Tata Coffee Limited

Chacko Thomas

MANAGING DIRECTOR AND CEO, TATA COFFEE LIMITED

K. Venkataramanan

EXECUTIVE DIRECTOR FINANCE AND CFO, TATA COFFEE LIMITED

Aniruddha Joshi

ICICI SECURITIES

30%

irstly, by giving you a snapshot of the standalone performance revenue from operations went up by 30% compared to the same quarter of the previous year. That is INR 230 crore as opposed to INR 179 cro

INR 230 crore

revenue from operations went up by 30% compared to the same quarter of the previous year. That is INR 230 crore as opposed to INR 179 crore. The standalone PAT was also up by 7% up to INR 30 crore for this quar

INR 179 crore

up by 30% compared to the same quarter of the previous year. That is INR 230 crore as opposed to INR 179 crore. The standalone PAT was also up by 7% up to INR 30 crore for this quarter. These numbers were lar

7%

revious year. That is INR 230 crore as opposed to INR 179 crore. The standalone PAT was also up by 7% up to INR 30 crore for this quarter. These numbers were largely possible on account of the very g

INR 30 crore

ear. That is INR 230 crore as opposed to INR 179 crore. The standalone PAT was also up by 7% up to INR 30 crore for this quarter. These numbers were largely possible on account of the very good gross margins t

INR 662 crore

ally, I move on to the consolidated results. For quarter one, the revenue from operations has been INR 662 crore compared to INR 532 crore, increase of 24%. Again, credit goes to the good performance of Eight O'

INR 532 crore

solidated results. For quarter one, the revenue from operations has been INR 662 crore compared to INR 532 crore, increase of 24%. Again, credit goes to the good performance of Eight O'Clock, both in sales and t

24%

ter one, the revenue from operations has been INR 662 crore compared to INR 532 crore, increase of 24%. Again, credit goes to the good performance of Eight O'Clock, both in sales and the innovative pro

INR 65 crore

. And of course the contributions from the standalone entity also. The consolidated net profit is INR 65 crore, which is also a substantial growth of 41% year on year. Quarter one has been a good quarter for T

41%

ne entity also. The consolidated net profit is INR 65 crore, which is also a substantial growth of 41% year on year. Quarter one has been a good quarter for Tata Coffee as I mentioned, and we move ahea

INR 36 crore

and fuels. So within the profit after tax for the standalone is at INR 30 crore and before tax at INR 36 crore, which are higher than similar order for the previous year. With respect to the consolidated, as w

42%

he business have performed well, which has resulted in the consolidated net profit being higher by 42%. The consequently the EPS of the consultated entities is also higher at INR 2.4 compared to INR 1.

“On the other income line, there is a phasing in respect of dividends from Eight O'Clock coffee, but overall for the year, we don't expect any change.”

“The first is related to our pepper business and the second one will be related to Vietnam.”

“So all in all, I think the pepper production, going forward is only poised to increase, albeit the fact that there is – there is a level of maturity that will come in, in terms of numbers every year going forward.”

“The total investments for the project around 60 odd million.”

“After that, there has not been know any infusion for the purpose of the project itself, though there have been some infusions required for the local, for some operating expenses and all in the initial phase.”

“But yes, of course there will be geographies those geographies Tata Coffee Limited August 04, 2022”

“So is there any differentiated strategy going forward on product, be product wise or how much is it like just reach wise or distribution wise with Tata consumer already has already penetrated.”

“what is your sense on coffee prices going forward six months down the line, three months down the line, so on.”

“I do not expect coffee prices to now, at least for the next three months, do any major changes, primarily because whatever weather events that could have possibly happened in any of the locations the period for that has passed.”

“Going forward, at least for the next three to four months, I don't see any major variants, maybe a couple of cents here and there up and down.”

K. Venkataramanan

11

Chacko Thomas

9

Vignesh Iyer

5

Pranjal Garg

3

Moderator

3

Sameer Madan

2

Yash Bandari

2

Aniruddha Joshi

2

Lokesh Maru

1

Chacko Thomas

Ladies and gentlemen, good day and welcome to the Q1 FY2023 earnings conference call of Tata Coffee Limited, 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 an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi. Thank you and over to you Sir! Yes. Thanks Seema. On behalf of ICICI Securities, we welcome you all to Q1 FY2023 Results Conference Call of Tata Coffee Limited. We have with us Senior Management represented by 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 give us views on the quarterly performance and then we will open the

Chacko Thomas

So thank you, Mr. Sameer. On the pepper business, actually what we have done is over the last four or five years very extensively replanted and rejuvenated pepper vines, and these pepper vines as you rightly said are in the ballpark numbers of anything between to 18 to 18.5 lakhs vines as we speak. Only of this, only about 30% is in the actual stage of maturity. Every year, we have closer to 5% to 10%, which come into maturity, which as you rightly said, I'm not putting numbers to it because it's going to be very, very difficult because, you know pepper planted in Arabica with the higher shade would have a lesser yield and robust with lesser shade will have high et cetera. So I'm just giving you a ballpark number. So, when you look at what and you have to also understand that pepper also has an issue of stability, as well as there could be some fungus diseases that it could get impacted by. So every year you will have a certain number that actually gets removed. Otherwise, you know, th

Sameer Madan

Absolutely, sir, very, very helpful and pointed answers. Thank you very much for that. My second question is related to our Vietnam subsidiary. I would like to understand how much has been our total investment into Vietnam so far. And how has the revenue been doing in the last quarter and the last financial year?

K. Venkataramanan

The total investments for the project around 60 odd million. So roughly around it was INR 350 crore to INR 375 crore. After that, there has not been know any infusion for the purpose of the project itself, though there have been some infusions required for the local, for some operating expenses and all in the initial phase. So that's, what on Vietnam. On the turnover, we don't want to disclose numbers as such. We are operating at around 90% to 95% capacity. And it has been kind of, you know, it's already broken even we are making money there. So there's no issues around that. And quarter on quarter, the performance is improving. So, of course, there have been some glips because of the ocean freight increase and all that, which are yet to get normalized. But as we see, we have definitely, as we earlier also mentioned, we have a pilot plant in Vietnam, it is a state of art technology. So that way we have been able to you know generate good prices there. And we are also into some of the,

K. Venkataramanan

No, right now, there's no need for need for CAPEX. We are setting up some liquid extract capacities there, which will come into stream during later part of the year. So other than that, there's that no other immediate plans of expanding the capacity in Vietnam as of now. Tata Coffee Limited August 04, 2022

K. Venkataramanan

Yes, we continue to evaluate I think you have to watch the space for some time, but we continue to evaluate. Even our India plants are all fully saturated, we have two plants in India which are fully saturated and we are looking at, and also just to mention to you, we pack Tata Coffee Grand, which is sold and marketed and sold through Tata Consumer, which is also has picked up traction. And that's also continuing to do well in the marketplace. So all these are levers for growth as we see.