Neelamalai Agro Industries Limited, a prominent player in the plantation sector, has reported a robust financial performance for the first quarter ended June 30. The company's standalone net profit after tax surged by 129% to Rs. 107.64 lakhs, compared to Rs. 46.98 lakhs in the same quarter of the previous year.

Financial Highlights

• Revenue from operations stood at Rs. 643.09 lakhs, slightly lower than Rs. 652.73 lakhs in the corresponding quarter last year.
• The company's total income, including other income, increased to Rs. 854.29 lakhs from Rs. 846.08 lakhs year-on-year.
• Basic earnings per share (EPS) more than doubled to Rs. 17.30 from Rs. 7.55 in the same quarter last year.

Consolidated Performance

On a consolidated basis, Neelamalai Agro Industries reported a net profit of Rs. 770.47 lakhs for the quarter. This significant increase can be attributed to the strong performance of its associate companies and joint ventures.

Key Financial Metrics

Other Developments

The Board of Directors, in their meeting held on August 14, also adopted a new policy on Prohibition of Insider Trading, demonstrating the company's commitment to maintaining high standards of corporate governance.

Business Outlook

Neelamalai Agro Industries primarily operates in the plantations sector. The company noted that quarterly results may not be indicative of full-year performance due to the seasonal nature of the business. This caveat highlights the importance of considering long-term trends in the plantation industry when evaluating the company's performance.

The significant increase in profitability, despite a marginal decrease in revenue, suggests improved operational efficiency and cost management by the company during the quarter. However, investors should consider the cyclical nature of the plantation business when assessing the company's long-term prospects.

As Neelamalai Agro Industries continues to navigate the challenges and opportunities in the plantation sector, its strong start to the fiscal year positions it well for potential growth in the coming quarters.

Neelamalai Agro Industries Ltd, a prominent tea plantation company, has announced a 300% dividend for the financial year, despite facing a challenging year with reduced profits.

Financial Performance

The company reported a significant decrease in profit after tax, which stood at ₹344.92 lakhs, compared to ₹2,087.51 lakhs in the previous year. This decline can be attributed to various factors, including a decrease in total income from ₹3,521.06 lakhs to ₹3,161.45 lakhs.

Tea Production and Sales

Production

• Current year: 13.14 lakh kg
• Average yield: 2,308 kg per hectare
• Previous year: 14.31 lakh kg
• Previous year average yield: 2,512 kg per hectare

Sales

• Current year average: ₹150.18 per kg
• Previous year average: ₹132.60 per kg

Dividend Announcement

Despite the challenging year, Neelamalai Agro Industries has declared a dividend of 300% (₹30 per share) on equity share capital. This amounts to a total payout of ₹186.62 lakhs.

Book Closure and Annual General Meeting

• Book closure dates: August 12 to August 18 (both days inclusive)
• Purpose: Dividend payment and 82nd Annual General Meeting
• Record date for equity shares: August 11

Future Outlook

While the company faced headwinds, the maintenance of a high dividend payout suggests confidence in its long-term prospects. The improvement in sale average price per kg of tea indicates a positive trend in market demand, which could bode well for future performance.

Investors and stakeholders will be watching closely to see how Neelamalai Agro Industries navigates the challenges in the tea industry and capitalizes on potential opportunities in the coming year.