Tata Coffee posts Rs 12.88-cr loss in Q2

Tata Coffee has reported a net loss of Rs 12.88 crore on a consolidated basis for the second quarter of 2013-14 compared with a net profit of Rs 36.84 crore in the corresponding period last year.

The company attributes the loss to exceptional items which include a full provision of Rs 90.86 crore against an investment made by Consolidated Coffee Inc (CCI), the US subsidiary, in a new line of business. The net impact on consolidated net profit in this quarter for Tata Coffee after adjusting for the share attributable to other investors in CCI is Rs 46 crore.

Total income from operations is lower by 1.71 per cent to Rs 469.5 crore in Q2 against Rs 477.7crore during the corresponding period last year. Earnings per share stood at Rs 6.90 (Rs 19.72).

According to Hameed Huq, Managing Director, “The company’s focus on value addition and superior offerings for the last 12 to 15 years has being paying off. The premium offering has neutralised the fall in global prices of robusta and arabica.” “This year pepper prices has come to our rescue and contributed significantly to our profits,” he added.

Segment revenues: Coffee and other produce reported a revenue of Rs 442.2 crore (last year Rs 450.65 crore), tea Rs 16.66 crore (Rs 17.26 crore), estate supplies division Rs 11.52 crore (Rs 13.93 crore) and others Rs 1.81 crore (Rs 1.96 crore).

The company’s US subsidiary Eight O Clock Coffee’s (EOC) has recorded a total income of $94.18 million against $104.63 million in the previous year. On account of favourable commodity price and lower interest cost, EOC’s operating profit was at $17 million against $12.67 million in the corresponding period last year.

anil.u@thehindu.co.in

(This article was published in the Business Line print edition dated November 8, 2013) 

 

MD JAVED ALAM

PGDN 3rd sem