Tata Coffee net dips 10.7% in Q2

October 26, 2007
Tata Coffee reported a 10.70% drop in net profit at Rs 23.20 million for the quarter ended September 2007, compared with Rs 25.98 million for the same quarter, last year.

Net sales rose 19.97% to Rs 807.10 million in the quarter, from Rs 672.74 million in the same quarter, a year ago.

Total income stood at Rs 819.60 million for the quarter ended September 2007 where as the same was at Rs 677.62 million for the same quarter, last year.

The basic earnings per share after extraordinary items stood at Rs 1.24 for the quarter ended September 2007.

Quarterly results (Rs in mn)
As at Sep 2007 Sep 2006 %Change
Net Sales 807.10 672.74 19.97
Net Profit 23.20 25.98 (10.70)
EPS 1.24 2.08 -

The company says that though Income from operations increased by 12% over the corresponding 6 months of the previous year, the operating profit before showed a decline of 28% which was mainly on account of the sharp appreciation of the Rupee, the increase in raw coffee prices and delayed stabilization of the freeze dried plant which adversely impacted the Instant coffee operations.

Tata Coffee was formerly known as Consolidated Coffee and is a subsidiary of Tata Tea since 1961. It has the largest coffee plantation company in Asia with estates located in Coorg, Hassan and Chickmagalur districts of Karnataka. The company also grows pepper and cardamom in its coffee estates. The coffee brands of the company are Coorg 100% Pure Coffee, Coorg Double Roast, Tata Cafe, Tata Kapi, and Mr. Bean.

It has a market share of 15% and exports 65%. The company has set up a JV with its Russian partners for marketing its instant coffee in Russia.

Shares of the company declined Rs 2.60, or 1.05% to end at Rs 245.80. The total volume of shares traded was 1,804 at the BSE.(Thursday ).