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In an interview to CNBC-TV18, G Vijay Kumar, CFO of Kaveri Seeds spoke about the results and his outlook for the company.
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.
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.
Seasonally fourth quarter fetches low revenues. The company earns over 90 percent of its revenues in first three quarters of fiscal. Further weakness is expected due to subdued environment due to weak monsoons.
Analysts expect cotton seed sales volume to decline by 60 percent year-on-year in Q2FY16. Non-cotton revenue growth may remain muted at 5 percent for the quarter.
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.