Thaindian News

Kolkata, July 25 (IANS) A higher price of tea in the market during the current financial year is likely to help in protecting the bottom line of city-based Jay Shree Tea and Industries, a B.K. Birla Group company, a company official said Wednesday.

Lower crop production in Assam, Dooars and Terai had pulled down the net profit of the company during the last fiscal.

Better quality of the brew this fiscal helped the tea major fetch higher returns despite inflationary pressure and global economic environment.

“Average tea prices during the current fiscal are up by Rs.53 a kg against an industry average of Rs.20 a kg,” Jay Shree Tea and Industries managing director D.P. Maheshwari said during the company’s annual general meeting here.

According to the company’s annual report, last year prices of the Assam tea was down by Rs.7 a kg, while that of Dooars and Terai was down by Rs.4 a kg.

“We are expecting the overall production to be down by 15-20 million kg by the end of July, while we are down by 1.5 million kg during the April-June (2012) period,” Maheswari said.

During the last financial year the company had produced 23.76 million kg of the brew against 24.14 million kg in 2010-11, registering a 1.5 percent slide.

Dry weather conditions at the beginning of the year and heavy showers during the monsoon, however, have impacted production of tea this year.

Net profit of the company in 2011-12 decreased to Rs.14.32 crore against Rs.46.31 crore in 2010-11. Total revenue of the company, however, was higher at Rs.617.54 crore during the last fiscal against Rs.493.24 crore in the previous fiscal.