Mcleod Russel -FY10 VS FY09-IMPRESSIVE- ACQUISITIONS IN UGANDA

Mcleod Russel 

India Limited

FY10 VS FY 09 RESULTS

COMPARISON

Mcleod Russel is the world’s largest tea producer.

It produces over 80 million kilos of high quality tea a year from its tea estates in Assam, West Bengal and Vietnam.  Its  tea business directly employs over 80,000 people. Its FY 2010 results are declared and these are compared here, with FY 2009 results.

CONSOLIDATED RESULTS

COMPARISON

Mcleod Russel India Limited has produced excellent results in FY 10 compared to FY 09.

Consolidated Net Sales   has increased by 33.46% to Rs.1106 Crores from Rs.829 Crores YOY.

On the other hand the total Expenditure has increased by only 13.57 percent to  Rs.798 crores from Rs.703 Crores YOY.

The Consolidated Net Profit has increased by a whopping 176.65% to Rs.231Crores from Rs.83 Crores.

The consolidated Basic EPS has increased to Rs.21.1 on a face value of Rs.5 from last year’s Rs.7.63.

On a consolidated basis, this is considered an excellent performance.

Mcleod Russel -consol	FA10(lakhs)	FA09(lakhs)	Diff%Age
Net Sales	110620	82887	33.46
Other Oprtg Income	3052	2690	13.46
SIT & WIP	184	-453	-140.62
Raw Materials	23647	17754	33.19
Traded goods	-	-
Employees Cost	36584	32196	13.63
Depreciation	3230	3269	-1.19
Other Expenditure	16178	17519	-7.65
Total Expenditure	79823	70285	13.57
Profit-Operations	33849	15292	121.35
Other Income	433	38	1039.47
Interest	3773	5211	-27.6
Exceptional items	-	-
Tax Expense	7139	1555	359.1
Extraordinary Items	-	-
Net Profit	23370	8564	172.89
Minority Interest	-52	-
Shares of Associates	330	217	52.07
Other Related Items	-	-
Consolid.Net Profit	23092	8347	176.65
Dividend (%)	-	-
Face Value (in Rs.)	5	5	0
Paid-up Equity	5473	5473	0
Reserves	74691	56948	31.16
Basic EPS	21.1	7.63	176.54
Diluted EPS	21.1	7.63	176.54

STAND ALONE RESULTS

COMPARISON

On a stand alone basis, net Sales has increased by Rs.29.91 percent to Rs.1077 crores from Rs.829 Crores.

Total Expenditure has increased less than proportionately by 9.62 percent to Rs.767 Crores from Rs.699 Crores YOY.

Net Profit  has increased by 170.67 percent to Rs.240 crores from Rs.89 Cr YOY.

The stand alone Basic EPS has increased to Rs.21.96 from Rs.8.11 YOY.

Mcleod Nonconsol	FY10(lakhs)	FY09(lakhs)	Diff%age
Net Sales	107682	82887	29.91
Other Oprtg Income	3035	2690	12.83
SIT & WIP	734	-453	-262.03
Raw Materials	21417	17754	20.63
Traded goods	-	-
Employees Cost	36281	32196	12.69
Depreciation	2712	2604	4.15
Other Expenditure	15520	17838	-12.99
Total Expenditure	76664	69939	9.62
Profit-Operations	34053	15638	117.76
Other Income	435	38	1044.74
Interest	3395	5265	-35.52
Exceptional items	-	-
Tax Expense	7060	1532	360.84
Extraordinary Items	-	-
Net Profit	24033	8879	170.67
Dividend (%)	80	40	100
Face Value (in Rs.)	5	5	0
Paid-up Equity	5473	5473	0
Reserves	73388	54460	34.76
Basic EPS	21.96	8.11	170.78
Diluted EPS	21.96	8.11	170.78

QUARTERLY RESULTS

COMPARISON

The results for Q4 of FY 10 are still not available. Hence, the available results are given hereunder. In Q2 and Q3, there is a quantum jump in sales and profitability (and EPS).

The Basic EPS has been Rs.12.6 in Q3, Rs.17.56 in Q2 and Rs.2.85 in Q1, which together totals to Rs.33.01 for the 3 Quarters. But, as per stand alone annual results. Annual EPS is Rs.21.86. So, the Q4 of FY 10 seems to be a repeat of Q4 of FY 09 – where expenditure had far exceeded the sales and there was a Net loss n Q4 of FY 09..

Also, the company seems to have acquired a Ugandan company in January 2010.It is stated to be a profitable company. Its effect also is to be watched.

In any case, annual result is impressive compared to last year. With more profitable acquisitions and strong tea prices, the company can produce better results in future.

Mcleod Russel Qtrly	Dec-09	Sep-09	Jun-09	Mar-09	Dec-08
Net Sales	33583	34377	12081	20779	24364
Other Oprtg Income	1143	756	148	966	382
Total Expenditure	20526	15080	8122	28146	17717
Net Profit	13794	19219	3118	-8861	4859
Dividend (%)	-	-	-	40	-
Face Value- Rs	5	5	5	5	5
Paid Up Equity	5473	5473	5473	5473	5473
Basic EPS	12.6	17.56	2.85	-8.1	4.44
Diluted EPS	12.6	17.56	2.85	-8.1	4.44

ANNOUNCEMENTS TO

THE EXCHANGE

01-06-2010        Mcleod Russel India Limited has informed the Exchange regarding Information update for Financial results for the year ended March 31, 2010.

31-05-2010        Mcleod Russel India Limited has informed the Exchange that the Board of Directors of the Company held on May 30, 2010 has recommended dividend of Rs.4/- per share (80%) on the Equity Shares of Rs.5/- each for the financial year ended March 31, 2010.   -

18-01-2010        Mcleod Russel India Limited has informed the Exchange with reference to earlier announcement dated December 23, 2009 as follows: "On completion of the transaction envisaged in the Share Purchase Agreement entered into by Borelli Tea Holdings Limited (Borelli) with James Finlay Limited and James Finlay International Holdings Limited, both of U.K, Borelli has today taken over 100% of the equity capital of Rwenzori Tea Investments Limited, Uganda (Rwenzori). With this acquisition Borelli has gained control over James Finlay Uganda Limited (JFUL) which is a 100% subsidiary of Rwenzori. As a result of this acquisition Rwenzori and JFUL have become step down subsidiaries of the Company. JFUL is engaged in growing, manufacturing and marketing of black tea with annual turnover of 15 million kgs. produced in its six Tea Estates in Uganda. JFUL is a profit making and dividend paying Company".

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