Monsanto

Monsanto India, subsidiary of USA based Monsanto Company, for Q3FY14 posted a bumper set of numbers. It reported a whopping 124% (YoY) jump in net profit at Rs.65 crore, which sequentially, rose over 8 times. This robust growth in bottomline was on account of a very good topline at Rs.182 crore, up 62% (YoY). This is the peak season for such agri companies for rabi sowing and seasonally, Q4 will be weaker but the current Q3 has been a bumper for the company, given the very good monsoon and rich kharif harvest.

The company, till end of 9MFy14 had posted a net profit at Rs.129 crore v/s Rs.67 crore for FY13; clearly, even if Q4 remains weak, it will end Fy14 on a bumper note. Typical of a MNC, the company is debt free, promoters stake is 72.14% and reserves stands at Rs.390 crore.

Controversy surrounds this see company, which literally monopolises India’s cotton seeds. It is blamed for making super profits, by selling seeds at high costs and earning a bounty through royalties as farmers get caught in the debt trap. The highest number of farmer suicides is in the same belt where Monsanto enjoys a monopoly and thus indirectly, it is being blamed for the plight of the farmers. The company is blamed for genetic engineering to control seed and the food system through patents and intellectual property rights. The farmers in Brazil have also levied the same charges on Monsanto and farmers in Brazil have sued Monsanto for $2.2 billion for unfair collection of royalty.