InvestorQ : How were the Q3 results of Tata Coffee?
Ria Jain made post

How were the Q3 results of Tata Coffee?

Dia Deshpande answered.
12 months ago

Tata Coffee Q3 PAT was up by 19.5% at Rs.50 crore on a greater focus on value added products. Total revenues were up 6.25% for the Dec-20 quarter on consolidated basis at Rs.533 crore. Currently, Tata Coffee derives 85% of its revenues from value added products and only the balance 15% from plantations. Obviously, the value added products enjoy operating margin of closer to 17% as against just 10% for the plantation business.

Profit after tax (PAT) was up 19.5% at Rs.50.18 crore for the Dec-20 quarter on the strength of greater focus on the higher margin value added products. This has helped to protect margins more effectively. In addition, cost control measures initiated across the Tata Group resulted in reduction of cost of materials, finance costs and miscellaneous expenses. This pushed up the PAT margins by over 100 basis points.