Agria (NYSE: GRO)
Agria Looks Strong Despite Sluggish Financial Results for Fiscal Year 2016
Agria (NYSE: GRO) is a global agricultural company with three principal business segments: Crop Protection, Nutrients and Merchandise; Seed and Grain; and Rural Services. The company’s share price currently trades around $0.85 a share with an average daily volume of 39,234 shares. Agria has a market capitalization of 47.1 million.
The Seed and Grain segment is involved with innovative work, creation and offer of an expansive scope of seed items and exchanging of seed and grain items all around. The Crop Protection, Nutrients and Merchandise segment works a broad chain of retail locations that supply cultivate input materials.
At last, the Rural Services segment gives domesticated animals exchanging, fleece exchanging, water system and pumping, land organization and different administrations.
The company recently reported revenue of $807.7 million, a reduction of 14.5%. Gross profit also declined by 11.4% to $222.4 million, over the same period of last year. Operating profit fell 32.4% to $27.9 million and net profit declined 46% to $7.9 million.
Mr. Alan Lai, Agria’s Executive Chairman, remarked, “In light of poor exchanging conditions in the dairy division and unfavorable outside trade affect, we are satisfied with our superior to expected financial year 2016 results. Quite, our execution fortified during the time half of the financial year, in spite of testing climate that affected operations in South America. Our execution in financial year 2016 kept on exhibiting our capacity to fulfill our close term target of building a strong establishment to drive beneficial development.
Despite sluggish financial performance, the company looks in a sound financial condition. Its cash declined by around $1.6 million to $8.3 million, which is more than enough to cover its operational expenses. Receivables and inventory increased by $48.1 million, while its debt also increased $18.0 million.