Revenue from operations stood at Rs 746.66 crore in quarter ended 31 December 2022, registering a growth of 19.26% as against Rs 626.07 crore posted in the same period a year ago.

The Group's consolidated net profit slumped 44.72% to Rs 38.40 crore in Q3 FY23 from Rs 69.46 crore posted in the corresponding quarter previous year. The decline was mainly due to lower profits of Eight'O Clock Coffee.

Profit before exceptional items dropped 37.36% to Rs 57.73 crore in Q3 FY23 from Rs 92.16 crore reported in Q3 FY22.

Exceptional items stood at Rs 0.65 crore in Q3 FY23. It represents certain restructuring costs relating to the Group's overseas subsidiaries.

Consolidated total income rose 19.14% year on year to Rs 754.76 crore in quarter ended 31 December 2022. The growth in the total income was mainly driven by higher realisations in EOC and Instant Coffee businesses of the company.

The improved price realisations driven by superior product mix in Instant Coffee business both in India and Vietnam has aided the company's quarter performance. The operating performance of Eight'O Clock business was impacted during the quarter by higher input and other costs which are expected to ease over coming quarters, said the company.

Tata Coffee's Vietnam operations continue to deliver robust sales with improved profitability driven by higher sales of premium products. It has a healthy order pipeline.

On a standalone basis, the company's net profit declined 6.83% to Rs 26.61 crore despite of 23.86% jump in revenue to Rs 273.04 crore in Q3 FY23 over Q3 FY22.

Total income in Q3 FY23 stood at Rs 295.46 crore, registering a growth of 23.44% YoY on the back of increased revenues from Instant Coffee and Plantation businesses (mainly Tea). The operations of Tea plantations continue to be impacted by lower crop, though the realization has improved compared to the previous year. The above total income includes dividend received from overseas subsidiary of Rs 14 crore.

Instant Coffee business in India registered higher turnover of around 26% driven by higher realisations and better product mix, though sales to certain geographies like Africa continue to be impacted by lower demand. Instant Coffee profitability for Q3 FY23 was higher on account of favourable sales mix despite volumes being flat.

Chacko P Thomas, managing director of Tata Coffee, said The performance of our Instant Coffee business continues to be robust. Tata Coffee's Vietnam operations continue to be strong with a healthy order pipe line. There is however continuing inflationary pressure on costs and impact on Instant Coffee sales in some geographies. Our f'lantation performance is subdued due to declining coffee prices, though the outlook for crop is good. Our Subsidiary, Eight O'clock Coffee [EOC] has registered higher revenues though the profitability for the quarter has been impacted due to higher costs.

Tata Coffee is a subsidiary of Tata Consumer Products, formerly known as, Tata Global Beverages. It is Asia's largest integrated coffee Company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India.

Shares of Tata Coffee were down 0.05% to Rs 215.20 on the BSE.

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