Tata Coffee reported fall of 7.51% in top line sales for the Sep-20 quarter at Rs543.43cr. The operating profits for the quarter ended Sep-20 was up 14.28% at Rs68.04cr while net profits were up 5.66% at Rs42.40cr.
This had an overall impact on the margins of Tata Coffee. For the Sep-20 quarter, the operating profit margins or OPM was up 239 bps at 12.52% on the back of better control on costs. However, the net profit margins or NPM for the quarter was also higher but by 162 basis points at 7.80% on a yoy basis.
Financial highlights for Sep-20 compared yoy and sequentially
|
Particulars |
Sep-20 Quarter |
Growth (yoy) |
Growth (qoq) |
|
Total Revenues |
Rs543.43cr |
-7.51% |
+12.93% |
|
Operating Profit |
Rs68.04cr |
+14.28% |
-24.14% |
|
Net Profits |
Rs42.40cr |
+5.66% |
-30.83% |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs1.27 |
Rs1.37 |
Rs1.92 |
|
Operating Margins |
12.52% |
10.13% |
18.64% |
|
Net Profit Margin |
7.80% |
6.18% |
12.74% |
Key takeaways from the Sep-20 quarter results
-
Tata Coffee put up a much better show in the Jun-20 quarter in terms of top line as a result of which the profits are down on a sequential basis for the company. The COVID impact on the company was minimal.
-
In terms of segmental revenues, the core plantations generate just about 20% of the revenues with value added products accounting for the balance 80% of the revenues. This is likely to be positive for the profitability of the product mix.
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