Share prices of Tata Coffee on Tuesday dipped as low as 7.2 percent to Rs 123.70 on the NSE (National Stock Exchange) from its previous close of Rs 127.95, after it reported a steep drop of 63 percent in its year on year (YoY) consolidated net profit to Rs 22.4 crore in the fourth quarter (Q4) ended March 2018. For the January-March 2017 quarter, it had reported a profit of Rs 59.8 crore.
Its total income for the quarter under review declined from Rs 21.8 crore to Rs 20.6 crore in the same period of the previous fiscal. The drop in revenue could be due to lower than the estimated output of tea and coffee coupled with lower rupee realizations.
There was also a decrease in the volume in the production of many of its products like instant coffee due to various factors including unseasonal rain.
In a separate filing, the company also said that the re-appointment of Chacko Purackal Thomas as Executive Director and Deputy CEO of the company has been approved by its Board of Directors for a period of 3 years.
"Based on the recommendation of the nomination and remuneration committee, the Board of Directors approved the re-appointment of Chacko Purackal Thomas as Executive Director & Deputy CEO of the company for a period of 3 years with effect from August 4, 2018," it said.
Tata Coffee, owned by Tata Global Beverages (a subsidiary of Tata Group) is a major producer of specialty coffee in India. It is Asia's largest integrated coffee company, the second largest exporter of instant coffee. It also runs an equal joint venture Tata Starbucks Limited for which Tata Coffee entered into an agreement with Starbucks to supply coffee beans to outlets of the cafe chain across India.