CCL Products tumbles 9% on Q1 results, a day after hitting 52-week high

Shares of CCL Products fell 9 per cent in Wednesday’s trade after the Andhra Pradesh-based coffee manufacturer posted a 1.4 per cent year-on-year (YoY) fall in net profit at Rs 72.4 crore for the June quarter compared with Rs 71.40 crore in the year-ago period.

The CCL Products stock fell 9.4 per cent to hit a low of Rs 832.30 on BSE over its previous day’s closing of Rs 910.60 per share. At 10:23 am, the scrip was trading 6.62 per cent lower at Rs 850.30. The sharp decline comes a day after the stock scaled a 52-week high of Rs 935.90 on Tuesday. 

Among technical indicators, the scrip i trading lower than its 5-day, 10-, 20-, 30- and 50-day simple moving averages (SMAs), but higher than 100-day, 150-day and 200-day simple moving averages (SMAs).

For the June quarter CCL Products reported 36.5 per cent rise in revenue from the operations at Rs 1,055 crore against Rs 773.20 crore in the corresponding quarter last year.

CCL Products clocked a 22.8 per cent jump in Ebitda at Rs 159.3 crore for the June quarter, compared to Rs 129.8 crore in the same period last year. However, its Ebitda margin declined to 15.1 per cent, down from 16.8 per cent in the year-ago quarter.

The company, established in 1994, specialises in the production, trading, and distribution of coffee and coffee-related products. 

It caters to a diverse clientele, including brand owners, retailers, manufacturers, traders, repackers, and other businesses that use coffee in their operations. Its product portfolio includes spray-dried coffee powder, freeze-dried coffee, freeze-concentrated liquid coffee, roast and ground coffee, coffee beans, and premix coffee.