Goodricke Sees 247% Growth In Net Profit To Rs 11.41 Crore

Tea major Goodricke Group (GGL) has registered a 247 per cent growth in net profit to Rs 11.41 crore in 1997 from Rs 3.28 crore the previous year. GGls turnover has grown 21 per cent to Rs 146 crore from Rs 120 crore in 1996.

Profit before tax has trebled to Rs 14.21 crore during the period under review from Rs 5.24 crore. The board of directors has recommended a 20 per cent dividend. S K Bhasin, managing director of the company, said, We aim to reduce our dependence on banks and lower our interest burden in 1998. The company expects that better liquidity will boost its bottomline which will help it give a better return to shareholders in future.

While its production remains stagnant at 17.5 million kg, earnings from exports have increased to Rs 23 crore from Rs 14 crore. The companys export earnings show a growth of over 60 per cent and account for 16 per cent of the total turnover. It exports to Germany, the UK and West Asia.

GGLs capital investment over the last five years has been Rs 8.65 crore, which has largely been from internal accruals.

Its packet tea sales registered a turnover of Rs 54 crore. Bhasin said over the last five years, the emphasis has been to enhance value addition to the traditional tea produce. Packet tea accounts for 45 per cent of its total production. Tiru Tea, that owns one of the companys properties in Darjeeling, Castleton, was converted into a wholly owned subsidiary in 1997. The plan to merge Tiru with the parent company has been put on hold at present.

With a 100 per cent subsidiary status, Tirus further growth has been assured and it can now look forward to a turnaround in its financials, Bhasin said.