Tata Coffee has posted 12.55 per cent fall in consolidated net profit to Rs 34.47 crore in fourth quarter of the 2015-16 fiscal due to higher expenses.
According to a report in PTI: The company had reported a net profit of Rs 39.42 crore in the same quarter previous year, Tata Coffee said in its regulatory filing.
The net profit took a beating as the company’s expenses rose by 6.47 per cent to Rs 388.98 crore in the January-March quarter of the 2015-16 financial year from Rs 365.34 crore in the year-ago period.
However, the company’s total income rose slightly to Rs 456.54 crore from Rs 451.51 crore in the said period.
For the full fiscal year 2015-16 too, Tata Coffee reported a fall in consolidated net profit by 2.11 per cent to Rs 117.84 crore from Rs 120.39 crore in the previous year.
While the company’s overall income increased marginally to Rs 1,764.45 crore from Rs 1,692.95 crore, but the expenses remained higher at Rs 1,512.33 crore when compared to Rs 1,403.23 crore in the said period.
Tata Coffee said its Board has recommended a dividend of Rs 1.30 per share at face value of Rs one each aggregating to Rs 2,428 lakhs for the 2015-16 fiscal subject to approval of shareholders at the Annual General Meeting (AGM).
The dividend will be paid/ dispatched within 30 days after the AGM, the company said in the filing.
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 $220 million by borrowing funds. Today, it is part of the TGBL family of brands such as Tata Tea and Tetley.