25 Aug , 2021 By : Kanchan Joshi
Kaveri Seed on Wednesday informed that the board of the company at a meeting held today have approved buyback of equity shares for an aggregate amount of Rs120 crore. The buyback price has been set at Rs850 per share. Shares of Kaveri Seed were trading over 2% higher to Rs592 per share on the BSE in Wednesday's afternoon deals.
The company's buyback will be from open market through stock exchange mechanism, it said in an exchange filing. The company last week had said that its board will meet to consider share buyback proposal on August 25.
Kaveri Seeds is a leading largest agriculture company in India, specializing in hybrid seeds in key Indian crops.
For the quarter ending June (Q1FY22), Kaveri reported revenue and net profit decline of 12.5% and 30.9% year-on-year (YoY), respectively. EBITDA margin declined 820bps YoY due to higher input prices and negative operating leverage. During Q1FY22, the cotton seeds and maize volume declined 28.9% and 18.3% YoY, respectively. However, hybrid rice volumes registered strong growth of 33.1% YoY. Cotton business reported revenue decline of 27.5% in Q1FY22 and Kaveri witnessed increase in sales-returns and writeoffs.
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