Mcleod Russel clocks loss of ~94.9 cr

Total income of the firm in Q1 was at ~196.40 cr, down by 28%

Mcleod Russel India, the bulk tea producer of Williamson Magor group, posted consolidated pre-tax loss before exceptional items of ~94.90 crore in the June quarter, becsue of crop loss and nationwide lockdown to contain the Covid-19 pandemic.

In the same period last year, pre-tax loss before exceptional items was at ~101.56 crore.

Total income for the quarter was at ~196.40 crore, down by 28 per cent, while net loss stood at ~90.52 crore as against a loss of ~11.64 crore in the corresponding period of last year.

Tea prices surged on account of supply mismatch and was expected to reflect in the next two quarters. Mcleod said though the operational performance had improved over the period, the financial position continued to be under stress. It continued to face challenges with the inter-corporate deposits (ICDS). The company’s notes to accounts mentioned that ICDS given to various group companies to provide them funds for strategic reasons for meeting their various obligations along with interest were outstanding as on date.

These have resulted in mismatch of Mcleod’s current resources vis-a-vis its commitments and obligations and liquidity constraints, causing hardship in servicing the shortterm and long-term debts and meeting other obligations, it said. Auditors, too, flagged ICDS aggregating ~2,868.81 crore as of June 30 and mentioned that they were doubtful of recovery.