Kaveri Seeds Net Profits Drop; Telangana new site

Hybrid seed and crops producer, Kaveri Seeds has posted negative quarter on quarter results where sales halved and profits negated. The stock grows seasonally and hence Year on year sales have seen a rise. 

The company today announced the opening of new plant in Telangana with an investment of more than Rs 21 crore. The plant is spread across 14 acres with an installed capacity of 10 to 20 tonnes/hour production. The stock has closed at RS 407.55, with an increase of 5.88 per cent.

Company’s year on year consolidated Revenues have come in at Rs 43.82 crores as against Rs 39.95 crores in the same quarter last year, with an increase of 9.7 per cent.  Meanwhile cost of raw materials has risen nearly 20.9 per cent to Rs. 183.37 core from Rs 231.95 crores. Company has witnessed net loss of Rs 7.78 crores as against a net profit of Rs 1.25 crore YoY.

Yearly results show a drop in net sales to Rs 892.78 crores as against Rs 1161.23 crores, a decrease of 23.1 per cent. Net profits for the year ended March 2016 have come in at Rs 172.68 crores as against Rs 300.96 crores for the year ended March 2015, a decrease of 42.7 per cent.