandemic, and we are also keeping a close watch on any other possible impacts of the second wave of this pandemic. The company continues to drive aggressive cost optimization initiatives across its operations. Our subsidiary, Eight O'Clock Coffee [EOC] has recorded during the year improved performance driven by higher volumes, increased realisations and favourable channel mix. Focus on innovations continues with increased momentum."

Tata Coffee is a subsidiary of Tata Consumer Products. It is Asia's largest integrated coffee company, the second largest exporter of instant coffee and foremost producer of specialty coffee in India.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, April 30 2021. 10:25 IST