Tata Coffee, a subsidiary of Tata Global Beverages, slipped 3.5% to Rs.87.20, a new 52-week low, mainly on the back of its tepid show for Q3FY19.
The company’s consolidated profit after tax, for the current quarter, stood at Rs. 11 crores as compared to Rs. 43 Crores of the corresponding quarter of the previous year on lower EOC profitability due to phasing impact of Advertisement and Consumer promotions. The Profit after Tax for the corresponding quarter of the previous year had a tax reversal of Rs.53 crores on account of reduction in the US Federal Tax rates.
Consolidated Total Income for the current quarter stood at Rs. 470 crores compared to Rs.381 Crores of the corresponding quarter of the previous year, on account of higher sales recorded by Eight O' Clock (EOC), held through the Company's overseas subsidiary, Consolidated Coffee Inc. EOC has recorded a Total Income of $ 41.56 Million for the current quarter compared to $ 32.55 Million of the corresponding quarter of the previous year.
The company stated, "Instant Coffee business has recorded the highest volume of sales compared to past several quarters. The offtakes to Africa and European geographies continue to be strong and our focus on new customer acquisition is paying strong dividend. Profitability of the Instant Coffee business has been impacted due to current competitive pressures and adverse foreign exchange rates. While the plantation harvesting progress is satisfactory, the terminals continue to be depressed. The company continues to focus on customer centricity, premiumisation and differentiation as its core themes and these are helping tide over some of the current competitive pressures and subdued terminals environment".
The 5000 MT freeze dried plant at Vietnam is nearing completion and will get commissioned in the current quarter.