TEA
Performance
Rossell Tea Ltd. has excelled in producing of high quality orthodox teas and its produce has become a bench mark for the industry. The Company is also consistently producing high quality CTC teas. Rossell Tea Ltd. continued to build on the good performance of the recent past and achieved price averages which were among the highest in the industry. With consistent quality levels the Company outperformed the market. The Company’s average for its produce for the year 09 – 10 was Rs.159.68 per kg. as against Rs.128.46 for the year 08 – 09 , an increase of Rs. 31.22 per kg. or 24.30% in 09-10 over that of 08-09. The average for Assam for the year 09-10 stood at Rs.121.06 per kg. The averages fetched by the Company reflect the high quality standards achieved over the years. The company maximized production of orthodox teas, which constitute nearly 80% of its annual production.
The turnover from the tea business of the Company went up to Rs. 6,807 lacs in the year 09 - 10 from Rs. 5,363 lacs in the year 08 - 09, an enhancement by Rs. 1,444 lacs. i.e. +27%, the highest achieved so far by the company.
As a result of remunerative price realization, the Company has more than doubled its profit before interest and tax to Rs. 2,279 lacs for the year ended March 31, 2010 against Rs. 1,128 lacs for the previous year ended March 31,2009 This is despite the escalating costs on all fronts for various inputs including higher wages, which continues to put severe inflationary pressure on the cost of production.
Prospects
Rossell Tea is confident of maintaining its high standards, production of high quality teas and continuing its profitable performance.
Aviation Products and Services
Background
Over the recent years Govt. has opened the defence sector for private participation. As per the new Defence Procurement Procedure, it has become mandatory that 30% offset work has to be executed in India against all contracts which are awarded to overseas companies and valued above Rs.300 Crores. In higher value contracts, offset / sub contract work share is further enhanced to 50% of the work to be done in India.
Compliance of this offset is a pre requisite for the foreign company, prior to execution of the entire contract. Offsets are likely to be $ 10 billion in the next five years.
Because of this emerging opportunity for private participation in Defence, Rossell has setup Aerotech Services and acquired Vankesh Avionics Technologies a division of Rossell and Sigma Microsystems a subsidiary of the Rossell.
Aerotech Services specializes in customer, product and maintenance support services and also installation and integration of equipment on board various platforms.
Aerotech has signed long term agreements with multi national companies for providing product support services for their equipments fitted on various aircrafts, helicopters and ships in India. It is also involved in integration and installation of navigation equipments at more than 50 different locations all over India.
Vankesh Avionics Technologies became a division of Rossell in Sept’08 and was primarily involved in design and development. However, since Rossell’s take over, it has been converted into a production unit. Its main thrust areas are harness and loom manufacturing, testing and integration, system integration, design and development of Automatic Test Equipments (ATEs) for ground testing of aircraft and spacecraft sub-systems.
Sigma Microsystems specializes in embedded software technology, solid state flight data recorders, missile controllers, PC based test rigs / equipments and system / process simulation.
Performance
During the year 2009-2010, the Turnover of the Group from Aviation Products and Services was Rs. 1,209 lacs as against Rs. 595 lacs in the year 2008-2009, indicating a growth of more than 103%. The profit before interest and tax also increased substantially to Rs. 376 lacs as against a breakeven factor for the previous year.
Prospects
We are confident that the Company will continue to perform well in its Aviation Products and Services business in coming years also in view of the great potential for this business.
Consolidated Results
Consolidated Turnover of the Company in 09 – 10 was Rs.7,994 lacs vis-à-vis Rs.5,956 lacs in 08 – 09 (+34%) and Profit Before Tax and Interest in 09 – 10 was Rs.2,656 lacs vis-à-vis 1,124 lacs in 08 – 09 (+136%) and the Net Profit in 09 – 10 was Rs.1,887 lacs vis-à-vis Rs.637 lacs in 08 – 09 (+196%).
Dividend
The Board of Directors of the Company has recommended a Dividend for the year of 20% on the Equity Share Capital of the Company, inclusive of Interim Dividend of 10% paid earlier.
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