💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 12.8% YoY to INR 929.44 Cr. Instant Tea export volumes grew 10.8% to 0.41 million kg from 0.37 million kg. Packet tea and bulk tea segments contributed to the remaining revenue, though specific % growth for these sub-segments was not disclosed.

Geographic Revenue Split

The company operates 18 gardens across 10,311 hectares, with 73% of the area in the Dooars region and 9% in Darjeeling (West Bengal), and the remainder in Assam.

Profitability Margins

Net Profit Margin improved by 126% YoY, turning positive with a profit of INR 20.06 Cr compared to a loss of INR 69.30 Cr in FY24. Operating profit margin saw a 212% variance due to better realizations and cost control.

EBITDA Margin

Operating profit recovered significantly from an operating loss of ~INR 6.0 Cr in FY24 to a positive trajectory in FY25, driven by a 212% variance in operating margins and disposal of specified estate assets.

Capital Expenditure

No major debt-funded capital expenditure or acquisitions were planned for the current fiscal. Historical capex was not explicitly detailed in INR Cr, but the company focused on asset disposal to generate cash flow.

Credit Rating & Borrowing

Credit rating reaffirmed at [ICRA]A (Stable) for long-term and [ICRA]A2+ for short-term. Total rated amount is INR 164.00 Cr, with cash credit/WCDL limits of INR 155.00 Cr.

⚙️ Operational Drivers

Raw Materials

Green leaf (sourced from own gardens and bought leaf) is the primary raw material. Labor costs are a critical driver, with wage hikes implemented in Assam (Oct '23) and West Bengal (June '23) impacting the cost structure.

Import Sources

Raw materials are primarily sourced domestically from the company's 18 gardens and local growers in West Bengal and Assam.

Key Suppliers

Not disclosed in available documents; however, the company relies on its own tea gardens and local small tea growers for green leaf procurement.

Capacity Expansion

Current capacity includes 18 gardens across 10,311 hectares and 22 factories, including tea-blending units and an instant tea plant. No specific expansion timeline was disclosed.

Raw Material Costs

Raw material and production costs were impacted by wage hikes and a 11.89% decline in output in the Dooars region, leading to higher unit costs of production.

Manufacturing Efficiency

Manufacturing efficiency is linked to garden productivity; however, crop levels were muted in Assam and Dooars during the previous cycle, impacting fixed-cost absorption.

Logistics & Distribution

Distribution costs are influenced by geopolitical turmoil affecting international tea exports, which reached an all-time high of 0.41 million kg for instant tea.

📈 Strategic Growth

Expected Growth Rate

12.8%

Growth Strategy

Growth is targeted through increasing high-margin instant tea exports (currently at an all-time high), cost control measures, and optimizing the estate portfolio through the disposal of specified assets to improve the debt-equity ratio by 45%.

Products & Services

Bulk tea, packet tea, instant tea, and tea-blending services.

Brand Portfolio

Goodricke.

New Products/Services

Instant tea exports are a key growth area, achieving a 10.8% volume increase to 0.41 million kg.

Market Expansion

Focusing on international markets for instant tea exports to mitigate domestic bulk tea price cyclicality.

Strategic Alliances

The company operates with group entities Amgoorie India Limited, Stewart Holl (India) Limited, and Koomber Tea Company Private Limited.

🌍 External Factors

Industry Trends

The Indian tea industry is facing regional production contractions (11.89% in Dooars) and rising fixed costs due to mandatory wage hikes, shifting focus toward value-added products like instant tea.

Competitive Landscape

Competes with other bulk and packet tea producers in India; market dynamics are influenced by global demand-supply and international pricing.

Competitive Moat

Moat is derived from an established position in the bulk tea industry and a sizeable scale of 10,311 hectares, supported by a diversified revenue stream that offsets domestic bulk tea risks.

Macro Economic Sensitivity

Highly sensitive to agricultural cycles and international tea prices, which influence domestic bulk tea realizations.

Geopolitical Risks

Geopolitical turmoil was cited as a primary factor affecting international trade and export logistics during the year.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Tea Act and regional labor laws regarding mandatory wage rates in Assam and West Bengal.

Taxation Policy Impact

Tax expense for FY25 was INR 6.01 Cr compared to a tax credit of INR 3.68 Cr in FY24.

Legal Contingencies

The Independent Auditor’s Report for the year ended March 31, 2025, contained no qualifications, reservations, or adverse remarks.

⚠️ Risk Analysis

Key Uncertainties

Agricultural commodity price volatility and weather-related crop losses (e.g., Dooars contraction) pose significant risks to profitability.

Geographic Concentration Risk

High concentration in West Bengal, with 82% of cultivated area (73% Dooars, 9% Darjeeling) located in the state.

Third Party Dependencies

Dependency on small tea growers for 'bought leaf' to supplement own garden production.

Credit & Counterparty Risk

Liquidity is adequate with undrawn working capital limits of INR 75 Cr and a free cash balance of INR 14.5 Cr as of March 2024.