Bangalore/Kolkata, July 22 (IBNS) : Tata Coffee on Tuesday announced its results for the quarter that ended June 30 where it reported a net profit of Rs. 30.31 crores on a consolidated basis for the first quarter of 2014-15, compared with a net profit of Rs. 40.38 crores in the corresponding period last year.
The companys total income from operations is lower by 11% at Rs. 374.52 crores during the first quarter of 2014-15, against Rs. 418.46 crores during the corresponding period last year. Earnings per share stood at Rs. 16.23. The lower profits in this quarter primarily reflect the lesser crop available for sale in the plantations business, on account of the lower production of coffee, tea and pepper during the previous season, which had witnessed distinctly unfavourable weather conditions. However, the instant coffee business saw good volume growth, aligned to the Companys strategy of driving significant growth of value-added products, Tata Coffee said in a statement. The instant coffee segment reported good topline growth, with revenues standing at Rs. 86 crores for the quarter, compared to Rs. 76 crores for the corresponding period last year. This growth was driven primarily by higher sales of instant coffee to new geographies. During the quarter, the company exported 1,836 MT of instant coffee as compared to 1,535 MT during the corresponding period last year, registering a handsome volume growth of 20%. Commenting on the performance, Hameed Huq, Managing Director, Tata Coffee, said, The Companys focus on value-addition and superior offerings is producing good results, as demonstrated by the growth in sales of instant coffee. Our premium value propositions have allowed us to gradually move away from commodity price volatilities. The global instant coffee market is showing steady recovery after a slow-down in some markets. The new capacities we have put in place will help us strongly leverage such growth.