CCL Products (India) Ltd delivered impressive financial results on Tuesday, exceeding analysts’ expectations with a notable 62% surge in quarterly profit. The company’s exceptional performance was fueled by the robust sales of its instant coffee, which experienced a significant uptick. This surge in demand for their product played a key role in driving the substantial growth in profitability, highlighting CCL Products’ strong market presence and successful business strategy.
In the quarter ending on March 31, the consolidated net profit increased to 852.9 million rupees ($10.43 million), surpassing the previous year’s figure of 527 million rupees. Refinitiv IBES data indicates that analysts had, on average, anticipated a profit of 636.9 million rupees.
The company, with its extensive coffee export operations spanning across more than 90 countries, achieved a substantial growth in revenue during the quarter compared to the previous year. The reported figures indicate an impressive 38.2% increase, with total earnings reaching 5.20 billion rupees.
According to analysts at CD Equisearch, the increase in capacity at CCL’s Vietnam facility, along with stronger coffee prices throughout the previous fiscal year, contributed to a rise in volume for spray-dried coffee during the March quarter. CCL, which also has manufacturing plants in India and Switzerland, has been able to leverage these factors for its growth.
Rival Tata Coffee made headlines last month with a remarkable 20% rise in fourth-quarter profit, shedding light on the escalating demand for the beverage.
Prior to the release of its financial results, the company’s stock, which serves clients such as Reliance, startup Blue Tokai, and Israel-based Strauss Group, experienced a decline of 2.3% at the close of the market.
