Jay Shree Tea & Industries Ltd (JSTIL) reported a net profit Rs 65 lakh in the quarter to December 30 this fiscal against Rs 29.62 crore in the September quarter and Rs 19.79 crore in the December quarter of the previous fiscal.
Mr R.K. Ganeriwala, President, Chief Financial Officer and Secretary of JSTIL, told Business Line that sharp drop in tea price realisation, wage increase, increase in input cost and rise in depreciation for the merged sugar business dragged down the profits.
“The average price realisation for the common variety of tea slipped by Rs 7 a kg during the quarter to December 2011 compared with that in the previous year. Despite producing 76,000 kg tea more, the net realisation flagged. Compared to the average price realisation in September quarter, the decline in December quarter was even more of Rs 10 a kg,” he added.
He said the effect of upward wage revisions, following an agreement for Dooars and Darjeeling estates, was also felt during the quarter. Mark-to-market treatment of loss on account of rupee movement against the greenback also wiped out Rs 8.76 crore from the bottomline. This relates to external commercial borrowings resorted to earlier for capital expenditure in sugar and tea businesses, he said.