Tata Coffee Posted A Consolidated Yearly Income Growth Of 11% For Q4, Announces Dividend Of 300%

In its media release, Tata Coffee Limited [TCL] announced its standalone, consolidated results for Q4 and year ended 31st March 2023, and also recommends dividend. It was shared through the stock exchange filing.

According to the media release, consolidated total income for the quarter was higher at Rs 736 crore compared to Rs 663 crore for the corresponding quarter of the previous year, an increase of 11%, driven by higher realisations in Eight O' Clock Coffee (EOC), Instant Coffee as well as Plantation Coffee businesses of the company.

The Instant Coffee business comprising of both India and Vietnam improved its revenues by 18% compared to corresponding quarter of previous year. The operating performance of EOC business was impacted during the quarter by lower bag volumes and higher input costs. Additionally, it was reported that Vietnam operations continue to deliver strong sales with improved profitability driven by higher sales of premium products. It has a robust healthy order pipeline.

Tata Coffee Limited posted a consolidated profit for Q4FY23, it was higher at Rs70 crore compared to Rs 64 crore in the corresponding quarter of the previous financial year.

For standalone performance the total income witnessed a growth of 14% at Rs 279 crore compared to Rs.245 crore over previous year's quarter. It was largely driven by increased revenues from Instant Coffee and Coffee Plantation businesses with better product mix on Instant Coffee and higher realisations.

Commenting on the performance, Chacko P Thomas, Managing Director, Tata Coffee Limited, said "The standalone performance of the company was good in the rather challenging macroeconomic situation with a good performance by our Instant Coffee business. Tata Coffee's Vietnam operations continue to be robust with a healthy order pipeline and the operations are running at maximum capacity.

The operations of Tea plantations continue to be impacted by lower crop due to impact of pest and diseases. The Company is working on various initiatives to improve the crop and prices through investment in factories.

Further giving guidance, Chacko said, While sales to certain geographies like Africa are still muted, we have opened alternate markets and we are hopeful of recovery in the African markets too."

For the financial year FY23 the company's total income has increased by 21% to Rs 2880 crore over last year's income of Rs 2389 crore. While the profit before tax for the year was reported at Rs 408 crore, compared to Rs 311 crore for the previous year, after considering one time profit on sale of one of its properties.

"Our Coffee Plantation performance was good, aided by improved realizations due to premiumization, though our Robusta crop was negatively impacted due to adverse weather conditions. Our Subsidiary, Eight O'clock Coffee [EOC] has registered higher revenues though the profitability for the quarter has been impacted due to higher input costs and lower volumes. Overall it has been a very satisfying performance" Chacko added to summarise the overall performance of Tata Coffee Limited.

Lastly, it was informed that the board of directors have recommended a dividend of Rs 3 per equity share (300%) for face value of Re 1 each for the year ended March 31, 2023. Last year the company had announced a dividend of Rs 2 per share (200%).

The company did not disclose any record date but stated that the dividend upon approval by the shareholders at the ensuing Annual General Meeting [AGM], will be paid within 30 days from the date of the AGM.

The stock price of Tata Coffee Limited closed at Rs 207.90 per share, 0.48% higher over previous day's closing. Its 52-week high is at Rs 251.50 per share while 52-week low is at Rs 188.60 per share. In last one year the stock price has fallen by 5.82%, but over 3 years it has surged massively by 191.79%.