Coffee Day defaults on payments of ₹434 crore in June, shares slide

Coffee Day Enterprise, which owns and operates coffeehouse chain Café Coffee Day (CCD), has defaulted on payments worth ₹434 crore as of June 2024, a regulatory filing said on Friday.

Out of the total default of ₹434 crore, ₹189.14 crore was due to be paid to banks and other financial institutions, Coffee Day informed the bourses.

The remainder amount of ₹244.7 crore pertained to unlisted debt securities, such as non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS), it added.

"The delay in debt servicing is due to liquidity crisis," the CCD operator said in its regulatory filing.

How Coffee Day performed in Q4

The number of outlets operated by the company dropped to 450 in the quarter ended March 31, 2024, which was down as compared to 469 in the year-ago period.

The numbers also slid as compared to the preceding December 2023 quarter, when the total outlet count stood at 454.

Coffee Day posted a net loss of ₹303 crore in Q4FY24, as compared to a net profit of ₹33 crore logged in the year-ago quarter.

The company's net revenue from operations, however, increased 5% year-on-year to ₹251 crore, as compared to ₹240 crore in Q4FY23.