Kolkata, July 29 (IANS) At Rs.37.33 crore, Mcleod Russel India Ltd, the world’s largest tea producer, Friday announced a near 100 percent jump in net profit for the first quarter of 2011-12 ending June 30 against Rs 18.85 crore for the corresponding period of the previous fiscal.
The jump in net profit by almost 98 percent was facilitated by higher price of tea during the first quarter and a shortfall in production worldwide.
Dry weather conditions in Kenya and other African countries during the first three months have pulled down production in those countries by almost 37 million kg during the period.
‘With African tea production down by 37 million kgs, the company’s teas that are produced at Ugandan and Rwandan tea estates are garnering 50-60 cents more per kg at the Mombasa auction. Our estates in Uganda produce 16 million kg of tea, while the yield of Rwandan estates is 2 million kg,’ Aditya Khaitan, managing director of the company, said at the 13th annual general meeting of the company here.
Average prices of the tea of the company was higher by Rs 12.59 per kg over last year.
Shortfall in the global market and 2.5 to 3 percent growth in demand in the domestic market have helped the company to fetch higher prices during the first quarter.
‘As a group we are going to end this year with 104 million kg and this by far is the highest for us as a group. We hope that over the next 3 to 4 years, we will be able to touch the 115 million kg yardstick,’ Khaitan said.
‘This year monsoon has arrived on time and the production scenario till date is quite
encouraging,’ he added.
