Consolidated profit before tax tumbled 20.7% to Rs 62.70 crore in Q1 FY22 as against Rs 79.06 crore in Q1 FY21. The Q1 earnings was declared during trading hours today, 28 July 2021.
Consolidated total income for the quarter was lower at Rs 538 crore as compared to Rs 592 crore for the corresponding quarter of the previous year, registering a decrease of 9%; mainly on account of lower Eight O'Clock Coffee [EOC] sales on account of normalization of demand peaks from the previous year, partially offset by improved performance of Instant Coffee business both in India and Vietnam, as well as better operating performance in plantations business.
Overseas, Tata Coffee Vietnam operations continue to deliver robust sales with improved profitability, despite substantially higher ocean freight cost impact. It also recorded a healthy order pipeline.
Commenting on the Q1 performance of the company and the group, Chacko P Thomas, the managing director (MD) of Tata Coffee, said that: Despite challenging conditions, our overall performance has been stable. Our India Instant Coffee exports for the quarter have been higher despite logistics issues and inflationary impacts on input costs and Ocean freight costs. We have seen stable performances across key geographies. Our Vietnam operations continue to improve 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. We are also closely monitoring other possible impacts of the multiple waves of this pandemic across the globe. The company continues to drive aggressive cost optimization initiatives across its various operations. Our Subsidiary, Eight O'Clock Coffee [EOC] has during the quarter recorded subdued performance on lower volumes, offset partially by improved 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.
Shares of Tata Coffee slumped 8.77% to end at Rs 214.75 on BSE. The stock traded in the range of Rs 208 to Rs 246.75. The scrip hit all-time high at Rs 246.75 during intraday trade.
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