Bulk tea producer McLeod Russel India Ltd has suffered a first-quarter loss of Rs 90.52 crore compared with a loss of Rs 11.64 crore a year ago.
The June quarter of last fiscal included an exceptional gain of Rs 90.70 crore.
Revenues stood at Rs 196.4 crore in the reporting quarter, down from Rs 245.83 crore as the nationwide lockdown disrupted tea plantation in April and partly in May. The crop loss has since created a shortage in the market, leading to tea prices going up and the company is expecting the next two quarters to be better.
The company, which is hoping for a resolution to its debt problem, acknowledged that while operational performance has improved, the financial position continued to be under stress.
The inter-corporate deposits worth Rs 2,868.81 crore given to various group companies to provide them funds along with interest are outstanding as on this date.
“These have resulted in a mismatch of current resources vis-a-vis its commitments and liquidity constraints, causing hardship in servicing short term and long-term debts and meeting other obligations,” it said.
