Tata Coffee net down 26.78% in Dec`06 qtr

January 29, 2007
Tata Coffee (Q, N,C,F)* has reported a net decline of 26.78% to Rs 35.23 million for the quarter ending December 2006 as compared to Rs 48.12 million for the quarter ended December 2005.

Net sales for the quarter rose 32.20% to Rs 649.09 million compared with Rs 490.99 million for the corresponding quarter, a year ago. Total income also grew 31.10% to Rs 646.41 million as against Rs 493.06 last year.

There is an increase of 31.57% in income from operations and 21.54% in operating profit during the three months ended Dec. 31, 2006 as compared to the corresponding period for the previous year.

Earning per share of the company stood at Rs 2.65 compared with Rs 3.86 in the previous year.

During the quarter, the company entered into an agreement with the Ugandan government to set up a 3,600 metric tonne per annum plant with an investment of Rs 700 million, to market instant coffee to be produced in the proposed Ugandan plant in EU and China.

In early 2006, the company acquired US based Eight `o`Clock Coffee Company (EOC) from Gryphon Investors for a consideration of USD 220 million.

As per the terms of the company`s rights issue of partly convertible debentures, 6,208,332 equity shares of Rs 10 each at a premium of Rs 240 per share, and 6,208,332 of 7% secured redeemable non convertible debentures of Rs 150 each were allotted on Dec. 29, 2006. Consequently, the paid up share capital of the company stands increased to Rs 186,770,370 with effect from Dec. 29, 2006.

Tata Coffee (TCL), formerly Consolidated Coffee and subsidiary of Tata Tea since 1961, is the largest coffee plantation company in Asia with estates located in Coorg, Hassan & Chickmagalur districts of Karnataka. TCL has commissioned an agglomeration unit at its instant coffee factory creating facilities for a diverse range of product offerings in the instant coffee business.

Shares of the company are trading lower Rs 4.45, or 1.47% at Rs 228. Total volume of shares traded at the BSE was 2,462. (12:21 p.m., Monday)

* Q - Quote , N - News , C - Chart , F - Financials