This is one of the largest tea companies in the world – it produces one fifth of the total tea in Assam, owning some 57 tea estates across Assam and West Bengal, with some estates as old as 140 years. It provides employment to some 1,10,000 people and makes some 100 million kgs of tea per annum.

For Q3FY16, as usual costs took a toll on the bottomline. Though the company’s net sales for the quarter grew 6% (YoY) at Rs.502 crore, its net profit fell 29% to Rs.57 crore. Costs were high, mainly on account of employee expenses – eating 37% of revenue earned. This cost rose 18% while raw material- which is green tea leaf costs rose 15%. Total operating costs were up 14%.

Domestic sales represents 64% of total sales and it declined 9% while exports was the money earner for the quarter – up 47%. EBITDA was down 26% while margins slipped from 22.62% to 15.73%. Its other income was up 113% but so was interest outgo – up 40%.