Bottom line swells for tea firms on lower crop, higher at-home consumption

Industry says Q3 of FY21 also likely to be good; Moreover, there will be no dry period as North Indian gardens observe closure during winters

A large part of the population is working from home and drinking more tea. A bump in at-home consumption of the world’s preferred beverage, coupled with lower crop due to Covid-19 disruptions is adding to the bottomline of companies.

The largest producer, McLeod Russel India, reported a net profit of Rs 148.29 crore in the September quarter, an increase of 63 per cent on a year-on-year basis; Jay Shree Tea & Industries posted a net profit of Rs 76.67 crore compared to Rs 8.41 in the same period last year; Goodricke Group clocked in a net profit of Rs 72.85