The net profit of bulk tea producer Mcleod Russel India Ltd (MRIL) during the quarter ended December, 2012 increased marginally by five per cent to touch Rs. 123.7 crore, mainly on improved prices.
Although crop was higher during the quarter, margins were under pressure due to increase in wage and fuel costs. Consumption of raw material (cost of bought leaf) was higher by Rs. 81 crore due to an increase in volume and prices.
MRIL’s crop rose by 23 lakh to touch 220 lakh kg during the quarter, although the nine-month cumulative figure was lower by 18 lakh kg, and was estimated at 768 lakh kg. The B M Khaitan Group company said that dry weather conditions between January and May 2012 in major black tea producing countries, and excessive rains between July and September in North India impacted production.
The MRIL statement also noted that lower production in India and strong consumption growth in India had resulted in higher tea prices in 2012.
MRIL, which has operations in Vietnam, Uganda and Rwanda, said that during the year-ended December 2012, it achieved a production of 23.8 million kg through its overseas operations.