The massive drop in profits was due to an unsold stock of about 20 lakh kg of tea, which had been earmarked for export to Iran.

The net sales of the company also dropped to Rs 20.74 crore during the third quarter (Rs 39.82 crore). Profit before tax was Rs 5.19 crore (Rs 18 crore).

AFT, in order to strengthen exports in the current year, had struck a new export deal with Iran. Last year, the company's total exports were in the region of 10 lakh kg.

In fact, AFT was the only Indian company which had bagged a contract to export tea, of about 6.79 lakh kg, to Iran early this fiscal. This happened to be the largest amount of tea exported to Iran by any Indian company. The deal was made duringa visit by an Iranian delegation, which included a high-level state official of GTC, the Iranian trade authority. He had come to contract fresh deals and settle the unfulfilled ones of the previous year.

AFT had reported a net profit of Rs 24 crore and net sales of Rs 103.89 crore for the year to March 31, 1998.