Tata Coffee Limited

Chacko Purackal Thomas

MANAGING DIRECTOR & CEO,

K. Venkataramanan

EXECUTIVE DIRECTOR, FINANCE AND CFO,

Aniruddha Joshi

ICICI SECURITIES

4%

, first for the quarter and first on standalone numbers. Standalone revenue from operations was up 4% as compared to the same quarter of the previous year, that is INR 227 crore as opposed to INR 218

INR 227 crore

ne revenue from operations was up 4% as compared to the same quarter of the previous year, that is INR 227 crore as opposed to INR 218 crore in the previous quarter, while the standalone profit after tax is INR

INR 218 crore

s up 4% as compared to the same quarter of the previous year, that is INR 227 crore as opposed to INR 218 crore in the previous quarter, while the standalone profit after tax is INR 27 crore as against INR 40 c

INR 27 crore

rore as opposed to INR 218 crore in the previous quarter, while the standalone profit after tax is INR 27 crore as against INR 40 crore of the corresponding quarter of the previous year. The operating profit f

INR 40 crore

18 crore in the previous quarter, while the standalone profit after tax is INR 27 crore as against INR 40 crore of the corresponding quarter of the previous year. The operating profit for the current quarter i

INR 13 crore

ious year, on last year's PAT figures also included profit from sales of an asset of close to over INR 13 crore. On the highlights of the business specifically from the instant coffee side, both India and Viet

11%

ciency improvements in the tea business and we do see this really moving up further. increase of 11% driven primarily by Now moving onto the consolidated results, the consolidated revenue from oper

INR 656 crore

moving onto the consolidated results, the consolidated revenue from operations for quarter four is INR 656 crore as compared to INR improved 591 crore, an performance at EOC and our other value-added business.

591 crore

nsolidated revenue from operations for quarter four is INR 656 crore as compared to INR improved 591 crore, an performance at EOC and our other value-added business. The consolidated profit after tax is c

12%

rformance at EOC and our other value-added business. The consolidated profit after tax is close of 12% compared to the fiscal period of last year. We are also happy that, you know, on commitment towar

INR 79 crore

een a good year, in terms of, you know, for the quarter, with the profit before tax going up from INR 79 crore to INR 86 crore during the quarter and Eight O Clock also had a good quarter and a good year in t

INR 86 crore

, in terms of, you know, for the quarter, with the profit before tax going up from INR 79 crore to INR 86 crore during the quarter and Eight O Clock also had a good quarter and a good year in terms of performa

“As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.”

“Sales from Vietnam has seen an uptake for the year substantially higher than the previous year and I think our efforts in increasing more and more premium and, decaffeinated products have actually indicated that this a route that we would be taking going forward because we have had good experience with that.”

“We also managed to drive down costs and I think this is one of the other pillars on which we hope to drive performance in this coming year.”

“We continue to fully utilize our capacities; on cost we would be extremely frugal and most importantly our order books are pretty much full going forward.”

“However, on Tea Operations, the performance was affected due to the weather conditions and some of the other issues that we are facing with the pests, but going forward we have invested in terms of some of the infrastructure and productivity and efficiency improvements in the tea business and we do see this really moving up further.”

“any insights or any outlook for the next fiscal, if there are any discussions going on on expanding the capacity, I know, the capacity has been quite recent in Vietnam, but anything more that we are expecting or expanding in this business?”

“No, we don't anticipate, but obviously all these approvals have to come, so we don’t want to second guess on all these, obviously it's a long process, which would take its own time.”

“Sir, can you please talk about the performance of your pepper business during the quarter and your view going forward?”

“Going forward, you know, the idea is to with the investments that we have actually made in the last four or five years, the expectations are that the pepper crop would substantially scale up.”

“And we plan to grow faster going forward as well.”

Chacko Thomas

31

Moderator

14

Lokesh Maru

13

Pranjal Garg

13

Aniruddha Joshi

8

Amit Purohit

7

Sameer Gupta

7

Vignesh Iyer

4

Miraj Shah

3

K. Venkataramanan

2

Chacko Thomas

Good morning, ladies and gentlemen, welcome to the Tata Coffee Q4 FY 22 results Conference Call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the Conference Call, please signal the operator by pressing “*”, then “0” on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities. Thank you and over to you, sir. Yes, thanks, Lizann. On behalf of ICICI Securities we welcome you all to Q4 FY 22 results Conference Call of Tata Coffee Limited. We have with us Mr. Chacko Thomas, Managing Director and CEO and Mr. K. Venkataramanan, Executive Director, Finance and CFO. Now I hand over the call to the management for their initial comments and then we will open the floor for Q&A. Thanks and over to you, sir. Thanks, Aniruddha, good m

Aniruddha Joshi

Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press “*” and “1” on your touch tone telephone. If you wish to remove yourself from the question queue, you may press “*” and “2”. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aniruddha Joshi from ICICI Securities, please go ahead. Yes, so before the question queue assembles, sir, just one, two questions from my side, how do you see basically the coffee prices panning out? So, we had a bumper inflation, so now what is the stance on the coffee prices that you say for FY 23, that is one question and secondly, we have seen that the cost of the consumption has going up because of the steep inflation in milk prices also. So for a consumer drinking a cup of coffee is becoming slightly expensive with coffee price inflat

Chacko Thomas

On the coffee prices as things stand, yes, there have been a little bit of softening of prices, but, would it go back to, you know, 2019-2020 prices? I certainly feel no. I think the prices will continue to be favorable while may not be at the level at which they're at the moment going down six months down the line but what you must remember here is that at least on Tata Coffee’s front, we are pretty well leveraged in case of, you know, forwards, etc. so the impact on us would not be as much and definitely there is a good chance that this boom that you see of coffee prices not as high or rising as much it would definitely continue at least for the next six months and then thereafter, you will have the new crop that'll come from Brazil and Vietnam, etc., that the impact would be, you know, you'll have to wait and see what happens there, but next six months, I don't see a problem.

Lokesh Maru

Thank you. A reminder to the participants anyone wishing to ask a question may please press “*” and ”1”, the next question is from the line of Lokesh Maru from Nippon India, AMC, please go ahead. Thank you for the opportunity. Congratulations, sir on the amazing set of results. I have a few basic questions, like one Aniruddha already highlighted about coffee prices. So, it seems that until new crops come in, until the next six months, coffee prices are here to stay in that 200 plus range, right?

Lokesh Maru

And on top of that, like you have mentioned order books have been quite healthy and Vietnam had been operating at a peak capacity, so

Chacko Thomas

any insights or any outlook for the next fiscal, if there are any discussions going on on expanding the capacity, I know, the capacity has been quite recent in Vietnam, but anything more that we are expecting or expanding in this business? See on the Vietnam front, there are some levers to be, you know, sort of pulled there in terms of extraction of margins, etc. which is underway. So we are already operating at around 97% capacity and in the current situation we want to look at improving and extracting the margins. On India front, yes, as of now, we are not, you know, having any firm plans, but obviously we are looking at opportunities whereby any kind of bottlenecking of capacities, debottlenecking, some kind of expansion, wherever in terms of increased improvement in capacities, wherever possible that are some things what we are looking at that.