Coffee Day Enterprises reports multi-fold jump in net profit at Rs 1,567 cr thanks to Mindtree disinvestment

The company, which runs Cafe Coffee Day chains, had reported a profit of Rs 21.06 crore for April-June period a year ago

Press Trust of India November 14, 2019 07:15:37 IST
Coffee Day Enterprises reports multi-fold jump in net profit at Rs 1,567 cr thanks to Mindtree disinvestment
  • The company, which runs Cafe Coffee Day chains, had reported a profit of Rs 21.06 crore for April-June period a year ago

  • Coffee Day Enterprises said there would be a delay in the announcement of results for the second quarter ended September

  • In a separate filing, CDEL informed that its board has accepted the resignation of Sanjay Nayar, who had resigned vide his letter dated 11 November 2019.

New Delhi: Coffee Day Enterprises on Wednesday reported a multi-fold jump in consolidated net profit at Rs 1,567.20 crore for the June quarter, helped by an exceptional gain from stake sale in IT firm Mindtree.

The company, which runs Cafe Coffee Day chains, had reported a profit of Rs 21.06 crore for April-June period a year ago, Coffee Day Enterprises Ltd (CDEL) said in a regulatory filing.

Coffee Day Enterprises also said there would be a delay in the announcement of results for the second quarter ended September.

Revenue from operations was down at Rs 941.69 crore during the period under review as against Rs 966.04 crore in the same period of the previous fiscal.

"EBITDA for the period Q1FY'20 includes exceptional gain amounting to Rs 1,777 crore and PAT for the period Q1FY'20 includes exceptional gain amounting to Rs 1,659 crore primarily on account of sale of equity stake held in Mindtree," the company said.

Total expenses were at Rs 1,144.60 crore during the period as against Rs 981.16 crore earlier, up 16.65 percent.

Revenue from coffee and related business was at Rs 459.68 crore in the June quarter, down 2.57 percent as against Rs 471.85 crore in the year-ago period.

Revenue from integrated multimodal logistics segment was at Rs 362.07 crore during the period as against Rs 323.51 crore in June quarter 2018.

Coffee Day Enterprises reports multifold jump in net profit at Rs 1567 cr thanks to Mindtree disinvestment

Representational image. Reuters

Financial services' revenue was at Rs 67.18 crore, down 47.71 percent from Rs 128.48 crore in the year-ago period.

Revenue from the leasing of commercial office space was at Rs 45 crore as against Rs 36.75 crore earlier.

Besides, CDEL said it is awaiting the report from Ashok Kumar Malhotra, retired DIG of CBI, who was appointed to investigate into the circumstances leading to statements made in a letter by late V G Siddhartha dated 27 July 2019 and to scrutinize the books of accounts of the company and its subsidiary.

"The said assignment is under progress and is likely to take few more weeks for completion," said CDEL.

"Hence, there will be a delay in submission of unaudited financial results (with the limited review by the auditor) as stipulated under Regulation 33 of Listing Regulations for the quarter ended 30 June 2019 and 2nd quarter, half-year ended 30 September 2019 within the prescribed statutory timelines."

Malhotra is looking into the letter purportedly written by Siddhartha, days before he went missing in July.

The company has submitted unaudited management compiled standalone and consolidated profit and loss account and segment-wise performance for the June quarter along with the financial highlights.

In August, CDEL had said it was postponing its earnings announcement for the June quarter due to certain unavoidable circumstances.

Moreover, CDEL said the completion of the transaction to transfer the assets of Global Village Tech Park in Bengaluru to Blackstone and Salarpuria Sattva Group at an enterprise value of Rs 2,700 crore is subject to various approvals, including regulatory.

The company's board had approved the deal on 14 August 2019 and the company has executed definitive agreements with entities concerned.

CDEL has also authorised Malavika Hegde, Director or Chief Financial Officer of Coffee Day Global Ltd to finalise the appointment of required agencies for conducting financial, legal, commercial due diligence towards disinvestment of a stake in the company.

In a separate filing, CDEL informed that its board has accepted the resignation of Sanjay Nayar, who had resigned vide his letter dated 11 November 2019.

CDEL has been trying to divest its assets to pare debt after the death of its promoter V G Siddhartha. His body was found in the Netravati river in Dakshina Kannada district of Karnataka on 31 July, a day after he went missing.

Shares of CDEL on Wednesday settled at Rs 43.30 per scrip on the BSE, up 4.97 percent.

Updated Date:

also read

L&T's stake in Mindtree rises to 26.48% after company acquires 8.86 lakh shares of mid-sized IT firm
Business

L&T's stake in Mindtree rises to 26.48% after company acquires 8.86 lakh shares of mid-sized IT firm

Infrastructure major Larsen and Toubro (L&T) has acquired 8.86 lakh shares of Mindtree from the open market, taking its overall holding in the mid-sized IT company to 26.48 percent, according to a regulatory filing

Blackstone pays first tranche of Rs 150 cr for acquiring Coffee Day's technology park, remainder to be paid in a year
Business

Blackstone pays first tranche of Rs 150 cr for acquiring Coffee Day's technology park, remainder to be paid in a year

After Blackstone made the payment, it is expected that CDEL's working capital situation may improve and the majority of the proceeds may be utilised to bring down the overall debt of the company.

I-T Department had attached Mindtree shares held by VG Siddhartha without notice: Sources
Business

I-T Department had attached Mindtree shares held by VG Siddhartha without notice: Sources

There was no demand made by I-T Department before attaching Mindtree shares and for a “potential” tax demand of Rs 625 crore, shares worth Rs 3,000 crore were attached.