McLeod Russel net profit up by 186% in Q3

Bulk tea producer McLeod Russel India on Monday reported a whopping 186 per cent rise in its net profit to Rs 67.49 crore in the quarter ended December 31, 2017 as compared to Rs 23.62 crore in the year-ago period.

Its revenue from operations during the quarter under review was at Rs 556.38 crore, up by 22 per cent from Rs 457.50 crore in the corresponding period of 2016-17.

Operating profit before interest and depreciation for the quarter was at Rs 52 crore as against Rs 60 crore last year. However, last year, operating income included Rs 15 crore of land compensation, the company said.

Staff cost increased by Rs 21 crore on revision of wages and increase in welfare costs, it added.

The company said tea prices in the African region have been higher by $0.50 per kg for 2017 due to the loss of crop in Kenya and this trend would continue considering the current dry weather.

According to the company, tea prices in North India have increased by Rs 8 per kg due to increased demand from both domestic and export market.

Tea prices are expected to move much higher tracking African prices for the new season's tea on improved export demand and expectation of growth in rural demand in India, the company said.

However, it also said the cost during the year is expected to be higher by 9 per cent in absolute terms due to increase in wages and input costs.

--IANS

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