Kaveri Seed's Q4 loss widens at Rs 87 cr on lower income, rise in costs

Company's total income down 7% to Rs 42 cr, expenses rise 36% to Rs 74 cr

Hyderabad-based Kaveri Seed Company's standalone net loss has widened to Rs 87.19 crore in January-March quarter this year due to lower income and rise in expenses. It had a loss of Rs 10.41 crore in the corresponding quarter the previous year.

During the quarter under review, the company's total income declined 7.2 per cent to Rs 42.07 crore, while its expenses increased 36 per cent over the same quarter last year to Rs 74.06 crore.

The company's consolidated net profit for financial year 2016-17 was down almost 54 per cent at Rs 77.29 crore, from Rs 167.47 crore during the previous fiscal. Its consolidated total income and expenses have come down marginally over the previous financial year, to stand at Rs 740.78 crore and Rs 597.29 crore respectively in FY17.

The company said it has received lower royalty at Rs 49 per packet, on the sale of Bt cotton seeds, whose selling price also decreased to Rs 800 during the last fiscal as per the cotton seeds price control order (CSPCO) and the price notification issued by the Union Agriculture ministry. This has resulted in lower value of sales in the reviewed quarter and the year.