White Organic Agro hit an upper circuit limit of 10% at Rs 12.99 after the company said it received a contract for supplying 2500 ton food grains.White Organic Agro announced the receipt of direct letter of intent for supplying various food grains (pulses and grains) upto 2500 ton worth about Rs 42 crore to be supplied in the domestic market.
In FY22 the company supplied food grains worth Rs 15 crore to the same group company.
As the capacity and the order book is increasing, in order to facilitate uninterrupted supply the management will soon finalise the indirect farming business for cultivation, warehousing for pulses in the western states of India, as deem fit.
To facilitate this, the management is finalising office in Vashi, Navi Mumbai, from where the management intends to carry out the business.
Previously, the supply of food grains by the company had cleared all the required quality checks and quality team of the buyer are looking forward for long term association with the company. The management believes this step will certainly boost the company's prospect for future. Commercially as well this is very much viable business. The initial scalability of business of food grains in the domestic market is approx Rs 400 crore.
Net profit of White Organic Agro surged 831.71% to Rs 3.82 crore on 69.83% rise in net sales to Rs 31.86 crore in Q2 September 2021 over Q2 September 2020.
White Organic Agro is engaged in organic products farming, cultivations, distributions and retailing. It caters to its organic product range with over 250 organic products in over 12 categories and approximately 17 sub categories from its store located in Central Mumbai.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)