Tata Coffee Ltd (NSE: TATACOFFEE) Q2 FY23 Earnings Concall dated Oct. 18, 2022
Corporate Participants:
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
K. Venkataramanan — Executive Director & Chief Financial Officer
Analysts:
Aniruddha Joshi — ICICI Securities — Analyst
Pranjal Garg — ICICI Securities — Analyst
Aman Batra — Goldman Sachs — Analyst
Nageshwar Nerurkar — Yadnya Investment Academy — Analyst
Suvarna Joshi — Quantum Advisors — Analyst
Rahul Ranade — Goldman Sachs Asset Management — Analyst
Akhil Parekh — Centrum Broking — Analyst
Presentation:
Operator
Good morning, ladies and gentlemen, and welcome to the Q2 FY ’23 Earnings Conference Call of Tata Coffee Limited, hosted by ICICI Securities Limited. [Operator Instructions]
I now hand the conference over to Mr. Aniruddha Joshi from ICICI Securities. Thank you and over to you, sir.
Aniruddha Joshi — ICICI Securities — Analyst
Yeah, thanks Michelle. On behalf of ICICI Securities, we welcome you all to Q2 FY ’23 Results Conference Call of Tata Coffee. We have senior management represented by Mr. Chacko Thomas, Managing Director and CEO; and Mr. K. Venkataramanan, Executive Director, Finance and CFO.
Now I hand over the call to the management for initial comments and then we will open the floor for question and answer session. Thanks and over to you sir.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you, Aniruddha. Good morning everyone. This is Chacko here. Thank you for joining in for the call today. I am obviously here to present the quarter two performance of the company. Very, very pleased to inform you, that we’ve witnessed a very strong quarter two across almost all the businesses. While there have been challenges pertaining to costs, logistics and demand particularly in some parts of the world. These are ongoing threats, but I think our efforts to reduce the same and the impact that we’ve been able to reduce by doing some of the, you know, some of the work that we have done, has been pretty rewarding.
So to begin with the, I think the standalone revenue from operations, you know, went up by about 38% compared to the same quarter of the previous year, INR261 crores as opposed to INR190 crores in the previous year. The standalone PAT is also up to INR144 crores. And I think, what these numbers reflect are few of these things, that is basically the performance in the instant coffee business, which is where our higher gross margins, improved realizations, affected or impact or — give a positive impact and eased whatever impact we had on account of inflationary pressures.
We also had a very decent volumes from our instant coffee plants, both in both in India and Vietnam. And finally of course, the fact that there was you know the green coffee sales and the quality of our sales, basically because of our — the efforts in premiumization etc. We had excellent realizations for the coffee sales. And last but not least, of course this also includes onetime exception item of about INR147 crores, on account of sale of a property.
Now moving to the individual businesses, I think first the instant coffee plants both in India and Vietnam, all three of them operated at practically full capacity. Sales for the quarter was pretty encouraging, despite all the issues that I mentioned above. Largely a lot of work on cost efficiency improvements. These are the kind of common threads that we see within all our operations. And you would be aware that you know, there is obviously inflationary pressures on power and fuel, for example, coal or husk or whatever that you use. And despite all that, I think this performance in terms of costs, as well as improvements that we carried out, helped us mitigate them.
Very specifically on Vietnam, while the impact of the ocean freight and logistics etc, which we were facing have come down substantially, I think these are still there and obviously it will take a little bit longer for it to actually normalize. I think what is important is our continued focus on NPD. The spirit in which we have been able to execute orders and of course continuing to retain our existing customers and look at fresh and new geographies, especially considering all the, you know, the global scenario as it exists today. Very happy also to say that you know, we have a very, very strong order book for the rest of the season too. So I think overall, the Vietnam performance has been improving.
As far as the plantations are concerned, I think while the weather has been often not being exactly very conducive, but I think we have fared well. We continue to focus on cost management etc. In particular our green bean business has done extremely well. This is because as I mentioned earlier, of all the efforts that we have taken to premiumize, and also to ensure that we timed our sales in a very effective and efficient manner. I think this augurs well for the coming quarters too.
Of course, I mean we had some impact of bad weather on tea. We did make some recovery of sorts in in the month of September. But I think largely on account of some of the better prices that we see prevailing on — for orthodox variety. We have maximized orthodox production and that has also helped us — some of the issues that we faced on account of the weather.
A word on the consolidated results. I think the revenue from operations was INR718 crores, as compared to INR549 crores, an increase of 31%. The consolidated profit is INR147 crores, growth of INR174 crores compared to the same period last year. I think while our subsidiary Eight O’Clock Coffee registered higher revenues. The profitability for the quarter was impacted, and this is basically on account of higher coffee input costs, and most importantly, the lag in pricing recovery from the market, which we are hoping that — you know and we expected to improve in the ensuing quarters.
So overall, quarter two has been a good quarter for Tara Coffee, as we move ahead with the new scheme of arrangements of the merger. And I think some of the pillars that I mentioned above, which on cost planning, utilization etc, I think and also of course execution of orders that we have. We should see, good performance going forward too.
I will now hand over to my colleague and the CFO of Tata Coffee, Venkat, who will take you to the financial performance for quarter two.
K Venkataramanan Executive Director & CFO
Good morning to all. We have few financial highlights, I will mention. One is, as Chacko has mentioned, the performance across the segments of the standalone entity, which includes of course I’m including Vietnam as well, have been quite strong. The plantations have done exceptionally well, especially coffee on account of higher prices, which is being realized. And the instant coffee, though there has been some dip in volumes, but we have sort of — improved the realizations and margins have been [Phonetic] protected.
That’s on the standalone front. There has been one time exceptional book profit on sale which has been — on the property, which has been booked, which has been included in the results. And on the consolidated as we mentioned, you know Eight O’clock has — there has been a good growth in revenue. The recovery of prices from the market has not fully offset the increase in green costs. So that is something that will be recovered with a lag, and we hope that that sort of — we hope in the coming quarters, the same would be affected.
And with that as we mentioned there, there has been a strong profitability performance, both on the standalone and in the overall consolidated results. Thank you very much. We look forward to questions.
Questions and Answers:
Operator
[Operator Instructions] The first question is from the line of Pranjal Garg from ICICI Securities. Please go ahead.
Pranjal Garg — ICICI Securities — Analyst
Hi, good morning, sir. Congratulations on a good set of numbers. Sir my question is regarding what is your outlook for the coffee prices, global outlook? As we have seen that coffee prices have corrected, and the inflation which was there has now come in place. Where do you see the prices moving forward, and what is your outlook for the margin as well?
K. Venkataramanan — Executive Director & Chief Financial Officer
Okay. I’ll take the question on coffee prices. And I think I mean, very consistently over many of these quarters been saying that coffee prices would move in a very specific range, and I think almost to that effect, I think we’ve been — fairly accurate. What do you see the prices at the moment, Arabica is generally around the $2 to $2.2 [Phonetic] level. I think that is what we would see coffee to hovering around going forward.
Few things which you need to keep in mind. Of course there is this harvest of Brazil that needs to come in, and obviously sentiments are quite positive in terms of a decent enough harvest. So I do not see coffee prices running away, but I do not see coffee prices dropping either, because I don’t think there is the drawdown in terms of certified stocks has been quite immense. So I think it’s fairly comfortable to say, that the coffee prices that we see today, should be maintained.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Yeah. So I’ll just respond on the margins front as well. Now I’ll just look at it in three buckets rather. So one is on the coffee plantation side. Plantation side, with the kind of — if the prices are holding on, then our margins should be good. There’s no issue cause of concern there. Of course only one call out is on the crop front, which of course so far we have had — there doesn’t seem to be any major concern on the coffee crop.
On pepper, the prices are kind of slightly declining, but we hope that over a period of time, we should be — there again, the margins will be protected. On the instant coffee side, we definitely see that margins would be protected and with the kind of you know product improvement and the NPD work we do, across both India and Vietnam, we should be holding on and improving our margins on the instant coffee side.
So that’s on the — on the Eight O’Clock as we mentioned briefly. It’s a typical FMCG business. So there is some time lag for recovery of costs. They have taken up prices definitely, but it’s not fully kind of offsetting the increase in the green cost. So that we are kind of hopeful that, next to — the ensuing quarter is the same, the recovery from the market would be completed and margins would be restored.
Pranjal Garg — ICICI Securities — Analyst
Okay, sir. That’s very helpful. Sir my next question is a bookkeeping question, regarding your exceptional item of INR138 crores. Can you please help us regarding the details of it?
K. Venkataramanan — Executive Director & Chief Financial Officer
No, it is same as the surplus land which we had in the company, so we were looking for a buyer and it has been sort of sold, that’s all. We found the buyer at a good price. So we exited that.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
It’s a surplus or rather idle land.
Pranjal Garg — ICICI Securities — Analyst
Okay. Sir, we have seen our capacity utilization levels were peaking till the last quarter. Where are we in terms of capacity utilization and what are the capacity expansion plans in both Vietnam and India?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
So the capacity, as you rightly mentioned, we are operating at peak capacity in India and Vietnam. So on the capacity expansion front assets we have some — we are sort of evaluating and thinking through the options, and we will kind of come back, once we have firm plans on that. But definitely we are looking at whatever opportunities there could be possible.
Pranjal Garg — ICICI Securities — Analyst
So there are no formalized plans as of now?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
As of now we are evaluating as I said. So there’s no, kind of — we have not yet come to the approval stage as of now.
Pranjal Garg — ICICI Securities — Analyst
Okay sir. That’s all from my side. I will join back the queue.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Aniruddha Joshi from ICICI Securities. Please go ahead.
Aniruddha Joshi — ICICI Securities — Analyst
Yeah, thanks. So sir, in terms of Eight O’Clock, basically there is very high inflation in the Western world in USA, and most likely, there is likely to be a recession. So how do you see Eight O’Clock business in terms of volumes, revenues moving ahead, and also how do you see the margins? Secondly, is there any down trading from the premium brands, has it benefited Eight O’Clock or is there any down trading that has happened from Eight O’Clock, which has gone down to the relatively smaller or cheaper brands than Eight O’Clock? So how do we see the situation panning out in let’s say next four odd quarters?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Well regarding the recession and etc, coffee you know it’s a essential kind of drink beverage. So we are not seeing any impact on the demand — coming from the demand as such. As regards the increase in prices and margins, what we see is that, obviously the — quite a bit of linkages to the green cost. So as we see along the coffee prices, so we expect the prices and margins to kind of restore our you know — definitely do well.
So we are not seeing any kind of down trading as such, we haven’t seen any impact of it. In fact we have taken up prices and the volumes have held on rather. So we are not seeing down trading effects as of now.
Aniruddha Joshi — ICICI Securities — Analyst
Okay. Sir, what has been the average price hike, in case of Eight O’Clock in USA?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Oh that varies. We are not able to comment on a specific number because all different kind of the customers and with different contracts and all that. We’ll not be able to give you…
K. Venkataramanan — Executive Director & Chief Financial Officer
And we’ve done it in two, three tranches. So it is over a fairly long period of time.
Aniruddha Joshi — ICICI Securities — Analyst
Okay. Sir, third question, in terms of the land parcels that we have sold. So is the entire line parcel sold out, or anything left now? And then secondly, what are the plans with the cash that the company has generated, with sale of these land parcels?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
So this is a specific kind of land parcel which is — whatever was — that specific land parcel has been fully sold. And of course we are sitting on about INR200 crores of cash, in the company as such. And it is — in the standalone entity. there is positive cash and cash equivalent. So we have — as of now, I don’t think we have come to a state where we have — we can commit on what we were doing with the money, but we will look at what — as there was a query also on the instant coffee capacities and all that, we are looking at some of — what our options are there on that. So as of now, we are — that’s where we are.
Aniruddha Joshi — ICICI Securities — Analyst
Okay. Surely sir, in terms of lastly, how do you see the integration plans moving, in terms of whatever the back end work etc, and the regulatory work. So when do you see the — finally the merger going through or the guidance about Q1 FY ’24 that remains largely stable?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
So as of now, as we see the — the merger process is being handled at the NCLT level, both in Calcutta and Bangalore. And we expect, we are hopeful that you know we — as of now, we expect that the merger process should be through by before the end of the financial year.
Aniruddha Joshi — ICICI Securities — Analyst
Okay, sure sir. Sure sir. That’s very helpful. That’s it from my side.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
[Operator Instructions] The next question is from the line of Aman from GSAM. Please go ahead.
Aman Batra — Goldman Sachs — Analyst
Yeah, hi. So one question was on the Eight O’clock part of it; because if you look at the exchange prices for coffee, Arabica coffee, they don’t seem to have gone up in the last six, nine months. So can you give us a sense of what kind of contracts and what kind of inventories you run in Eight O’Clock and what lags it impacts the costing for you?
K. Venkataramanan — Executive Director & Chief Financial Officer
So it’s like this, so typically roasters hold about you know 30, 40 weeks of you know green bean stocks. But obviously as the prices move up, there’s also a bit of you know kind of you know — taking your view on the market, and the depletion of stocks which happens. So while the replacement of these greens are coming at a lower cost. So obviously some of the impact on account of the earlier increase in green costs, to be sort of you know fully passed on. So that that will take a couple of — will take about three to four months, couple of months, maybe two to three months of impact to pass on the increases fully. So that’s what we sort of — this quarter has been has been impacted, but the ensuing quarters should probably, you know — kind of margin should be restored.
Aman Batra — Goldman Sachs — Analyst
And what was the difference last year? Because the real spike in coffee prices started last year. But we very nicely protected our margins all through last year. So is there any difference between the two situations here?
K. Venkataramanan — Executive Director & Chief Financial Officer
No, as I said, no. See, when we hold the longer stocks, no, obviously we get the benefit of lower greens coming in. So kind of you know the kind of — the coffee, the rate of consumption is at — out of the earlier stocks, which were held at lower prices. So as the prices move up, there is some amount of depletion which happens, and for which the recovery has to happen.
So last year as you rightly said, we took up prices in line with the market, and we were able to protect the margins. Obviously when we start depleting the stocks and higher greens kind of come into stock and get used up. So that recovery takes some time.
Aman Batra — Goldman Sachs — Analyst
Got it. So, fair to assume, that with some bit of lag, margin should come back to [Speech Overlap].
K. Venkataramanan — Executive Director & Chief Financial Officer
Absolutely, you’re right.
Aman Batra — Goldman Sachs — Analyst
And just any outlook on the volumes growth, you kind of highlighted on Eight O’Clock, because last few quarters we have seen a lot of volatility, first the COVID related lockdown, stocking and then destocking. So what should be the normal growth trajectory that we should assume on the volume front?
K. Venkataramanan — Executive Director & Chief Financial Officer
So we are looking at growth, but obviously being a mature market, it will — it would take some — and Eight O’Clock has had some — has some 4%, 5% market share on the back. So that — so while the volumes have been sort of kind of protected compared to the previous year, the growth we’ll have to look at in terms of how we are able to manage in the market.
Aman Batra — Goldman Sachs — Analyst
Got it. And in terms of distribution, expansion in U.S. geography, is that still a lever which you can play?
K. Venkataramanan — Executive Director & Chief Financial Officer
There is lever, but that depends — that will depend on where they see the opportunities, Aman.
Aman Batra — Goldman Sachs — Analyst
Okay. Wonderful. Thank you.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
[Operator Instructions] The next question is from the line of Nageshwar Nerurkar from Yadnya Investment Academy. Please go ahead.
Nageshwar Nerurkar — Yadnya Investment Academy — Analyst
Hello sir. Good morning. Sir, I just missed the last line about what you said regarding the merger. Can you please repeat it? Means, by what time it will be completed?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
No, see, the NCLT process is on, both in Calcutta for TCPL and for Tata Coffee at Bangalore. We are — this process is on like — there will be a shareholders’ meeting of Tata Consumers, which is happening around 12th of November also. So — and Tata Coffee is yet — it’s to be fixed up. So at this stage, we are kind of hope — I mean, sort of hoping that it should get over by the end of the financial year.
Nageshwar Nerurkar — Yadnya Investment Academy — Analyst
Okay. Thank you sir.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
Thank you. There is a follow-up question from the line of Pranjal Garg from ICICI Securities. Please go ahead.
Pranjal Garg — ICICI Securities — Analyst
Hello. Thanks for the opportunity again. My question is regarding — there was a volume demand challenge in…
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
I couldn’t hear, Pranjal.
Pranjal Garg — ICICI Securities — Analyst
Can you hear me now?
K. Venkataramanan — Executive Director & Chief Financial Officer
Yes, slightly better.
Pranjal Garg — ICICI Securities — Analyst
Okay. The company was facing volume demand challenges in Africa due to high inflation in — till the last quarter, while there have been — there must have been some relief, — so I would like to know, what is the situation right now. And apart from that, which geographies are the most affected and which ones are the least affected right now from Tata Coffee point of view?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
So I would — I’ll answer the first question. Africa still continues to be a problem, and it hasn’t really opened up as much. And this is again, because of the purchasing power and the inflation that African countries are seeing at the moment, right? So, I do expect us to take a little bit more time to work through.
We have a fairly good coverage, in fact — and that’s the reason why we — NPD and premiumization made such a big impact. So we do a fairly large quantity into Europe, and specifically around — in Europe, Western Europe and also parts of Eastern Europe. And then, of course, we have opened up new markets in Middle East, our Southeast Asia markets still continue to be pretty remunerative, and last but not the least, Russia is still a major contributor. So in all fairness, I think our sales are well distributed across. If there is a market that is impacted, then that is largely Africa.
Pranjal Garg — ICICI Securities — Analyst
Okay. And sir, you highlighted in your opening comments, that you are looking forward to supply to new geographies from your Vietnam facility.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Yes.
Pranjal Garg — ICICI Securities — Analyst
Can we have a picture of it, what exactly are these new geographies?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
No. So these are — this is exactly what I have mentioned. These are all functions of what new products you would be able to supply to who all. The new geographies wouldn’t include parts of Western Europe, right, where our footprint isn’t as strong. There are, obviously, parts of Southeast Asia, which we would like to really explore. Southeast Asia and also the large China Mainland. So these are the broad geographies that we feel have a lot of potential at the moment.
Pranjal Garg — ICICI Securities — Analyst
Okay sir. Thank you sir. That was all from my side.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thanks.
K. Venkataramanan — Executive Director & Chief Financial Officer
Thank you.
Suvarna Joshi — Quantum Advisors — Analyst
[Operator Instructions] The next question is from the line of Suvarna Joshi from Quantum Advisors. Please go ahead. Thank you for the opportunity. Most of my questions are answered. Just one question, you made a comment on the tea pricing…
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Yes.
Suvarna Joshi — Quantum Advisors — Analyst
Yes. So I just wanted to understand, how is that segment doing? And, I mean, what is the current price trends that we’re seeing? Are they looking at some bit of inflation, or they also look like to be range-bound level like you said, for coffee? So that is the question.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Yes. So as I also mentioned in my statement, there is, obviously, a sudden improvement and a lot of interest in the Orthodox variety of tea. And these teas are of interest at the moment, because unfortunately or fortunately for India, Sri Lanka went through the turmoil, and the fact that they’re almost close to 20 million down in terms of crop from Sri Lanka. So definitely, for this particular season, as we now head towards drier weather, Orthodox varieties of teas would not just maintain, it would possibly — may even improve.
As far as the CTC is concerned, these are largely — and especially from South India, these are largely for a specific market and these kind of teas would typically be range-bound. But the point is, there are periods of enhanced sales because of festivals, etc, that’s when the — there’s a bump up of price couple of weeks before that, because there’s a buying that actually takes place during that period.
But Orthodox, we’re extremely sanguine about the potential for the entire year and maybe beyond, too, because I think there is a wide open market which is still there with demand for Orthodox teas.
Suvarna Joshi — Quantum Advisors — Analyst
Sure sir. That’s it from my end. Thank you. I will follow-up in the queue, if there are any questions.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
The next question is from the line of Rahul Ranade from Goldman Sachs Asset Management. Please go ahead.
Rahul Ranade — Goldman Sachs Asset Management — Analyst
Yeah. Hi sir. Thanks for the opportunity. Just one clarification on Eight O’Clock. So would it be fair to say, that in terms of taking price increases, it is generally easier for roasters to do that when the prices for Arabica greens are trending up, versus a time like now when underlying prices have been trending down. But all of you are sitting on high cost inventory? So is it more difficult during such times?
K. Venkataramanan — Executive Director & Chief Financial Officer
No, it’s like this. They have the — the window, as agreed as per the contracts to take up prices. So it would be based on that, because we are also looking at a historical way of how the prices have moved. So it’s not at a particular point of time that the pricing action would be — would get initiated. The pricing action would get initiated based on the movement in costs. So based on that, the prices would be taken up with a lag.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
And typically you will also find others following suit generally, a couple of months here or there or whatever it is.
K. Venkataramanan — Executive Director & Chief Financial Officer
Because, see, the movement of Arabica also, the prices when they are moving up very sharp, it becomes very difficult to kind of pass on the entire increases at one shot. So it is a staggered manner. That’s how the FMCGs typically operate, as you are aware [Phonetic].
Rahul Ranade — Goldman Sachs Asset Management — Analyst
But fair to say that it is more kind of — a little like a formula-based, rather than roasters taking independent calls, and if someone is irrational, he might — in such an environment where Arabica prices are going down, he might actually not take price increases to gain market share. Would that be a possibility?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Rarely.
K. Venkataramanan — Executive Director & Chief Financial Officer
As I mentioned, it’s not at a particular point of time. It is a kind of movement which happens and it will also depend on the contracts with the customers.
Rahul Ranade — Goldman Sachs Asset Management — Analyst
Sure. Got it. Thank you.
Operator
The next question is from the line of Akhil Parekh from Centrum Broking. Please go ahead.
Akhil Parekh — Centrum Broking — Analyst
Thank you for the opportunity. Sir, my first question is on the demand of freeze dried coffee versus spray dried coffee. Are we seeing any divergence? Has there been any downtrading, where the consumers have shifted from FDC to SDC because of the price inflation and probable talks of recession?
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
So I’ll answer that. I think for the fact that we are running all three units — for us, Vietnam is a 100% FDC unit, and the other two units in India are largely spray and agglo and, of course, a small — a decent enough quantity of freeze dried. We’re running all the plants at 100% capacity. So we do not see such an issue at the moment. But going forward, anything can happen. So it’s a little –but at the moment, I don’t see any downtrading happening, like what we had actually seen during the period when we had COVID, etc, I don’t see that now.
Akhil Parekh — Centrum Broking — Analyst
Okay. And second question is on the Instant Coffee prices basically. How has the realizations for us has moved on a Y-o-Y or a Q-o-Q basis?
K. Venkataramanan — Executive Director & Chief Financial Officer
The prices have improved. In fact, when compared to the previous year, we have been able to improve the prices. There is no issue there because, see, again, once again, the prices of the coffee, etc, will be there, kind of — which will kind of get into the pricing. So we have improved the prices.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
In fact, despite the fact that green prices have actually gone up, you’ve also had a function of increased input cost of, say, coal or husk or whatever it is, power and fuel costs going up substantially. You also have to view along with that freight costs. Freight costs somewhere have kind of come down, over what they were last year, but still way above what they were pre-COVID. So all — it’s a very complex kind of a thing, but despite all that, as Venkat mentioned, I think margins have definitely been superior to the previous year.
Akhil Parekh — Centrum Broking — Analyst
Okay. And if we can quantify, I mean, would it be fair to say at least 20%, 30% of realization growth is there on a Y-o-Y basis for us?
K. Venkataramanan — Executive Director & Chief Financial Officer
20%, 30% growth in revenue terms you are saying?
Akhil Parekh — Centrum Broking — Analyst
No, no. The price realization, per kg basis?
K. Venkataramanan — Executive Director & Chief Financial Officer
See, it would depend on the mix no, because see, for example…
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Very difficult. Very, very…
K. Venkataramanan — Executive Director & Chief Financial Officer
It’s difficult to put a number to that, but as we clearly see in, for example, Vietnam, if you take that of the specialty Arabica or differentiated blends would contribute. So there has been a fair bit of improvement in the prices. But here in India, for example, it will depend on the mix between spray, agglo and freeze. So I won’t put a number of 20% and all that, but definitely there has been improvement in the prices.
Akhil Parekh — Centrum Broking — Analyst
Okay. But the pricing trend continues to remain stable at this point of time or are we seeing a…
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Yes. Very much stable. Yes. We don’t see…
K. Venkataramanan — Executive Director & Chief Financial Officer
It will only probably vary between geographies, that’s all. Otherwise, it is stable.
Akhil Parekh — Centrum Broking — Analyst
Okay. Got it. That’s all from my side and best wishes for coming quarters.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.
Operator
Thank you. There is a follow-up question from the line of Aniruddha Joshi. Please go ahead.
Aniruddha Joshi — ICICI Securities — Analyst
Thanks. Yes. Sir, in terms of the domestic business, now Tata Consumer has also rolled out the Tata Coffee Grand. So overall, how has been the feedback? And Tata Coffee being the manufacturer, so how do you see the acceptance of the new product that has been rolled out in the market? And how do you see overall, that business going ahead?
K. Venkataramanan — Executive Director & Chief Financial Officer
So I will talk — see, Anirudh, you should probably get more — get more details from Tata Consumer on the market response, rather we are concerned compared to the previous year, definitely volumes are looking up. And the product has been very well received in the market.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
And that’s the feedback that we get very, very clearly.
K. Venkataramanan — Executive Director & Chief Financial Officer
Correct.
Aniruddha Joshi — ICICI Securities — Analyst
Okay. Sir, last question. In terms of now exports to global markets, like Eight O’Clock Coffee or even Starbucks, we have been supplying some products from India and our other locations. So how do you see overall opportunity for exports over a two to three year period? Which are the other key customers that have been in a way tapped in past one to two years? And where we see the bigger opportunity in terms of growth?
K. Venkataramanan — Executive Director & Chief Financial Officer
Anirudh, first of all, just to correct, we are not exporting roasted beans to Starbucks outside of India. We are the sole suppliers of Arabica beans to — for the Indian stores. In the Indian stores of Starbucks, have been sort of aggressively, there is a growth plan and they are opening 50, 60 stores a year easily last year and all that. So that is the kind of demand which we are seeing.
On Eight O’Clock, of course, we are not — from here we are not exporting anything, because Eight O’Clock gives us LatAm Arabica beans. So that — they are very particular about the kind of — the sourcing of the beans for the Eight O’Clock market. So that we don’t export. But other markets from the Instant Coffee and the Green Beans, of course, these are well spread out, and we are definitely seeing traction in most of the geographies, especially Europe and Southeast Asia and all that.
Aniruddha Joshi — ICICI Securities — Analyst
Okay. Sure sir, understood. Thank you.
Operator
[Operator Instructions] As there are no further questions, I would now like to hand the conference over to the management for the closing comments.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you very much for joining in the call. We hope to see you next quarter. Thank you very much.
K. Venkataramanan — Executive Director & Chief Financial Officer
Thank you very much.
Operator
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Chacko Purackal Thomas — Managing Director & Chief Executive Officer
Thank you.