💰 Financial Performance

Revenue Growth by Segment

Total revenue for three subsidiaries and two step-down subsidiaries was INR 10.14 Cr for FY25. Segment-specific percentage growth for Tea, Sugar, and Chemicals/Fertilisers was not explicitly detailed in the provided documents.

Geographic Revenue Split

The Group operates in India and overseas, with two subsidiaries of Birla Holding Limited (BHL) located outside India. Specific percentage splits by region were not disclosed.

Profitability Margins

Net profit per equity share (Basic & Diluted) for continuing and discontinued operations improved significantly to INR 43.81 in FY25 from INR 4.50 in FY24, representing an 873.5% increase. Total Comprehensive Income for the year reached INR 124.70 Cr compared to INR 24.13 Cr in the previous year.

EBITDA Margin

PBILDT interest coverage ratio improved to 1.09x in FY25 from -1.19x in FY24. Operating profit before changes in assets and liabilities was INR 44.93 Cr in FY25, a turnaround from a loss of INR 40.29 Cr in FY24.

Capital Expenditure

Purchase of Property, Plant & Equipment (including CWIP and Capital Advances) was INR 44.55 Cr in FY25, down 22.6% from INR 57.58 Cr in FY24. Sale of Property, Plant & Equipment generated INR 34.45 Cr in FY25.

Credit Rating & Borrowing

Overall gearing improved to 1.09x as on March 31, 2025, from 1.60x in the previous year. Total debt to gross cash accruals (TD/GCA) improved to 2.90x from 17.63x YoY. Total borrowings as of March 31, 2025, stood at INR 314.76 Cr (INR 67.99 Cr non-current and INR 246.77 Cr current).

⚙️ Operational Drivers

Raw Materials

Primary raw materials include green tea leaves and sugarcane. Biological assets (unplucked green leaves and standing sugarcane crops) are measured at fair value less cost to sell.

Raw Material Costs

Labour costs are a major component, representing approximately 33% - 34% of the total cost of sales in FY24. Inventory written off in FY25 was INR 0.08 Cr compared to INR 1.13 Cr in FY24.

Manufacturing Efficiency

The Group closed manufacturing operations at its fertiliser unit in Pataudi, Gurugram, in July 2024 to optimize the operational footprint.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through asset monetization (INR 100 Cr land sale), resumption of ethanol production from sugarcane juice and B-heavy molasses, and expected increases in government subsidies for the fertiliser division.

Products & Services

Tea, Sugar, Ethanol, and Fertilisers.

Brand Portfolio

Jay Shree Tea.

New Products/Services

Resumption of ethanol production from sugarcane juice and B-heavy molasses is expected to contribute to future revenue.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward ethanol production from sugarcane by-products and increasing reliance on government subsidies for fertiliser viability.

Competitive Moat

The company maintains a significant asset base in tea estates and integrated sugar/ethanol facilities, providing a cost-competitive production moat.

Macro Economic Sensitivity

The company is sensitive to government subsidy policies in the fertiliser sector and ethanol blending mandates.

Geopolitical Risks

The Group has operations in overseas subsidiaries, exposing it to international regulatory and economic shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to seasonal industry regulations and government subsidy frameworks for fertilisers. The company faced an audit trail non-compliance issue where the 'edit log' feature was not enabled at the Sugar unit and database level.

Taxation Policy Impact

The Holding Company has recognized Deferred Tax Assets (net) of INR 54.23 Cr as of March 31, 2025, based on unused tax losses and deductible temporary differences.

Legal Contingencies

The Group has pending litigations disclosed in Note 19 and Note 37 of the financial statements; specific case values were not provided in the snippets.

⚠️ Risk Analysis

Key Uncertainties

Recoverability of Deferred Tax Assets is a key audit matter due to the high degree of estimation regarding future taxable profits. Seasonality and labour intensity (34% of costs) remain primary business risks.

Geographic Concentration Risk

Significant operations are concentrated in India (Kolkata headquarters) with some exposure in overseas subsidiaries.

Third Party Dependencies

The Group relies on other auditors for the audit of three subsidiaries and two step-down subsidiaries representing assets of INR 63.25 Cr.

Technology Obsolescence Risk

The lack of an enabled audit trail at the Sugar unit and database level indicates a need for digital governance upgrades.

Credit & Counterparty Risk

Trade receivables increased by INR 13.59 Cr in FY25. Provision for doubtful receivables was a net reversal of INR 0.30 Cr.