Jay Shree Tea & Industries' Q1 FY 2025-26 Quarterly Results

Result Summary

• Jay Shree Tea & Industries Ltd reported a 27.6% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 17.3%.
• Its expenses for the quarter were down by 0.6% QoQ and up 16.4% YoY.
• The net profit decreased 40.3% QoQ and decreased 0.1% YoY.
• The earnings per share (EPS) of Jay Shree Tea & Industries Ltd declined at 3.1 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Jay Shree Tea & Industries Ltd is a prominent player in the tea industry, primarily engaged in the cultivation, manufacturing, and sale of tea. The company is one of the oldest and largest tea producers in India, with a significant presence in both domestic and international markets. Jay Shree Tea is known for producing a variety of teas, including premium orthodox teas and specialty blends. The company has a strong foothold in the tea industry, which is characterized by seasonal fluctuations in demand and supply, impacting both prices and production levels. Recent developments in the tea industry, such as changes in export tariffs and climatic conditions affecting crop yields, can influence the company's operations. However, specific recent events or strategic changes within Jay Shree Tea & Industries Ltd are not available in the provided data.

Revenue

In Q1FY26, Jay Shree Tea & Industries Ltd reported a total income of ₹195.73 crores, reflecting a 27.6% increase from the previous quarter (Q4FY25), where the total income was ₹153.41 crores. Compared to the same quarter in the previous fiscal year (Q1FY25), the revenue grew by 17.3%, from ₹166.84 crores. This significant rise in revenue indicates a positive trend in the company's income generation capabilities over the recent quarters. Such growth could be attributed to various factors, including increased sales volume, better pricing strategies, or expansion into new markets. However, without additional context regarding the company's strategic initiatives or market conditions, the exact reasons for this revenue growth remain unspecified.

Profitability

The profitability metrics for Jay Shree Tea & Industries Ltd highlight a challenging financial period. In Q1FY26, the company reported a loss before tax of ₹8.98 crores, which, while an improvement from the loss of ₹28.56 crores in Q4FY25, remained almost unchanged from the loss of ₹8.99 crores in Q1FY25. The company did not incur any tax expenses in Q1FY26, unlike Q4FY25, where a tax credit of ₹13.53 crores was recorded. Consequently, the profit after tax for Q1FY26 was a loss of ₹8.98 crores, improving from a loss of ₹15.03 crores in Q4FY25 but closely mirroring the loss of ₹8.99 crores in Q1FY25. The earnings per share also remained consistent at a negative ₹3.10, showing a QoQ improvement of 40.4% from Q4FY25, while remaining unchanged on a YoY basis. These figures suggest that while the company's losses have reduced quarter over quarter, the overall profitability remains a concern.

Operating Metrics

The operating metrics for Jay Shree Tea & Industries Ltd, as reflected in the total expenses, show a marginal decrease of 0.6% QoQ from ₹206.04 crores in Q4FY25 to ₹204.71 crores in Q1FY26. Year-over-year, the total expenses increased by 16.4% from ₹175.83 crores in Q1FY25. This trend of rising expenses could reflect changes in the cost of production, labor, or raw materials, which are common in the agricultural sector. Despite the company's efforts to manage expenses, the increase in total income outpaced the rise in expenses, resulting in a smaller operating loss relative to the previous quarter. However, the sustained level of expenses indicates a need for continued focus on cost management to achieve better profitability outcomes in the future.