On May 6, CCL Products (India) captured the market’s attention as its share price soared by an impressive 16%, reaching a peak of ₹687 during trading. This remarkable surge follows the company’s outstanding financial results for the March quarter of FY25, which showcased significant revenue growth and profitability. CCL Products, renowned for its coffee production, trading, and distribution, reported its highest quarterly net profit ever, totaling ₹102 crore, up from ₹65 crore the previous year.
Strong Revenue Growth
In the latest quarter, CCL Products achieved revenue from operations of ₹836 crore, marking a considerable increase from ₹727 crore in the same quarter last year and ₹758 crore in the prior quarter. This growth demonstrates the company’s resilience despite facing challenges like rising green coffee prices and supply chain interruptions. The company also reported a 38% year-over-year increase in consolidated EBITDA, reaching ₹163 crore, with EBITDA margins expanding by 400 basis points to 20%.
- Key Financial Highlights:
- Q4FY25 Net Profit: ₹102 crore
- Revenue from Operations: ₹836 crore
- EBITDA Growth: 38% YoY
- EBITDA Margin: 20%
Strategic Expansion Plans
Despite the hurdles, analysts remain optimistic about CCL Products’ future. The company is on track with its capacity expansion initiatives across subsidiaries, focusing on increasing its range of premium and value-added products. One of the highlights is the newly inaugurated Freeze-Dried Coffee (FDC) facility in Vietnam, which has a capacity of 30,000 metric tons and is currently operating at 40–50% capacity. This facility is crucial for their global expansion strategy, particularly in key markets like the UK, US, and other strategic regions.
Future Outlook
Looking ahead, CCL Products anticipates a shift in consumer behavior due to rising coffee prices. This shift may lead to increased in-home coffee consumption, positively impacting the instant coffee sector. Recent estimates indicate that India’s domestic coffee market is expanding at a robust 10–15% year-over-year rate.
Additionally, the Board of Directors has proposed a final dividend of ₹5 per equity share for the fiscal year ending March 31, 2025, further enhancing shareholder value.
Remarkable Stock Performance
Since May 2020, when shares were priced at ₹174, CCL Products has seen its stock skyrocket by 286%, currently trading around ₹672. Over the past decade, the stock has delivered a staggering 1,244% return to investors. Notably, in September, it peaked at ₹855, fueled by the company’s solid financial performance and increasing product demand.
As CCL Products continues to adapt and thrive, it remains a noteworthy player in the coffee market, demonstrating resilience and growth potential.
