Mumbai: Tata Coffee Ltd reported a 45% drop in its fiscal first quarter consolidated net profit to 41.83 crore from 60.74 crore a year ago due to adverse weather conditions and an “off-cycle year" impacting the coffee and pepper production.

Off-cycle years are seasons when coffee trees have lower yields.

Consolidated net income fell 11.73% in the quarter ended 30 June to 374.52 crore from 418.46 crore a year ago.

“The lower profits in this quarter primarily reflect the lesser crop available for sale in the plantations business, on account of the lower production of coffee, tea and pepper during the previous season, which had witnessed distinctly unfavourable weather conditions," the company said in a press release.

However, the instant coffee business saw good volume growth, aligned to the company’s strategy of driving significant growth of value-added products.

Tata Global Beverages Ltd holds 57.48% stake in Tata Coffee. The shares of Tata Coffee fell 1.90% to 949.80 on Tuesday, whereas the benchmark Sensex closed 1.21% higher at 26,025.80.

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