McLeod Russel posts Rs 230 cr profit in Jul-Sept quarter

The company had posted a net profit of Rs 223.23 crore in the year ago period

Bulk tea major McLeod Russel today reported a marginal increase of 3% in its net profit at Rs 230.31 crore for the quarter ended September 30.

The company, which is the largest bulk tea company in the world, had posted a net profit of Rs 223.23 crore in the year ago period, it said in a filing to the BSE.

Net sales of the Kolkata-based company rose by 4% to Rs 430.06 crore in the second quarter this fiscal from Rs 414.81 crore in the same quarter of 2011-12 fiscal.

The total expenditure of the company rose to Rs 213.93 crore in the July-September quarter of 2012-13 fiscal from Rs 199.47 crore in the same period of last fiscal.

The company sold one of its tea estate in West Bengal of Rs 25 crore during the quarter, the filing said.

On the outlook for tea production in the country, McLeod Russel said that the output is expected to decline on adverse weather conditions.

"Indian production is estimated to be lower by 25-30 million kg as compared to last year up to September. Weather conditions continue to be difficult during October as well which is likely to increase the shortfall further," it said in a separate filing to the BSE.

India, the world's second largest tea producer, had produced 111.06 million kg of the brew in January-September period of the 2011 calendar year.

The company's own production fell to 54.8 million kg in the first 6 months of this fiscal against 58.9 million kg in the same period of 2011-12 fiscal.

Shares of the company today fell marginally by 0.17% to settle at Rs 296.95 a piece from previous close at the BSE.