CCL Products profit, revenue grow above 25% in Q3, margin drops

Its total revenue from operations gained 26.5 percent YoY to Rs 535.29 crore and by 5.67 percent QoQ to Rs 506.55 crore in the December quarter. The total income advanced 26.4 percent YoY to Rs 535.64 crore in the quarter.

CCL Products’ total expenses surged 33.3 percent on a YoY basis to Rs 465.1 crore from Rs 348.9 crore in the year-ago period.

The operations of the coffee company comprise two segments— coffee and coffee-related products, and food products.

The company’s consolidated gross profit margin stood at 43.7 percent from 48.2 percent in the year-ago quarter. Its EBITDA increased 9 percent YoY to Rs 101 crore from Rs 93 crore, while the EBITDA margin contracted to 19 percent from 21.9 percent in the corresponding period a year ago.

The company will also be investing $50 million to set up a 6,000 TPA freeze-dried coffee manufacturing facility in Vietnam, as part of its brownfield expansion.

Last month, CCL Products' board approved the demerger of the marketing and distribution division of coffee and FMCG products of Continental Coffee, a wholly-owned subsidiary of the company, into the parent company CCL Products (India). The demerger was aimed at enhancing the operational efficiencies of the company.

"The idea behind the demerger is to consolidate all the brands in the parent company and wanted the subsidy company to focus on expanding the kiosk model on a pan-India basis," Challa Srishant, MD, CCL Products told CNBC-TV18.

Shares of CCL Products ended 0.72 percent lower at Rs 515.70 on Wednesday.