However, income from operations during the year rose by over 4 per cent to Rs 922.12 crore from Rs 884.71 crore in the corresponding period last year. The board has already declared an interim dividend of 101 per cent for the year 1999-2000 and no final dividend has been recommended. Total expenditure during the year rose to Rs 768.85 crore from Rs 680.69 crore in the previous period.

The company release says, ``The entire north Indian tea growing regions were affected by a severe drought. The company's total production, the tea prices particularly in South India continued to prevail below last year's levels. There have also been increases in the cost of inputs and in staff cost arising out of industry-wide wage settlement. All these factors had an adverse impact on the company's results.''

Staff costs during the year have shot up to Rs 209.53 crore from Rs 179.74 crore. The consumption of raw materials has also shot up to Rs 209.40 crore from Rs 175.54 crore.

The other income of the company during the year increased to Rs 48.06 crore from Rs 16.48 crore during the year. This includes the profit on sales of investments and higher dividend received from a subsidiary company.

"In March 2000, the company acquired through a subsidiary company the entire shareholding of the Tetley Group, UK. To finance this large acquisition, the company issued 75,98,000 global depository shares at a price of Rs 428 which was fully subscribed. As a result of this issue, the equity share capital of the company has increased from Rs 48.62 crore to Rs 56.22 crore," the release adds.