Kaveri Seed Company Reports Strong Growth Amid Concerns Over Income Sources and Liquidity in December 2024 Results

Feb 12 2025 05:42 PM IST
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Kaveri Seed Company reported its financial results for the quarter ending December 2024, highlighting a significant increase in Profit Before Tax at Rs 5.36 crore and net sales of Rs 174.05 crore. However, concerns arise from a high reliance on non-operating income and the lowest cash reserves in recent periods.
Kaveri Seed Company, a player in the Agri-Seeds industry, recently announced its financial results for the quarter ending December 2024. The company reported a notable performance in several key areas, with Profit Before Tax (PBT) reaching Rs 5.36 crore, reflecting a significant year-on-year growth of 202.82%. Additionally, net sales for the quarter stood at Rs 174.05 crore, marking a year-on-year increase of 22.03%. Profit After Tax (PAT) also showed positive momentum, amounting to Rs 15.44 crore, which is a 31.1% rise compared to the previous year.

However, there are aspects that raise concerns. A substantial portion of the company's income, 67.94% of PBT, is derived from non-operating sources, indicating a reliance on income from non-business activities. Furthermore, Kaveri Seed Company reported its lowest cash and cash equivalents in the last six half-yearly periods at Rs 7.25 crore, suggesting challenges in short-term liquidity.

In light of these results, Kaveri Seed Company has experienced an adjustment in its evaluation, with its score moving to 2 from -6 over the past three months.

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