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Tata Coffee Limited, a subsidiary of Tata Group announced its Quarterly Results for Q1FY22 on Wednesday 28th July 2021. Here is the detailed analysis of the Q1FY22 results and Conference Call Highlights of the company.
Q1FY22 Result Analysis: Tata Coffee Share Price
1) Q1FY22 Results:
The Revenue of the company has decreased by 9.3% YoY from Rs. 587.5 Cr. in Q1FY21 to Rs. 533 Cr. in Q1FY22. Quarter on Quarter, the same has gone down by 9.9% from Rs. 591 Cr. in Q4FY21.
The EBITDA of the company has gone down by 18.4% from Rs. 111 Cr. in Q1FY21 to Rs. 90 Cr. in Q1FY22. Sequentially, the EBITDA of the company has decreased by 4.4% from Rs. 94 Cr. in Q4FY21.
The EBITDA margin has contracted by 200 bps YoY and 100 bps QoQ from 19% in Q1FY21 and 16% in Q4FY21 to 17% in Q1FY22.
The Profit Before Tax (PBT) of Tata Coffee Limited has decreased by a significant 20.7% from Rs. 79 Cr. in the quarter ended 30th June 2020 to Rs. 62.7 Cr. in the quarter ended 30th June 2021. PBT was Rs. 79.4 Cr. in Q4FY21, down by 21% QoQ.
The Net Profit attributable to Shareholders stands at Rs. 28.6 Cr. in the Q1FY22 down by 20.3% YoY from Rs. 36 Cr. in Q1FY21. The same has decreased by 33.4% from Rs. 43 Cr. in Q4FY21.
Also, the Net Profit Margin of the company has fallen significantly by 190 bps YoY from 10.5% in Q1FY21 to 8.5% in Q1FY22. Quarterly, the same has decreased by 110 bps from 9.7% in Q4FY21.
Tata Coffee- Q1FY22 Result
2) Segment-Wise Result: Tata Coffee Dividend
Tata Coffee Limited has 2 major segments namely Plantations and Value Added Products
i) Plantations:
Plantations include Cultivation, Manufacture, and Sale of Coffee and other plantation crops.
The Plantations revenue of the company has decreased by 17% YoY from Rs. 107.4 Cr. in Q1FY21 to Rs. 89.2 Cr. in Q1FY22. Quarter-on-Quarter, the Plantations revenue was Rs. 96.3 Cr. in Q4FY21 down by 7.7%.
The EBIT Mix of Plantation segment stood at Rs. 6.4 Cr. in Q1FY22 against Rs. 5.7 Cr. in Q1FY21 up by 11.5% YoY and down by massive 54.2% QoQ from Rs. 13.9 Cr. in Q4FY21.
ii) Value Added Products:
The revenue from Value Added Products has decreased from 7% YoY from Rs. 486 Cr. in Q1FY21 to Rs. 451.4 Cr. in Q1FY22. Quarterly, the revenue from
The EBIT Mix of the Value Added Products segment has fallen by 18.9% YoY from Rs. 87.2 Cr. in Q1FY21 to Rs. 70.7 Cr. in Q1FY22. But sequentially, this has gone up by 2.9% from Rs. 68.8 Cr. in Q4FY21.
Tata Coffee- Segment-Wise Revenue & EBIT
Management Update:
Mr. Venkatraman Srinivasan has been appointed as an Additional Director of the Company to hold office as Non-executive Independent Director.
His tenure will be 5 years from the with effect from July 28, 2021.
Earnings Call Highlights: Tata Coffee Share Price History
Business Highlights: tata coffee share price analysis
Good Performance of Instant Coffee Business in the first quarter of FY22.
Lower Profitability due to lower performance of 8’o Clock Coffee.
The Company is a Net Buyer in terms of Beans.
The management must look after rising prices post the availability of a clearer picture of the loss of Crops in Brazil, the situation of Vietnam, and other countries.
Inflation in Robust and Arabica coffee continues.
Pressure on increasing due to low out-of-consumption in near-term, but positive for a longer horizon.
3 Levers for future growth of the business: Operations Stabilization, Product Mix, and SKUs.
A large part of Europe and CIS is being targeted for Eastern Coffee Mix.
No planning of the company to add on plantations.
Solids have been quite successful. Sold on B2C Platform by Tata Consumer Product Limited, but supplied by Tata Coffee.
Vietnam Business:
The Plants in Vietnam operated at 98% capacity with excellent sales performance largely around high volumes across all the products.
Facing certain hindrances and problems due to a repeated wave of Covid-19 induced lockdowns.
Difficulty in Logistics side and rise in input cost as well.
Vietnam Operations is Profitable.
Revenue from Vietnam business is slightly higher than Q4FY21 range i.e. 8 million.
The company awaits an expansion plan in Vietnam
Plantations:
Weather is quite conducive for the company.
Tea had a decent quarter. Intent to invest in the operations.
The outlook for the crop is good.
Crop Loss in Brazil will surely have an impact on the current crop as well as crops for the future period. Still no clear picture about the situation of Brazil.
Looking at diversification on the Plantation side, commenced Avacado plantations this quarter.
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