HARRMALAYA - Harri. Malayalam

📊 NSE: HARRMALAYA 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 22:49

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 5.28% YoY to INR 513.91 Cr in FY 2024-25 from INR 488.12 Cr. Total revenue including other income reached INR 525.73 Cr, up 5.81% YoY. Growth was primarily driven by increased realizations in the tea and rubber segments due to favorable product prices.

Profitability Margins

The company achieved a significant turnaround, reporting a Total Comprehensive Income of INR 10.26 Cr in FY 2024-25 compared to a loss of INR 12.27 Cr in the previous year. Return on Net Worth improved from -5.20% to 9.85% due to enhanced operational performance and effective cost management.

EBITDA Margin

Operating profit before working capital changes for the period ended September 30, 2025, was INR 10.64 Cr, a 94.8% increase from INR 5.46 Cr in the previous period. This improvement reflects higher realizations from tea and rubber sales.

Capital Expenditure

Historical capital expenditure includes INR 5.02 Cr for the purchase of property, plant, and equipment and INR 6.37 Cr for replanting expenses. Capital work-in-progress as of September 30, 2025, stood at INR 97.50 Cr.

Credit Rating & Borrowing

Liquidity is rated as 'Adequate' by credit agencies. The company raised INR 12.50 Cr through Inter-Corporate Deposits (ICDs) to support liquidity. Finance costs for the period were INR 6.43 Cr, down slightly from INR 6.56 Cr YoY.

⚙️ Operational Drivers

Raw Materials

Key operational inputs include land for plantations (Cultivation rent: INR 1.72 Cr) and biological assets for replanting (Replanting expenses: INR 6.37 Cr).

Capacity Expansion

Current Property, Plant, and Equipment (PPE) is valued at INR 291.69 Cr. Capital work-in-progress of INR 97.50 Cr indicates ongoing development and maintenance of plantation assets.

Raw Material Costs

Replanting expenses represent a significant operational cost at INR 6.37 Cr. Cultivation rent decreased 19.2% YoY to INR 1.72 Cr from INR 2.13 Cr.

Manufacturing Efficiency

Operational performance improved significantly, leading to a turnaround in Return on Net Worth to 9.85% from -5.20%.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through improved operational performance, effective cost management, and leveraging favorable price cycles in the tea and rubber markets. The company also focuses on replanting (INR 6.37 Cr spent) to maintain long-term productivity.

Products & Services

The company produces and sells Tea and Rubber.

Brand Portfolio

Harrisons Malayalam (HML).

Strategic Alliances

The company derives financial flexibility from being part of a strong promoter group (RP-Sanjiv Goenka Group), which provides funding support through ICDs.

🌍 External Factors

Industry Trends

The plantation industry is currently seeing favorable product prices for tea and rubber, though it remains cyclical and dependent on weather conditions and global demand-supply balances.

Competitive Moat

The company's moat is built on its established plantation assets (INR 291.69 Cr in PPE) and its strong parentage, which provides critical liquidity support (INR 12.50 Cr ICD raised) during periods of continued losses.

Macro Economic Sensitivity

Highly sensitive to international commodity prices and domestic rainfall patterns. Rainfall variability directly impacts crop yields and quality.

Geopolitical Risks

Domestic commodity prices are influenced by international market trends, making the company vulnerable to global trade dynamics and price volatility.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with SEBI Listing Regulations, specifically Regulations 16, 24, and 33, regarding material subsidiaries and financial reporting standards (Ind AS 34).

Taxation Policy Impact

The company follows Ind AS 12 'Income Taxes', recognizing deferred tax assets and liabilities on temporary differences. Direct taxes paid (net of refunds) were nil in the current period vs INR 0.38 Cr in the previous period.

Legal Contingencies

The company has recorded provisions of INR 30.38 Cr as of September 30, 2025, up from INR 29.76 Cr in the previous year. Specific pending court case values are not detailed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include weather-related productivity drops (rainfall) and international commodity price volatility, which lead to variability in profitability and cash flows.