Companies

Kaveri Seeds Q1 profit rises 28% to ₹295 crore

Our Bureau Hyderabad | Updated on August 13, 2020 Published on August 13, 2020

GV Bhaskar Rao, Chairman and Managing Director of Kaveri Seeds   -  Nagara Gopal@thehindu

Kaveri Seeds has posted a net profit of ₹295.29 crore in the first quarter ending June 30, 2020, as against ₹229.57 crore in the comparable quarter last year, showing a growth of 28.62 per cent.

The firm registered sales of ₹719.48 crore in the quarter as against ₹627.57crore in the same quarter last year, a growth of 14.64 per cent.

The earnings per share stood at ₹49.67 for the first quarter as compared to ₹36.37 in the comparable quarter previous year.

“Cotton acreage is down in key States like Maharashtra and Gujarat due to fall in prices and adequate stock in the market. This must have discouraged farmers to shift to soybean in Maharashtra and groundnut in Gujarat,” GV Bhaskar Rao, Chairman and Managing Director of Kaveri Seeds, has said.

“Maize acreage is down largely in Telangana as the State Government asked farmers not grow maize in the khairf. In States like Gujarat, the maize area is down because of the low prices,” he said.

“Even as business activity in most economies gradually resume, we at Kaveri Seeds have fully adapted to the ‘new normal’ and have seamlessly executed our operations in the last few months,” he said.

“We have over 40,000 distributors. We are adding new products to our portfolio. A robust product pipeline, strong inventory and investments made in research and development enabled us to ensure that the seeds reached the farmers well in time in spite of hurdles created during the pandemic,” he said.

“Maize and rice have contributed significantly to our profitability. Our investments in integrated seed conditioning plant and biotechnology labs have helped the company increase the germination vigour and longevity of the seeds,” he said.

“The biotechnology lab has fast paced the testing process making sure that the seeds reached the farmers on time in spite of the disruption caused by the pandemic,” he said.

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Published on August 13, 2020
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