CCL PRODUCTS

Poor Q1 numbers

CCL Products did not do too well in Q1FY18. Lower revenue and increased costs dented the net profit – it came in at Rs.27 crore, down 32% (YoY).

Revenue for the quarter was lower by 2.4% at Rs.245 crore while EBITDA fell 26% to Rs.46 crore – apart from lower topline, a higher outgo on employee cost and raw material dented the profit. Seasonally too, H2 is always the best, post monsoon is when earnings are robust – so we can lay some of the blame on seasonality too!

The largest exporter of instance coffee from India, under the brand name of ‘Continental’, the company is working full throttle. Its Vietnam unit should be working at full capacity in current fiscal. Its capacity in India is currently 20,000 tpa and it is putting up a 5000 tpa plant in Chittoor in Andhra Pradesh, expected to go on stream by H1FY19. It is also putting up a subsidiary which will manage the entire operations in Andhra Pradesh and investing Rs.30 crore in a phased manner in one more of its subsidiaries.