McLeod Russel net at Rs 17.5 cr

BS 200 SCORECARD

Brij Mohan Khaitan-promoted McLeod Russel India has recorded a huge surge in net profit to Rs 17.47 crore in the third quarter ended December 31, 2006, compared with Rs 81 lakh in the same period last year, driven by improved price realisations from domestic and export sales.

Also, interest cost came down from Rs 15.01 crore to Rs 4.5 crore. However, sales were lower to Rs 173.74 crore from Rs 183.98 crore last year owing to deferred shipment on some of the contracts.

These shipments will happen in the last quarter of this financial year. The company's performance was influenced by better selling prices, higher by Rs 10.46 a kg for exports (including deemed exports) and higher by Rs 6.70 a kg for domestic sales, resulting in an overall increase of Rs 9.59 a kg compared with last year.

Export volumes were higher at 20 million kg against 18.2 million kg. The company expects opening prices for the next season in the month of April and May to be very strong. Company officials said, "With continuous consumption growth in India, we expect the prices for 2007-08 to remain higher compared with 2006-07."