Kaveri Seeds forecasts strong second quarter performance fuelled by vegetable and maize spillover effect
Kaveri Seeds Company Ltd, India’s largest agriculture company specialised in hybrid seeds research and farmer engagement, expects the sales in the July-September quarter of this fiscal year will help compensate for the downturn that it witnessed in the previous seasons. The company also anticipates a prosperous rabi season in the latter half of the year along with a surge in maize volume that would probably surpass those of previous years.
Speaking in an interview with CNBC-TV18, C Mithun Chand, Executive Director of Kaveri Seeds said that the upcoming quarter (Q2 FY24) is poised to be a more favourable period for the company, primarily due to the spillover effects in both the vegetable and maize segments from the last quarter.
Speaking in an interview with CNBC-TV18, C Mithun Chand, Executive Director of Kaveri Seeds said that the upcoming quarter (Q2 FY24) is poised to be a more favourable period for the company, primarily due to the spillover effects in both the vegetable and maize segments from the last quarter.
“The company is sure that with the spillover sales in the Q2 and with good rabi coming up in the second half of the year, even maize volumes will be up compared to previous years,” Chand said.
The cotton and maize markets were key topics of discussion during the interview. Chand revealed that Kaveri Seeds has successfully captured a notable market share in these sectors. In the cotton market, the company’s share currently stands at an impressive 15 percent. Similarly, the maize market boasts a 10 percent share for the company.
Kaveri Seed recently announced its financial results for the quarter ending June 30, 2023, with net sales reaching Rs 736.10 crore, marking a 7.37 percent increase compared to Rs 685.59 crore recorded in June 2022. The net profit for April-June 2023 stood at Rs 273.52 crore, showing a growth of 12.18 percent from the previous year’s Rs 243.82 crore. Additionally, the EBITDA for June 2023 was reported as Rs 289.49 crore, indicating a rise of 13.93 percent as compared to the year-ago quarter’s Rs 254.09 crore. Notably, Kaveri Seeds’ earnings per share (EPS) rose from Rs 42.44 in June 2022 to Rs 49.10 in June 2023.
