Calcutta, Feb 7: Goodricke has posted a 248 per cent growth in net profit for 1997. The turnover has jumped more than 21 per cent to Rs 146 crore from Rs 120 crore in 1996.Announcing the results for the year to December 31, 1997, after the company's board meeting on Thursday, managing director S K Bhasin said 1997 has witnessed a remarkable turnaround in the fortunes of Goodricke Group Ltd, the third largest tea producer in the country.
The tea major produced nearly 17.5 million kg of tea in 1997 from its 17 gardens spread over North Bengal and Assam. About 74 per cent of the share capital of the company is held by its overseas principal, Lawrie Group Plc, UK. According to Bhasin, the company is making efforts to reduce its dependence on banks, especially after the Rs 9.7 crore interest charges incurred in 1996. "We possibly have to be conservative for another two years as far as dividends are concerned," he said. The company has recommended a 20 per cent dividend for 1997. "However, the debt-equityratio is much more attractive this year due to lower borrowings and a reduced interest burden is expected to further boost the profitability of the company," Bhasin said.
Tea production was affected in the first half of 1997 due to drought conditions. Moreover, the first flush was decimated and the second flush reduced in the Darjeeling gardens, "translating into a loss of nearly Rs 500 per kilogram", Bhasin said. "This was coupled with losses of almost Rs 2 lakh from the Orangajuli and Nonaipara gardens in Assam which were situated in the heart of Mangaldari district, a stronghold of the Bodo militants," he added.
Goodricke has reported exports worth Rs 23 crore in 1997 as against Rs 14 crore in 1996. Export earnings came mainly from hard currency areas and quality conscious buyers in Germany, UK and West Asia. The capital investment over the last five years has been around Rs 8.65 crore, largely from internal accruals.
May buy 5 gardens from Nepal Tea
The Goodricke Group is keen to acquirefive gardens of the Nepal Tea Development Corporation (NTDC).
Other tea majors like Hindustan Lever Ltd and Tata Tea are also eyeing these gardens following the Nepal government's plans to go in for privatisation.The deal is yet to be clinched by any tea company and dates for the final outcome have not been finalised.
Goodricke already has a presence in Nepal through its existing 50:50 joint venture company - Himalaya Goodricke Pvt Ltd. This has recorded higher production and sales and the future prospects seem to be promising, Bhasin said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
