Kanco Tea Reports Quarterly Loss of ₹866 Lakhs in Standalone Results

KanCo Tea & Industries , a prominent player in the tea industry, has reported a substantial loss for the quarter, reflecting the seasonal nature of the tea business.

Financial Performance

The company's standalone financial results paint a challenging picture:

KanCo Tea's standalone revenue from operations witnessed a sharp decline to ₹360.00 lakhs in the current quarter, compared to ₹1,306.00 lakhs in the previous quarter. This significant drop in revenue led to a standalone net loss of ₹866.00 lakhs, a stark contrast to the profit of ₹211.00 lakhs in the preceding quarter.

Consolidated Results

The consolidated financial results mirrored the standalone performance:

• Net loss of ₹978.00 lakhs, compared to a profit of ₹223.00 lakhs in the previous quarter
• Consolidated revenue from operations fell to ₹360.00 lakhs from ₹1,306.00 lakhs
• Consolidated Earnings Per Share (EPS) turned negative at ₹(19.09)

Seasonal Impact and Auditor's Note

The company emphasized that the tea business is seasonal, cautioning that the current period figures should not be considered indicative of full-year results. This sentiment was echoed in the auditor's report, which highlighted that no provision for income tax was made due to the seasonal nature of the business.

Looking Ahead

While the quarterly results show a significant downturn, it's important to note that the tea industry often experiences fluctuations due to seasonal factors. Stakeholders will be keenly watching how KanCo Tea navigates these challenges in the coming quarters and whether it can capitalize on the typically stronger periods in the tea production cycle.

The company's ability to manage costs, improve operational efficiencies, and potentially diversify its revenue streams may be crucial in mitigating the impact of seasonal variations on its financial performance.