The Hindu : Business : McLeod Russel net at Rs. 47 cr.

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Tuesday, Jun 03, 2008
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McLeod Russel net at Rs. 47 cr.

Special Correspondent

Hopes to do better in 2008-09 on improved tea prices

KOLKATA: Having just maintained its bottomline in 2007-08, McLeod Russel India is expecting to turn in improved results in 2008-09, riding on the back of improved tea prices, but is apprehensive about rising input costs.

Dipak Khaitan, Vice-Chairman, said here at a press conference on Monday that tea prices at auctions for the last two months had been Rs. 12-15 a kg higher than last year. K. K. Baheti, Chief Financial Officer and Director, said these were the best prices in a decade.

The company, which is billed as the world’s largest bulk tea producer, closed 2007 with a crop of 77 million kg and exports of 30 million kg. “We suffered a price drop of Rs. 5 a kg in the first half of the year when we sold bulk of our production and could make up only some of the losses through a Rs. 8 a kg increase in prices between October and March when we sold about 25 million kg,” Mr. Khaitan said. Selling price for 2007-08 was Rs. 87.21 a kg.

Cost of production too increased by Rs. 2.50 a kg although the company could maintain its profitability with cost saving measures.

The net profit stood at Rs. 47.21 crore on a standalone basis against Rs. 47.47 crore in 2006-07 while the consolidated net profit stood at Rs. 46.41 crore.

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