Mcleod Russel India Limited — Important, 13-02-2025: Financial Result Updates

**McLeod Russel India Limited Financial Summary**

McLeod Russel has announced a board meeting to discuss the financial results for the quarter and nine months ended December 31, 2024. For the quarter, the consolidated revenue from operations is reported at ₹37,056 lakh, reflecting an increase from ₹34,862 lakh YoY, driven by higher tea sales in India and Uganda and operational improvements. However, net profit stands at a loss of ₹8,733 lakh, compared to a profit of ₹8,454 lakh in the previous year. This loss translates to an Earnings Per Share (EPS) of ₹(8.35), compared to ₹8.09 YoY, influenced by increased operational costs and falls in crop yields due to adverse weather.

Expenses increased to ₹47,408 lakh from ₹45,222 lakh, with significant contributions from employee benefits and finance costs. Employee benefits grew to ₹20,194 lakh, reflecting ongoing pressures in workforce management and salary commitments. The company saw operational challenges, primarily in the tea segment, affecting cost efficiency and profitability.

The balance sheet indicates liquidity stress, with current liabilities surpassing current assets. The pending resolution of inter-corporate deposits of approximately ₹2,76,109 lakh poses a risk to liquidity, and the company remains under considerable financial pressure. Market sentiment is cautious, compounded by ongoing restructuring efforts, including debt assignment to an Asset Reconstruction Company (ARC).

Given the ongoing losses and market conditions, investors may consider holding positions while monitoring developments in financial restructuring and operational recovery initiatives.