Tyroon tea company owns one tea plantation and processing facility for domestic sales – mainly supplying black tea. The company has reported consistent growth in revenues and profits over the last five years – generating about 4cr of operating profits on about 22cr of revenues in the last financial year while operating with minimal net debt of under 1.5cr (as at 31 st March, 2010). The business is monsoon dependent and also exposed to the risks of stubborn wage inflation (which is insensitive to economic reality) and cyclicality – dependent on supplies of Sri Lankan and Kenyan tea stocks. Management haven’t declared dividends in any of the last five years, which may be justified if management can maintain profitable growth over the long future.
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