Tata Coffee share hits 52-week high post Q4 earnings

Shares of Tata Coffee jumped 9 per cent to hit a 52-week high of Rs 139.70 after the company reported a consolidated net profit of Rs.57 crore for Q4 FY21 compared to Rs 24 crore for the corresponding quarter of the previous year, an increase of 139 per cent.

Consolidated Total Income increased 17 per cent to Rs 612 crore for the quarter ended March 2021, compared to Rs.523 crore for the corresponding quarter of the previous year.

For FY21, the company posted a consolidated net profit of Rs 212 Crore compared to Rs 141 Crore in the previous year, up 50 per cent. Consolidated Total Income increased 15 per cent to Rs.2289 Crore compared to Rs.1987 Crore for the previous year.

"Despite challenging conditions, our overall performance has been strong. Our India Instant Coffee exports for the quarter have been higher despite logistics issues and a fresh wave of lockdowns in Europe, which are expected to ease in the near future. We have seen stable performances across key geographies. Our Vietnam operations continue to be robust and the order pipeline continues to be healthy," said Mr. Chacko P. Thomas, Managing Director, Tata Coffee Limited.

"We see a slowdown in demand in some geographies in the short-term, especially in the 'Out-of-Home' consumption due to the COVID 19 pandemic, and we are also keeping a close watch on any other possible impacts of the second wave of this pandemic. The Company continues to drive aggressive cost optimization initiatives across its operations. Our Subsidiary, Eight O'Clock Coffee [EOC] has recorded during the year improved performance driven by higher volumes, increased realisations, and favorable channel mix. Focus on innovations continues with increased momentum," he added.

The Board has recommended a dividend of Rs 1.50 per share for the year ended March 31, 2021. On a year-to-date (YTD) basis, the stock has rallied around 27 per cent. The stock has given 69 per cent returns over the last 12 months.