Jay Shree Tea & Industries Ltd approves sale of Tukvar Tea Estate

The Board of Jay Shree Tea & Industries Ltd in their meeting held on 12th Janaury, 2023 approved sale of Tukvar (Puttabong) Tea Estate, Darjeeling alongwith its recently developed heritage bungalow resort known as Puttabong Tea Resort at a net consideration of Rs. 50 Crores (Rupees Fifty Crores Only). The Tea Estate is having a production of 1.80 lakh kg of premium Darjeeling Tea Per annum.

tn the said meeting the Board also approved demerger scheme of Sholayar / Kallyar Estate, Coimbatore and has tied up with a joint venture partner having sound business background in South lndia, who will invest Rs.44 Crores (Rupees Forty Four Crores Only) as their share of participation in the joint venture. Both Tea Estates manufactured around 11.35 lakh kg of South Indian Teas.

Now the Company will have tea production of around 156 lakh kg in its remaining Tea Estates located in Darjeeling, Dooars, Assam and Africa. In line with the improved performance of the fertilizer industry worldwide both the Chemical & fertilizer plants are doing well since last 2 years. Sugar & ethanol plant production is being raised by almost 50% in the current year achieving the break-even in profitability. Next year target is further growth of 5O%.

Both this sale and demerger shall strategically help in strengthening the financial performance of the Company.

In tough time of Tea industry, the Company is taking relentless steps to improve its performance and its revenue for the half year ended September,2022 was Rs.389 Crores against Rs.354.25 Crores and Profit after tax was Rs.34.73 Crores against Rs.23.91 Crores in the same period last year, an increase by more than 45%.

Shares of Jayshree Tea & Industries Limited was last trading in BSE at Rs. 102.55 as compared to the previous close of Rs. 104.30. The total number of shares traded during the day was 43960 in over 1183 trades.

The stock hit an intraday high of Rs. 108.90 and intraday low of 101.30. The net turnover during the day was Rs. 4637237.00.

Source : Equity Bulls

Keywords

JayshreeTeaandIndustries INE364A01020 Sale TukvarTeaEstate