Tata Coffee Q3 net profit rises nearly 21% to Rs26 crore

Tata Coffee's consolidated profits rose 20.78 per cent to Rs25.98 crore for the fiscal third-quarter ended 31 December 2012, lifted by rising volumes of instant coffee sales and a strong dollar.

Earnings per share (EPS) for the quarter stood at Rs13.92 compared with Rs11.51 recorded in corresponding quarter of the previous financial year.

Total income from operations for the third quarter ended 31 December 2012 stood at Rs152.12 crore, an increase of 23 per cent year-on-year.

The company reported equally impressive growth during the nine months ended 31 December 2012 as well with total income from operations of Rs473.91 crore, an increase of 26 per cent compared with the previous year period.

Profits from operations (before other income, finance costs and exceptional items) for the third quarter and the nine months stood at Rs37.15 crore and Rs108.94 crore, respectively - an impressive growth of 46 per cent and 48 per cent, respectively, compared to the operating profits of the corresponding periods of the previous financial year.

Segment-wise revenue for the nine-month period was - coffee and other produce Rs395.91 crore, tea Rs16.10 crore, estate supplies division Rs7.55 crore, others Rs0.91 crore and un-allocated income Rs0.08 crore.

The company said it is providing special retirement benefits in respect of retired directors on the basis of contractual obligations. ''In the current quarter, the company has provided for such benefits, both for its continuing and retired whole-time directors on the basis of AS-15 – employee benefits,'' company said in filings with exchanges.

''Due to this revised policy, the incremental liability of Rs9.02 crore is charged as an exceptional item in the current quarter and profit of the current quarter is lower by an equivalent amount,'' the release added.