Dhanuka Agritech posts Rs 55 cr net profit

Agri inputs firm Dhanuka Agritech has closed the second quarter of the financial year with a net profit of Rs 55 crore, up 4.22 per cent, against Rs 52.81 crore in the corresponding period of 2017-18.

According to a company statement, turnover of the company, which has operations in major agricultural States, grew to Rs 383.36 crore, up 10.39 per cent, from Rs 347.27 crore recorded in Q2 of the previous fiscal.

Dhanuka Agritech Managing Director M K Dhanuka told

BusinessLine that the risk of an impending drought is a concern in some States where the company is in operation. But he is confident that the company would be able to make up for the loss of opportunity in rain-deficit areas by focussing more on areas where “green patches” exist.

To incentivise its shareholders, Dhanuka board of directors has proposed a buyback of 50 lakh shares at a price not exceeding Rs 550, subject to approval by shareholders and other statutory and regulatory clearances. “The company has ample cash reserves and we want to reward our shareholders by offering buyback of shares. Even though we have one full year to complete the process, we would like to close it within the current financial year,” Dhanuka said.

Dhanuka shares with a face value of Rs 2 closed down by 1.82 per cent at Rs 410.55 on the BSE. On the NSE, the stock closed lower by 1.13 per cent at Rs 412.