How did Cafe Coffee Day Manage to navigate the debt Crisis?

Cafe Coffee Day commonly known as CCD, was founded by V.G. Siddhartha in 1996 in  Bangalore, Karnataka with an initial investment of Rs. 1.5 crore and after some initial challenges it soon became a very popular brand.

The company later took a lot of debt for expansion into other businesses like logistics, real estate, and IT services. Which later caused a lot of trouble for its core coffee business.

Company’s Debt Reduction Plan

The company had a debt of more than Rs. 7,000 Crore and worked actively to decrease the debt. In the year 2020, the company sold the Global Village Tech Park to Blackstone for Rs. 2,800 Crore, they also liquidated their non-core assets and investments, focusing on optimization and shutting down its loss-making outlets.

Recently NCLAT had set aside Insolvency proceedings against the company which was filed by IDBI Trusteeship Service Limited, also the company also made an announcement that it will be settling its Outstanding debt of Rs. 205 Crore with the debenture holders.

Also read: 1:10 Stock Split: Stock under ₹100 jumps after it sets record date for share split

Financial Highlights

The company reported an 8.94 percent YoY increase in revenue from Rs. 257 Crore in Q3FY24 to Rs. 280 Crore in Q3FY25. On a QoQ basis, the company reported an increase of 4.08 percent in revenue from Rs. 269 Crore in the previous quarter.

The company had a  Net profit of Rs. 76 Crore but later had a loss of Rs.11 Crore for the same period. On a QoQ basis, the company reported an increase in Net loss from Rs.4 crore to Rs. 11 Crore. 

About the Company

Cafe Coffee Day (CCD) is one of India’s largest coffeehouse chains, known for pioneering the café culture in the country. Founded in 1996, CCD operates a vast network of outlets across India, offering a range of coffee, beverages, snacks, and desserts. The brand is owned by Coffee Day Enterprises Limited and sources its coffee from its own plantations in Karnataka.

Written By Abhishek Das

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post How did Cafe Coffee Day Manage to navigate the debt Crisis? appeared first on Trade Brains.