Comments
Dhanuka Agritech, a leading manufacturer of agrochemicals, on Tuesday announced 15.22 per cent jump in consolidated net profit at ₹73.02 crore for the second quarter ended September, mainly on the back of higher income. The company had reported a net profit of ₹63.37 crore in the same quarter previous fiscal.
Net income increased 23 per cent on a consolidated basis to ₹548.39 crore from ₹445.75 crore whereas expenses remained higher at ₹450.42 crore against ₹361.41 crore.
The company also said its board has approved buying back 10 lakh shares at ₹850 a share, or up to ₹85 crore. The buyback would subject to all applicable statutory approvals. The board has fixed November 18 as the record date for the buyback offer.
Commenting on the Q2 performance, MK Dhanuka, managing director of Dhanuka Agritech said: “We have witnessed reasonable growth in the top line but faced pressure on our margins due to high raw material prices. While the prices of raw material increased, we did not pass it on to the consumers, which has impacted our margins. Apart from this, the margins were impacted due to depreciation of rupee vs dollar.
“Uneven rainfall has also adversely impacted our top line and bottom line. While one-third area received excess rainfall, one-third area received deficit rainfall and only one-third area received normal rainfall. As a result, sowing was impacted and this in turn has impacted the growth of the industry.,”
Despite the global volatility, farmers received good returns for their produce as commodity prices remained high globally, he said.
New research centre
Commenting on the rabi prospects, he said as monsoon recovered to a large extent towards the latter half, soil has reasonable moisture and dams are full of water. “We expect the rabi sowing to be good. We are confident a good rabi season is likely to ensure a double-digit growth in the current fiscal,” Dhanuka, said.
During the second quarter, the company brought 3 new products into the market Dhanuka Agritech Research and Technology Centre is expected to be inaugurated this week at Palwal, Haryana, the company said in a statement. The centre is equipped with all laboratory facilities and a training hall with a capacity of 100 farmers.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.