From the Annual Report

Rossell Tea produces some of the finest CTC and Orthodox Tea, exported to many countries like Canada, UK, Germany, Netherland, UAE, Saudi Arabia, Egypt etc.
Rossell Techsys offers value added services for leading global OEMs in Aerospace & Defence, for both military and commercial platforms. We cater to different platforms such as fighters, trainers, helicopters, unmanned ground vehicles, unmanned aerial vehicles, rockets, battle tanks, commercial jets and aero engine derivatives. We serve both the export and domestic sector. Major exports (~80%) are to USA, Europe and Israel. Rossell Techsys is specialized in Build to Specifications (BTS) and Build to Print (BTP).

To summarize, we anticipate the production being lower than last year due to adverse weather conditions and the increased testing of teas will restrict the use of chemicals. CTC prices may be somewhat similar to last year but marginally better for us owing to our compliance and quality. The orthodox prices will be better than the previous year. The biggest challenge will be to protect the crop and rein in the escalating costs particularly wages and fuel.

The total Operational revenue for the financial year 2023-2024 stands at 216.88 Crores, an increase of around 16.32% over the previous fiscal year 2022-2023. The Division added confirmed orders worth 638.00 Crores and confirmed strategic agreements worth around ` 2,800 Crores

The Operating Profit before depreciation and interest (EBITDA) of the Rossell Tea Division for the year was 1,198.59 lakhs as against 3,007.59 lakhs in the previous year. At the same time the Operating Profit before depreciation and interest (EBITDA) of the Rossell Techsys Division for the year was 3,553.36 lakhs as against 3,127.04 lakhs in the previous year. With the strong financial fundamentals over the year, the financial base of your Company remains strong, and it shall be further strengthened with better operating and financial performance in the years ahead, subject to the impact of demerger process being in progress at this stage.

Soft copy of the approved order of the scheme of amalgamation has been uploaded on the NCLT website on 02/08/2024.

I understand that lease is shown as debt. And thats why my question is – why is interest payment so high?

A horizon of 10-12 years can balance the risk of investing in the current period of high valuations. There a few questions that need to be answered, though. What kind of market cap you want to invest in, do you have idea about the current sectors that are in vogue, do you want to buy value or growth, generally speaking, and how do you see the future growth of the market w.r.t to the inflows through mutual funds and economic situation etc. My point is that, what kind of a fall are you expecting after you buy, and how would you react to that fall and are you prepared to take the necessary action, if a big fall happens.

Markets can still go up for another year or two, or can fall for any reason before this calendar year. Mutual funds while not as risky as direct stocks, cannot escape the time correction, and it could be disappointing and frustrating to see the same NAV for many months or quarters. And if the allocated amount is large, as is your case, you may have to bear the opportunity cost.

Having time helps, but volatility can consume time and give a return we did not expect.

Agreed.

That thought occured to me as well, but never bothered to make the switch from phantom to Basilic.

I think I’ll wait for the numbers to come out, and at any point in time, I see numbers of basilic vastly better in than phantom, interms of growth rates. Then I may.

Coz at this point in time, phantom offers slightly better valuation comfort.

Though on hindsight one would have been better off to make the switch from phantom to Basilic a couple of months ago.