McLeod Russel posts 20.59% fall in net profit in Q3 after estate sales

The Tea Board had ordered compulsory closure of gardens and factories so that sub-standard tea is flushed out of the market

McLeod Russel's net profit fell 20.59 per cent to Rs. 53.59 crore for the quarter ended December 31, 2018 on the loss of production due to early closure of gardens in December following a Tea Board order, and sale of its 12 prime estates.

The net profit at the similar quarter of the last fiscal year stood at Rs. 67.49 crore.

Although the average tea prices in India firmed up by over Rs. 5 a kilo, the company’s revenue from operations during the third quarter (Q3) of the current fiscal year fell by 16.38 per cent at Rs. 465.22 crore as