The overall decline in YoY PAT is mainly attributed to the 20 per cent YoY wage hike that came into effect from April 2013, which increased the cost of production across all crops. Other income also contracted in FY14 to Rs.90 million, down 35.7 per cent YoY.
4QFY14 revenue stood at Rs.1.7 billion, up 35.2 per cent over the same quarter last year. PAT declined 9.3 per cent YoY to stand at Rs.123 million. The growth in revenue for 4QFY14 came on the back of higher volumes for both palm oil (+7.2 per cent YoY), and tea (+2.3 per cent YoY), the company explained.
Palm Oil segment registered a revenue growth of 5.2 per cent YoY to reach Rs.1.4 billion in FY14, which accounted for 22.3 per cent of the company’s revenue during the year. The Crude Palm Oil (CPO) production, the key contributor to company profitability, grew 9.0 per cent YoY, having made a net profit of Rs.633 million for FY14, the release stated.
Tea , the largest revenue contributor which accounted for over 66.7 per cent of the total revenue, increased 13.9 per cent YoY to Rs.4.2 billion in FY14, mainly on the back of improved tea prices in FY14.