McLeod Russel India profit down 1.9%

Our Bureau Kolkata | Updated on January 31, 2011

During the quarter ended December 31, 2010, McLeod Russel India Ltd, the largest producer of tea, posted lower operating profit of Rs 140.72 crore (Rs 142 crore) and lower net profit of Rs 135.31 crore (Rs 137.94 crore) despite a higher average selling price of Rs 149.28 a kg (Rs 142.41 a kg) and higher sales volume of 245 lakh kg (235 lakh kg).

For the nine months ended December 30, 2010, net profit was Rs 355.17 crore (Rs 361.31 crore) and operating profit was Rs 358.31 crore (Rs 378.87 crore), on higher selling price of Rs 148.84 a kg (Rs 141.88 a kg) and higher sales volume of 571 lakh kg (563 lakh kg).

Mr Aditya Khaitan, Managing Director of the company, said that the crop loss — nearly four million kg — suffered due to heavy rainfall in April, May, June and July, when quality teas were produced and sold, and the consequent loss in income could not be made up by the higher average realisation and higher sales volume in the subsequent months, and lower interest burden.

However, Mr Khaitan hoped that the performance for the whole year (2010-11) would be better. The improved results of McLeod Russel Uganda Ltd, Uganda, and the Phu Ben Tea Company, Vietnam, would be taken into account in the fourth quarter.

On Monday, McLeod Russel's share price closed at Rs 200.55 a share on the BSE, recording a drop of 1.79 per cent.

Published on January 31, 2011

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