Industry Structure and Developments
Production of tea in South India has been slightly lower than last year. South Indian orthodox tea prices have been quite strong during the year under review. Well-made orthodox tea is expected to command a premium price during the current year.
Opportunities and threats
Your Company has scaled up production of high value teas- both organic and conventional-with better focus on high value grades and introduction of new buyers in export and domestic markets.
Increase in labour and other costs continues to impact the results.
Performance
The total quantity of tea manufactured during the year under review was 33,94,965 kgs as against 34,11,886 kgs during the previous year. Your Company has recorded a sale of 37,07,341 kgs as against 34,87,144 kgs during the previous year. The total exports during the year were 18,91,839 kgs as against 16,50,415 kgs during the previous year.
Income from commercial building during the financial year 2022-23 generated a revenue of Rs.567.54 lakhs as against the previous years revenue of Rs.558.24 lakhs.
Outlook
As there has been a delay in summer showers in the current year, the crop prospects are slightly lower than 2022-23. However, with the Companys focus on enhancing production of high-quality teas, strict cost control and mechanization measures, the outlook appears good.
Your Company is dependent on weather conditions for production of green leaf, which is a major risk factor for the business. The market demand and potential competition in both domestic and international markets have significant impact on the results. Prevailing government regulations with reference to labour and operations also continue to have an impact on operations.
Internal Control Systems and their adequacy
Your Company has adequate internal control systems in place which are further strengthened by an internal audit function carried out by an external audit firm. With the statutory auditors operating at the apex level, in the opinion of the Board of Directors, these systems are adequate for the size and nature of the Companys business.
Financial Performance
Revenue from operations achieved during the year was Rs. 83.65 crores as against Rs.75.65 crores in the previous year. Profit before tax for the year was Rs.14.92 crores as against Rs.12.88 crores during the previous year. The performance of the Company improved due to better sales price realization during the year under review.
Labour Relations
The labour relations in the estates during the year were cordial. The estate managements continue to implement various measures relating to safety and welfare of employees beyond what is stipulated by prevailing laws and regulations. The total number of permanent employees on the rolls of the Company as on 31st March 2023 was 1194.
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.