Tata Coffee has posted a very good set of earnings for Q3FY20. Its consolidated Total Income for the quarter was higher at Rs.506 crore v/s Rs.470 crore (YoY).
Profit Before Exceptional Items and Tax for the quarter higher at Rs.53 crore v/s Rs.33 crore. Eight O' Clock Coffee (EOC) reported higher profits due to lower advertisement and promotion costs and overall cost optimization. Its plantations earnings were better due to improvement in prices and operating efficiencies. Its Vietnam operations continued to improve with healthy sales to key customers. PAT for the quarter was almost double at Rs.42 crore v/s 22 crore.
The Tata Coffee board approved the sale of up to 160,000 shares (0.06 per cent) held by the company in Tata Chemicals, through the secondary market.
Following this performance, the stock price hit a new 52-week high at Rs.107.20.