Monsoon pouring incremental demand for seeds: Kaveri Seeds

1715 Investors following Kaveri Seed Co. Share this News with them.

0

Like this story, share it with millions of investors on M3

Monsoon pouring incremental demand for seeds: Kaveri Seeds

Confirming monsoon magic has cast the spell, C Mithun Chand, executive director of Kaveri Seeds says that the demand has swelled with early arrival of the rains. “50% of the cotton seeds are already sold. We see a good season for the entire seed industry,” he asserts.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Kaveri Seed Co See previous management interviews See what other Experts & Brokerages are saying about Kaveri Seed Co Kaveri Seed Co BSE | NSE 29/05/12 Are Mutual Funds betting on Kaveri Seed Co?

Confirming monsoon magic has cast the spell, C Mithun Chand, executive director of Kaveri Seeds says that the demand has swelled with early arrival of the rains. "50% of the cotton seeds are already sold. We see a good season for the entire seed industry," he asserts.

The company is confident of FY12 margins to be between Rs 285 crore to 300 crore and sees majority of the increment happening in Q1. He further affirms crops are doing well and hence, sees inflation coming down in terms of the food crops.

May inflation number on expect lines, say experts

Below is a transcript of C Mithun Chand's interview with CNBC-TV18. Also watch the accompanying video.

Q: How is demand progressing? What kind of an incremental demand are you seeing across the country?

A: We see good monsoon this time. It arrived about a week to a week and half before what happened last year and there is already shortage of cotton seeds. Farmers are already buying the seed and 50% of the cotton sale is already over. We see a good season for the entire seed industry.

Q: What kind of a top-line growth and margins you are targeting for full year FY12 and what you are expecting in the current quarter?

A: For the full year margins will be between Rs 285-300 crore and majority of the increment will be in the Q1. Last year, we had done around Rs 150 crore of turnover in the Q1 and this year we expect something close to Rs 185 to 200 crore. The EBITDA margins may also go up by 1-1.5% compared to the previous quarter in this quarter.

Q: Have you noticed decent amount of pickup in seeds in other crops?

A: We are into maize, bajra, sorghum and sunflower as well but maize has shown good sign this year. We see pulses acreage converted into maize and part of rice is also being converted to maize. We have seen good crop for the entire year for maize even in the Rabi season for the other crops like bajra and sunflower also picking up compared to previous year. The portfolio that we have is picking up even jowar in some parts.

Q: Looking at the sowing patterns, would you expect the actual crop to be significantly better as compared to last year? Do you think inflation could go down and what is the general outlook on the agriculture sector?

A: Corn and other crops are going up. Cotton seeds may grow by other 5% or it may remain same, whereas the other crops are all doing well and inflation is also coming down in terms of these food crops.