World's largest integrated coffee plantation company Tata Coffee reported 15% rise in consolidated sales to Rs. 350 crore for Q3FY11. Operating profits improved 68% (YoY) to Rs. 78 crore due to revival in global demand and prices, which was adversely hit by recession in the previous year. Net profits, which stood at 3 crore for Q3FY11, surged over eleven-fold to Rs. 33 crore, resulting in third quarter EPS of Rs. 17.58. Company's plantation business is performing well, while coffee and other produce (excluding tea) segment which recorded 17% jump in topline.

Q3FY11 has been exceptionally good for the company in terms of margin improvement. Moreover, since 13^th January 2011, when the Starbucks alliance was announced, the share, which has been languishing at 450 levels, has seen a sharp run-up of over 60% to current 725+ levels. At CMP, share price is being discounted by over 15x, which is largely due to Starbucks euphoria and revival in global coffee demand, especially instant coffee.