Tata Coffee

Call it the base effect of whatever but YoY, the company has shown a very good consolidated performance for Q2FY13.On a net sales of Rs.470.52 crore, which was up 15%, the company’s net profit was up by a whopping 110% at Rs.37 crore. Sequentially, the numbers are a good but not as trailblazing as YoY, with net sales rising 15% and net profit up 31%. A every good growth in its instant coffee segment and turnaround in its global subsidiary Eight O' Clock Coffee. The company has stated that it attributed this good performance to superior operating efficiencies in production and coffee procurement. 

Coffee remains its bread winner, contributing 94% to its topline. Revenue from coffee on a YoY grew 14% and Qoq, it was up 16%. Tea, rose 29% on a YoY and just 5% on a QoQ and it had a loss at the EBIT level. Its Estate Supplies Division revenue was up 40% sequentially and 17% on a YoY. Looking ahead, unless its US subsidiary, Eight O'Clock Coffee does not improve further, the company’s performance will not show any major jumps. So that will be the real kicker for the performance going forward, but overall, the view remains positive Tata Coffee.