The world's largest tea producer McLeod Russel India today reported a net loss of Rs 130 crore for the quarter ended March, 2010, against a Rs 88 crore loss in the corresponding period last year, even as annual production capacity crossed the 100 million kg mark.
"The net loss in Q4 has increased due to higher tax during the year of Rs 70 crore as compared to Rs 14.3 crore in 2008-09. We have reduced the loss before tax to Rs 50 crore from Rs 74 crore during the year," Mcleod Managing Director Aditya Khaitan said.
"It is normal for all tea companies in the North-East to post loss in the Q4 where there is no production," he said.
The company's full year standalone profit was Rs 240.33 crore during 2009-10, up 171 per cent over the previous year when it posted a net profit of Rs 88.79 crore.
After its acquisition of a tea company in Uganda in January, 2010, the company's production is expected to total 101.5 million kg in 2010-11, according to Khaitan.
Domestic production was expected to be 80 million kg, whereas production at its Vietnam facilities was only 5.5 million kg against the targeted 16 million kg.
McLeod Director Kamal Baheti said this year was the best for the company. The company sold 78.3 million kgs of tea on a consolidated basis during the year.
The company's Uganda acquisition has not been considered for 2009-10.
Khaitan said they expect quality tea to fetch a higher price of Rs 12-15 per kg. Last year, the average price was Rs 26.22 per kg higher compared to 2008-09.
