Tata Coffee declared a healthy set of financial results for the first quarter of FY24. The revenues are 6 percent higher at Rs 701 crore versus Rs 662 crore in the corresponding quarter of last year, driven by higher realisations in plantation coffee and instant coffee businesses both in India and Vietnam.

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The earnings before interest, tax, depreciation and amortisation (EBITDA) is flat at Rs 117 crore, while the EBITDA margins declined to 16.7 percent versus 17.6 percent in the same quarter of last year. The net profits of Tata Coffee are 6 percent higher at Rs 48 crore compared with Rs 45 crore in the first quarter of FY23.

The plantations segment revenues rose to Rs 143 crore versus Rs 114 crore year on year. The operations of Tea plantations have improved as compared to the corresponding quarter of the previous year on higher crop and better realisations. The revenues of value added products segment rose to Rs 580 crore versus Rs 563 crore in the same quarter of last year. Green coffee turnover and profitability improved over the previous year driven by improved prices and product mix.

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

The profitability of Eight O'clock Coffee (EOC) has been impacted during

the quarter due to lower volumes and higher input costs.

Tata Coffee is primarily engaged in the production, trading and distribution of coffee and tea and allied products. The group has operations in India, USA, Europe, Africa and Vietnam. It is Asia's largest integrated coffee company, the second largest exporter of Instant Coffee and foremost producer of specialty coffee in India. The promoter of the company is Tata Consumer Products Ltd which is listed at stock exchanges.

The company produces between 8,000 - 10,000 MT of shade grown Arabica and Robusta Coffee at its 19 estates in South India.

The stock is trading 1 percent higher on NSE post declaring its first quarter results.