The Hindu Business Line : McLeod hopes to become debt-free soon

Kolkata, July 30 McLeod Russel India Ltd hopes to become a debt-free company within the next two years, according to Mr Aditya Khaitan, Managing Director of the company.

Speaking to newspersons after the conclusion of the company’s 10th annual general meeting held here on Tuesday, Mr Khaitan said this would be achieved through better operational efficiencies and higher sales realisations.

“Tea prices have already gone up by Rs 18 a kg over last year. We expect it to go up further. Higher domestic consumption will drive prices and we expect good returns,” he said. The total secured and unsecured loans of the company stand at Rs 457 crore. Mr Khaitan said the company was hopeful of producing 75 million kg of tea in the current fiscal, up from 74 million kg produced in 2007-08. In 2007-08, the company’s exports – both direct and deemed – stood at 27.4 million kg valued at Rs 255 crore. The average price realisation for the company’s teas in 2007-08 was Rs 87.16/kg.

During the fiscal 2007-08, McLeod Russel recorded turnover of Rs 655.48 crore (Rs 606.60 crore).

The profit before tax was Rs 51.88 crore (Rs 44.38 crore) while the profit after tax stood at Rs 47.21 crore (Rs 47.47 crore). A dividend of Re 1 was declared on equity shares of the face value of Rs 5.

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