Recorded a decline of 36 percent in Q4.
Tata Coffee, a part of Tata Global Beverages India's largest coffee plantation company has reported a decline in net profit by 36 percent at Rs 16 crore for the fourth quarter which ended on 31st March.
The total income from operations grew marginally by 2.3 percent to Rs 397 crore as against Rs 388 crore a year ago. The operating profit stood at Rs 45 crore as against Rs 64 crore, a year ago, showing a year on year decline of 30 percent.
The decline in profits was due to lower sales during the quarter and exceptional loss it incurred due to divestment of stake in a US-based functional beverage company. The exceptional loss during the quarter was to the tune of Rs 8.3 crore.
Speaking on the decline, MD Kumar, Executive Director, Tata Coffee, said, "In a plantation business, it is misleading to look at performance in one quarter. The right way is to look at the full year. Unlike the manufacturing sector, we do not produce and sell in every quarter. During the fourth quarter we were busy in harvesting and the sales were minimal.”
Tata Coffee exports green coffee to countries in Europe, Asia, West Asia and North America. It produces 10000 metric tons of coffee (arabica and robusta) at its 19 estates in South India. It also produces 8400 tonnes of instant coffee.