Parry Agro Unlisted Shares
Buy - ₹N/A
Sell - ₹N/A
About Parry Agro Unlisted Shares
1. About Parry Agro Industries
Parry Agro Industries, part of the esteemed Murugappa Group, is a prominent player in the Indian tea industry. Established as one of the largest producers of CTC, Orthodox, Organic, and Green teas, the company has earned a reputation for its high-quality products and commitment to sustainability. Parry Agro operates in some of the most fertile tea-growing regions of India, producing premium teas in regions such as South India and Assam. With a strong legacy of over 50 years, the company is known for its estates in the Annamalai Hills, Nilgiris-Wayanad region, and Assam, cultivating over 3,210 hectares of land and producing around 14 million kilograms of tea annually. The Murugappa Group’s broad presence across multiple sectors, including agriculture, manufacturing, and finance, supports Parry Agro’s operations, ensuring long-term growth and stability.
2. Business Divisions
Parry Agro operates through several key business divisions that allow the company to serve a diverse range of customers in the tea industry:
- Organic Tea: Parry Agro is a pioneer in organic tea production, committed to sustainable farming practices. The company’s estates, including Paralai Estate and Iyerpadi Factory, are certified organic under global standards like IMO, NOP (USA), and NPOP (India). These estates avoid inorganic farming methods and instead use natural pest control and bio-nutrients, ensuring high-quality organic tea for health-conscious consumers.
- Conventional Tea: Alongside its organic tea division, Parry Agro produces conventional teas that adhere to the Tea Board of India’s Plant Protection Code (PPC). These plantations are Trustea-certified, ensuring that the entire process from cultivation to manufacturing meets stringent sustainability standards.
- Tea Estates: Parry Agro operates multiple tea estates across South India and Assam, known for producing premium teas. Estates such as Sheikalmudi, Murugalli, Paralai, and Attikunna are recognized for producing high-quality CTC and Orthodox teas, contributing to the company’s reputation as a leading tea producer.
3. Financial Highlights
Here are the key financial highlights for Parry Agro, based on its recent P&L statement:
- Revenue Growth:
In FY 2024, Parry Agro reported ₹233 crore in revenue, marking a positive increase from ₹216 crore in FY 2023. This growth reflects the company’s ability to drive sales despite challenges in other areas of its business. - Gross Margins:
The company maintained strong gross margins of 72.1% in FY 2024, slightly improving from 71.76% in FY 2023. This indicates Parry Agro’s ability to control production costs effectively, despite rising expenses in certain areas. - EBITDA and Operating Profit Margins (OPM):
Parry Agro recorded an EBITDA of -₹11 crore in FY 2024, indicating a loss in operating profits. Its operating profit margin (OPM) stood at -4.72%, which marks a decrease from the previous year. The negative EBITDA reflects challenges in controlling costs, which have hindered profitability. - Net Profit After Tax (PAT):
The PAT for FY 2024 was -₹7.5 crore, further demonstrating the company’s struggles with profitability. The negative net profit margin (NPM) of -3.22% highlights the need for cost-cutting measures and improved operational efficiency. - Earnings Per Share (EPS):
Parry Agro posted an EPS of -₹20 in FY 2024, which was lower than the -₹10.67 reported in FY 2023. The decline in EPS reflects the company’s ongoing financial challenges and its inability to return to profitability in the short term.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Premium Quality Tea: High-quality organic and conventional teas ensure consistent demand in both domestic and international markets.
- Sustainability Focus: Eco-friendly cultivation and organic farming practices appeal to environmentally-conscious consumers.
- Experienced Workforce: Skilled management team with decades of expertise helps adapt to market trends and consumer demands.
Cons
- Declining Profitability: Recent financial losses and declining profitability may limit reinvestment potential for growth.
- High Employee Expenses: Increased employee benefit costs have negatively impacted profit margins, requiring better cost management.
- Dependency on Tea Cultivation: Over-reliance on tea sector exposes the company to risks from climate change and market fluctuations.
