💰 Financial Performance

Revenue Growth by Segment

The Tea division's Total Operating Income (TOI) was INR 49.52 Cr in FY23, representing a 10% decline from INR 55.15 Cr in FY22. However, in FY25, production volume grew by 24.56% to 20.69 lakh kgs and sales volume increased by 25.06% to 20.56 lakh kgs. The Textile division was discontinued in FY22, and the Real Estate division is being liquidated through asset sales.

Geographic Revenue Split

100% of the company's tea production is concentrated in Upper Assam, India, where it operates three estates (Ananda, Pathalipam, and Bordeobam) covering 626 hectares.

Profitability Margins

The Net Profit Ratio surged by 2,698.64% in FY25 due to the execution of disposal transactions for discontinued operations. In FY23, the PBILDT margin was a thin 0.06% (adjusted to 8.36% excluding inventory losses) compared to 18.07% in FY22. The moderation was driven by lower sales realizations and adverse climatic conditions.

EBITDA Margin

PBILDT margin was 0.06% in FY23, a significant drop from 18.08% in FY22. The decline was attributed to lower sales realizations and an inventory loss on land held under the Real Estate Division to arrive at its Net Realizable Value.

Capital Expenditure

The company has focused on monetizing non-core assets rather than major new CapEx, including the sale of 'Asarwa House' for INR 31 Cr in FY22 and a land parcel in Dholka in May 2023. Surplus funds are being invested, contributing to a Current Ratio of 12.00 in FY25.

Credit Rating & Borrowing

The company's long-term bank facilities were rated CARE BBB-; Stable. The rated amount was reduced from INR 22.00 Cr to INR 8.00 Cr before the rating was reaffirmed and withdrawn in July 2023 at the company's request. The company maintains a comfortable capital structure with an overall gearing of 0.06x as of March 31, 2023.

⚙️ Operational Drivers

Raw Materials

Green tea leaves (sourced from own estates and small growers) and Labor (representing 40% to 50% of total tea division expenditure).

Import Sources

100% of raw materials (green leaves) are sourced domestically from the company's own 626-hectare plantation and local small growers in Upper Assam.

Key Suppliers

The company procures green tea leaves from local small tea growers in Assam to supplement its own estate production.

Capacity Expansion

The current installed capacity is 24 lakh kilograms of black tea per annum as of March 31, 2023. Production in FY25 reached 20.69 lakh kgs, representing a capacity utilization of approximately 86%.

Raw Material Costs

Labor costs are the primary operational expense, accounting for 40-50% of total costs. Average tea realization increased by 8.31% YoY to INR 261.31/kg in FY25, helping offset rising production costs.

Manufacturing Efficiency

Production efficiency improved in FY25 with a 24.56% increase in output. The company processes both CTC and Orthodox varieties of black tea.

Logistics & Distribution

The company sells black tea through reputed customers with established brands and through auction platforms.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth is driven by the monetization of non-core assets (Asarwa Mill and Dholka land) to maintain a net debt-free position and reinvesting in the tea division. The company is focusing on high-quality Orthodox teas to capture better realizations in export markets like Russia, Iran, and the UAE.

Products & Services

Black Tea (CTC and Orthodox varieties) and Real Estate (liquidation of non-core land parcels).

Brand Portfolio

The company sells tea to reputed customers with established brands; specific proprietary brand names for retail are not disclosed.

New Products/Services

Innovation in flavors, packaging, and specialty blends is expected to drive future growth, though specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Targeting export markets for Orthodox teas, specifically Russia, Iran, and the UAE, where better realizations are expected.

Market Share & Ranking

India produced 1,297 million kgs of black tea in FY25; BTFL's production of 2.069 million kgs represents approximately 0.16% of national production.

Strategic Alliances

The company participates in ATISIS/TRUSTEA programs for specialty and orthodox tea development.

🌍 External Factors

Industry Trends

The Indian tea industry is evolving toward herbal and specialty segments driven by wellness trends. All-India average tea prices rose 22% in FY25 to INR 201.39/kg due to lower overall crop yields.

Competitive Landscape

Competes with other large tea plantation companies in Assam and cheaper imports that put pressure on domestic realizations.

Competitive Moat

The company's moat is based on its 40-year operational track record and its location in Upper Assam, India's premier tea-growing region, which ensures access to high-quality green leaves.

Macro Economic Sensitivity

Highly sensitive to global tea prices and domestic consumption trends. Per capita consumption in India remains lower than global peers.

Consumer Behavior

Shifting toward wellness-oriented products, increasing demand for herbal, specialty, and flavored tea blends.

Geopolitical Risks

Export potential is linked to the geopolitical stability of key markets such as Iran and Russia.

⚖️ Regulatory & Governance

Industry Regulations

Tea plantation labor wages are strictly regulated and revised by government authorities, directly impacting the company's largest cost head (40-50% of total expenditure).

Environmental Compliance

The company is susceptible to climate change and global warming, which have led to unpredictable weather patterns affecting harvest quality.

Taxation Policy Impact

The company noted a non-recurring impact on ratios due to the non-consideration of Income Tax for earlier years.

Legal Contingencies

The company reported 4 investor complaints during FY25, with 3 resolved and 1 pending as of March 31, 2025. Specific values for pending court cases are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Climatic volatility (floods/droughts) and labor availability/wage hikes are the primary uncertainties, with the potential to impact profitability by over 10-15% in adverse years.

Geographic Concentration Risk

100% of tea operations are concentrated in a single region (Upper Assam), making the company highly vulnerable to regional weather patterns and local labor strikes.

Third Party Dependencies

Moderate dependency on small tea growers to meet processing plant capacity beyond estate-grown leaves.

Technology Obsolescence Risk

Low risk for plantation crops, but innovation in processing (Orthodox vs CTC) is required to maintain market relevance.

Credit & Counterparty Risk

Low risk due to sales to reputed brands and the use of auction systems with short credit cycles.