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Jay Shree Tea & Industries, a BK Birla group outfit, on Monday reported extended loss in the fourth quarter and lower net profit for the full year of 2013-14, on lower tea crop and price realisation and higher cost of production.
The company’s March quarter net loss was ₹44.21 crore against ₹36.45 crore loss a year ago, while the full-year net profit was down at ₹3.34 crore from ₹40.07 crore in the previous year.
The reduced tea crop in Cachar in Assam, lower prices for common and medium varieties of tea and an increase in wages and input costs raised the output cost and cut the profitability of tea to ₹59.21 crore in 2013-14 from ₹69.40 crore in 2012-13.
Fertiliser subsidy “High sugar cane prices fixed by the State Government with dull market for sale of sugar resulted in a loss of ₹18.76 crore against a profit of ₹16 crore last year,” the company said.
Lowering of fertiliser subsidy also affected the Jay Shree’s single superphospate business and caused a loss of ₹4.28 crore against a thin profit of ₹79 lakh in the previous year.
The total (domestic and overseas) tea production of the company improved by 1.6 million kg to 22.3 million kg.
Tea output in Rwanda was up (35.38 lakh kg) while in that Uganda (14.93 lakh kg) was same as last year. Price realisations in African plantations were also down.
The company’s stock closed down 13 per cent at ₹95 on the BSE.
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