Shares of Tata Coffee Limited closed today at a price of Rs 207.50 showing an upside of around 0.4 percent in comparison to the previous closing price of Rs 206.80. In the last 1 month period, the stock has gained about 2 percent ranging from Rs 203 to the current price levels.
The company, today, released its annual results for FY22-23 after market hours through a regulatory filing over the exchange. The financials show mixed results with revenues from operations reducing but net profits showing good improvement.
Apart from stating the financial results, the company’s Board also recommended a dividend of Rs 3 per equity share.
As mentioned above, revenues from operations got reduced from Rs 747 crores in Q3 to Rs 723 crores in Q4. On a contrasting note, the net profits of the company took an upward shift from Rs 38.4 crores in Q3 to Rs 70 crores in Q4.
Tata Coffee Limited is an India-based coffee plantation company that is primarily engaged in the trading, production, and distribution of tea, coffee, and other allied products. Business segments of the company are the ‘Plantation’ and ‘Value Added Products’ segments.
Generating the majority of revenue from the USA, the company’s products include Pepper, Green Beans, Tea, and instant coffee. The business operations are mainly carried out domestically but also have a presence in the USA, Commonwealth of Independent States (CIS) countries, and other parts across the globe.
The profitability metrics of the company exhibit a positive scenario regarding the operations with ROE and ROCE being on a rise. The ROE numbers moved from 16.12 percent in FY20-21 to 16.16 percent in FY21-22. ROCE took a shift from 13.5 percent during FY20-21 to 14.13 percent in FY21-22.
In addition to the above, the net profit margins of the company have increased from 9.38 percent in FY20-21 to 9.88 percent in FY21-22. The debt-to-equity ratio has also been showing reductions over the past 3 financial years with the most recent shift being from 0.84 in FY20-21 to 0.67 in FY21-22.
As per the data available for the quarter ending December 2022, promoters hold a constant 57.48 percent stake in the company. FIIs, on the other hand, have consistently increased their stake in the past 5 quarters, the most recent change being from 2.04 percent in Q2 to 2.69 percent in Q3.
Written by Amit Madnani
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