Karuturi Q4 net rises 2.6%

Bangalore-based rose exporter Karuturi Global has posted a marginal rise of 2.6 per cent in its net profit to Rs 43.60 crore in the fourth quarter of last financial year compared with Rs 42.85 crore reported an year earlier.

Other income of the company stood at Rs 4.61 crore during this period, adding to the profit numbers.

The total income of the company rose by five per cent to Rs 183.48 crore during this period as compared with Rs 174.65 crore reported an year earlier.

Operating profit grew by by 24.85 per cent to Rs 54 crore as compared with Rs 43.25 crore reported in an year ago period.“Though the company grew marginally in terms of both revenue and profit numbers, there is an overall growth in the business,” Ramesh K, chief financial officer of Karuturi Global, said.

He also said that only flower business had contributed to the revenue and agri-business was yet to complement the balancesheet.

Karuturi Global has been deriving 95 per cent of its revenues from rose exports. While each stem is sold around 11-12 Euro cents, its cost of production is around 7 Euro cents, a margin of round 60 per cent on each rose stem.

The company has around 550 acres under roses which will be expanded by adding another 150 acres in the near future.

The company has also aggressive plans in the area of agriculture for further business growth. On annual basis, net profit increased by 18 per cent to Rs 168.46 crore in FY11 as compared with Rs 143.38 crore reported an year earlier.

Total income rose by 18.7 per cent to Rs 633.62 crore in the last financial year. The company also posted a 31 per cent rise to Rs 178.50 crore during this period. Meantime, the company has also decided to issue 3.47 million shares to Bennett Coleman & Co Ltd on a preferential basis at Rs 21.60 per equity share. As per company officials, this will translate into one per cent holding in the company.

It has also issued 39.4 million shares to Ramakrishna Karuturi, who belongs to promoters group and holds the post of managing director of the company, at Rs 21.60 per share on preferential basis.