Tata Coffee today reported a 59 per cent drop in consolidated net profit at Rs 19.13 crore for the fourth quarter ended on March 31, as coffee sales were impacted after changes in US market.
Tata Coffee Ltd had clocked a net profit of Rs 46.66 crore in the same period in financial year 2012-13.
However, total income during January-March quarter of 2013-14 marginally rose to Rs 397.28 crore from Rs 387.83 crore in same quarter in year 2012-13, the company said in a statement.
Meanwhile, the company reported a 34 per cent decline in net profit for the entire 2013-14 fiscal at Rs 103.59 crore as compared to Rs 158.12 crore in 2012-13.
Total income during the year 2013-14 declined to Rs 1,677.47 crore from Rs 1,697.35 crore in 2012-13 fiscal year.
Speaking on the results, Tata Coffee Executive Director (Finance) M Deepak Kumar said: "The growth in single serve coffee business has impacted the sale of coffee in conventional bags and cans across USA and this change is also reflected in Eight O'Clock Coffee."
However, the strategic move to enter this new segment (single serve) has substantially benefited the company with a high volume of single serve sales and income being achieved, Kumar added.
Tata Coffee, a subsidiary of Tata Global Beverages Ltd (TGBL) and India's third largest exporter of instant coffee, had acquired the Eight O' Clock (EOC) Coffee Company in 2006 for USD 220 million by borrowing funds. Today, it is part of the TGBL family of brands like Tata Tea and Tetley.
For the entire 2013-14 fiscal, the operating profit of EOC came down to USD 25.89 million from USD 29.85 million in 2012-13.
The company produces more than 10,000 tonnes of shade grown Arabica and Robusta coffees at its 19 estates in South India. Its two instant coffee manufacturing facilities have a combined installed capacity of 8400 tonnes.
It exports green coffee to countries in Europe, Asia, Middle East and North America.
Shares of the company were today down 4.14 per cent at Rs 975.90 apiece on BSE today in the late afternoon trade.