Tata Coffee profit up 45% in Q3 on strong sales

Tata Coffee has reported 45.40 per cent profit at Rs 37.66 crore on a consolidated basis for the third-quarter of 2013-14 compared with Rs 25.90 crore in the corresponding period last year.

Profits are higher due to upswing in sales and royalties from Eight O’ Clock brand in the US and also upswing in Green Mountain Coffee Roasters operations as compared to last year.

However, total income from operations is lower by 6.25 per cent to Rs 391.93 crore in Q3 against Rs 418.09 crore during the corresponding period last year.

Segment revenues Coffee and other produce reported a revenue of Rs 367.28 crore (last year Rs 395.93 crore), tea Rs 18.35 crore (Rs 16.10 crore), estate supplies division Rs 7.18 crore (Rs 7.62 crore) and others Rs 94 lakh (Rs 90 lakh).

Earnings per share stood at Rs 20.17 against Rs 13.62.

According to Harish Bhat, Chairman, “The plantation products of coffee and pepper continued its good performance. There has been a marked swing in the traditional market of the company’s instant coffee products.”

During the last six months, the company has developed alternate markets in new geographies outside India.

These markets are being serviced from the expanded capacity at the Theni unit and from the newly commissioned packaging plant.

anil.u@thehindu.co.in