McLeod Russel's Q3 down 31% to Rs 24 cr

Top line down 13% to Rs 442 crore, tea price realisation dips

McLeod Russel, the world's largest tea producer, posted a 31 per cent decline in its net profit at Rs 23.62 crore for the quarter ended December 31, 2016 even as its topline fell by 13 per cent at Rs 442.45 crore.

In the same quarter last fiscal, the company posted a net profit of Rs 74.97 crore with a net revenue of Rs 510.28 crore.

Its staff cost increased by Rs 19 crore on revision of wages and substantial increase in welfare costs, while average price realisations fell, impacting the bottomline.

The price realisation per kg of tea fell to Rs 170.26 a kg as against the Rs 177.74 per kg in the corresponding quarter of the 2015-16.

According to the company, tea prices in India were negatively impacted due to a record crop in Kenya and subdued demand both in export and domestic markets.

In the quarter under review, the company's sales volume fell by 10 per cent at 25.3 million kg (mkg) from 28.1 mkg a year ago.