Kaveri Seed Company is in focus as reports indicate that the government is likely to slash BT cotton prices. Remember, cotton seeds contribute 66 percent to the revenues of the company. In an interview to CNBC-TV18, G Vijay Kumar, CFO of the company discussed the probability of this happening as well as the impact.
In an interview to CNBC-TV18, G Vijay Kumar, CFO of Kaveri Seeds spoke about the results and his outlook for the company.
Reports suggest that the seed industry has agreed to a 10 percent price cut on all hybrid seeds except cotton. This is effective from today and is for the kharif season that is currently underway. In an interview to CNBC-TV18, G Vijay Kumar, CFO of Kaveri Seed Company discuss the impact on the company.
The total buyback size would be around Rs 200 crore. The cash on books currently stood at Rs 600 crore and post buyback would be around Rs 400 crore, said G Vijay Kumar of Kaveri Seed.
Budget should boost rural economy and farmer financing which were hit by demonetisation, G Vijay Kumar, CFO of Kaveri Seed Company told CNBC-TV18.
G Vijay Kumar, CFO of the company is very upbeat of growth continuing for the next two-quarters too. He expects a 10-15 percent growth in the third quarter due to good rains.
Company being asked for compensation of Rs 43 lakh is an old issue, says Mithun Chand, ED of Kaveri Seed Company.
The price cap has had an impact on margins this year, says G Vijay Kumar, CFO, Kaveri Seeds.
Mithun Chand, Executive Director of Kaveri Seeds, told CNBC-TV18 that he expects the company to put up a good show in the coming quarters depending on the monsoon.
On the government‘s proposed move to cut cotton seed prices, Mithun Chand, Wholetime Director of Kaveri Seed says, although margins may be hit in the short term, it will help bring price uniformity in the longer run and curb royalty disputes.
C Mithun Chand, Wholetime Director at Kaveri Seeds is confident that the company will regain its market share.
C Mithun Chand, Wholetime Director, Kaveri Seeds in an interview to CNBC-TV18 said the main reason for lowering guidance for cotton seeds was poor monsoons, lower cotton acreages, subdues crop prices and lower sales.
C Mithun Chand, wholetime director at Kaveri Seed says unseasonal rains won't impact it much. He says the company saw good sales in the third quarter and fourth quarter had always been a lean one for it.
Discussing the third quarter results, C Mithun Chand, Wholetime Director of Kaveri Seeds, says he see improving acreages in corn and cotton going forward, even though Q4 is a traditionally weak quarter.
Mithun Chand, wholetime director, Kaveri Seeds says most of the Q2 sales were due to Q1 demand spillover over the delay in monsoons.
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.