The consolidated total income of Tata Coffee Limited (TCL) for the first quarter of the current financial year (Q1FY24) came at Rs 708 crore, compared to Rs 666 crore for the corresponding quarter of the previous financial year, the company said in a BSE filing.
This shows an increase of six per cent, which was primarily driven by higher realisations in coffee plantations and instant coffee businesses both in India and Vietnam, according to an official press release.
The company's consolidated profit for Q1FY24 stood at Rs 62 crore, compared to Rs 65 crore year-on-year (YoY). This is due to the subdued performance of the Eight O' Clock Coffee (EOC) business.
The operating performance of Eight O' Clock Coffee (EOC) business was impacted during the quarter due to higher input costs.
The operations in Vietnam by Tata Coffee, an Indian company that produces coffee, tea, pepper, and related products, continue to deliver strong sales with improved profitability.
The standalone total income for the quarter is Rs 262 crore, compared to Rs 243 crore for the corresponding quarter of the previous year, representing an increase of seven per cent on increased revenues from coffee plantations.
Tea plantation operations have improved as compared to the corresponding quarter of the previous year on higher crop and better realisations. Green coffee turnover and profitability has improved over the previous year. It was driven by improved prices and product mix.
Chacko P Thomas, managing director, Tata Coffee Limited, said that the company's standalone performance has been good despite inflation and recessionary trends seen in our markets.
"Our coffee plantation performance was good, aided by improved realisations. The monsoon was deficient during the quarter in our coffee plantations. Tata Coffee's Vietnam operations continue to be robust with a healthy order pipeline and the operations are running at maximum capacity," he said.
Thomas added that the profitability of EOC has been impacted during the quarter due to lower volumes and higher input costs, but overall, it has been a satisfying performance.