Tata Coffee today reported a consolidated net loss of Rs. 12.88 crore for the second quarter ended on September 30 due to provisions made for diminishing value of its investment in US.
The company had clocked a net profit of Rs. 36.84 crore in the July-September quarter of last fiscal, 2012-13.
Total consolidated income during the July-September quarter of 2013-14 fiscal decreased to Rs. 470 crore, compared to Rs. 478 crore in the year-ago period, the company said in a BSE filing.
The company moved into the red as its subsidiary, Consolidated Coffee Inc (CCI), invested $22 million, against which the company made provision of Rs. 90.86 crore.
«CCI, the US subsidiary of the company has invested in USA, a sum of $220 million in a coffee business and $22 million in new line of business.
«It has identified the latter investment for a full provision, as there is another than temporary diminution in
its value,» the company said.
«Exceptional items in the current period include a full provision of Rs. 11,349 lakhs and net provision of Rs. 9,086 lakhs has been made after adjusting forex fluctuations reserve of Rs. 2,263 lakhs created against the investment,» the company added.
Tata Coffee, subsidiary of Tata Global Beverages is Asia’s largest coffee plantation company and the 3rd largestexporter of instant coffee in the country.
Tata Coffee executive director (Finance) M Deepak Kumar said, «The Company’s focus on value addition and superior offerings has neutralised to a great extent the fall in both the London-Robusta and New York-Arabica terminals. The pepper operations have generated a substantial return. The company continues to focus on developmental initiatives in arabica, robusta, tea and pepper to enhance sustainability of operations.»
The company produces more than 10,000 tonnes of shade grown arabica and robusta coffees at its 19 estates in South India and its two instant coffee manufacturing facilities have a combined installed capacity of 8,400 metric tonnes.
It exports green coffee to countries in Europe, Asia, Middle East and North America.
Source: profit.ndtv.com/news/corporates/article-tata-coffee-reports-net-loss-of-rs-13-crore-371600
Tata Coffee reports net loss of Rs. 13 crore
