Bormahajan Tea FY24 Financial Highlights

29 October 2024

• Revenue and Profitability: Bormahjan Tea Company Ltd reported a Total Revenue of ₹30.3 crore in FY24, reflecting a decline of 10.5% from ₹33.8 crore in FY23. The company’s Profit After Tax (PAT) turned negative in FY24, recording a loss of ₹2.6 crore, a significant drop from a profit of ₹0.3 crore in FY23. Consequently, Earnings Per Share (EPS) also plummeted, decreasing from 21.3 in FY23 to -211.6 in FY24, indicating a severe decline in profitability.
  
• Financial Position: The company’s Total Assets increased by 4.1% from ₹50.5 crore in FY23 to ₹52.6 crore in FY24, showing modest asset growth. However, Total Equity dropped by 15.4%, decreasing from ₹17.6 crore in FY23 to ₹14.9 crore in FY24, reflecting financial strain. This reduction in equity, alongside deteriorating profitability, suggests heightened vulnerability in maintaining financial stability.
  
• Future Prospects: Bormahjan Tea Company Ltd faces multiple challenges that could impact its future growth and profitability. The company has been hit by declining revenue and significant losses, which may persist if market conditions do not improve. With increasing competition in the tea industry, along with the volatility in tea prices and potential rising costs, Bormahjan faces pressure on both its top and bottom lines. While the growth in assets signals some resilience, the decline in equity and profitability highlights the need for strategic shifts to regain stability and explore growth avenues.