Q4 results: Tata Coffee’s profit rises 20% on strong demand, announces 300% dividend
Several coffee processors, including Tata Coffee, have said in recent months that demand from restaurants, cafes, and offices has bounced back as people venture out more frequently.
Tata Coffee Ltd (TACO.NS) reported a nearly 20 per cent increase in its Q4 profit on Tuesday (April 18), as the Indian coffee company booked sales benefits from higher demand for hot beverages.
Total income for the quarter was higher at Rs 736 crore compared to Rs 663 crore for the corresponding quarter of the previous year, an increase of 11 per cent, driven by higher realisations in Eight O' Clock Coffee (EOC), Instant Coffee, as well as Plantation Coffee businesses of the Company.
Several coffee processors, including Tata Coffee, have said in recent months that demand from restaurants, cafes, and offices has bounced back as people venture out more frequently.
Overall revenue from operations climbed 10.2 per cent to 7.23 billion rupees from Rs 656 crore a year ago, while net profit increased to Rs 48.8 crore.
The Instant Coffee business comprising India and Vietnam improved its revenues by 18 per cent compared to the corresponding quarter of the previous year. The operating performance of the EOC business was impacted during the quarter by lower bag volumes and higher input costs.
The company in a regulatory filing said that Tata Coffee's Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. It has a robust order pipeline.
The company has announced a dividend of Rs 3 per share (300 per cent).
Shares of the company closed 0.5 per cent higher on Tuesday, trimming their decline to roughly 5 per cent this year.
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