Data Agro Limited: Resilient Growth in Agricultural Seed Industry

Data Agro Limited, trading as DAAG on the Pakistan Stock Exchange, has a rich history dating back to its establishment as a private limited company in 1992. Since transitioning to a public limited company in 1994, Data Agro Limited has carved a niche for itself in the production and processing of agricultural seeds, with a particular emphasis on delinting cotton crops.

As of June 30, 2023, the company boasts 4 million outstanding shares held by a diverse group of 2,122 shareholders. Notably, individuals own the majority stake at 47.7%, closely followed by directors, the CEO, their spouses, and minor children who collectively hold 39.99% of the company. Data Enterprises (Private) Limited, an associated company, owns 9.87% of the shares, while NIT and ICP jointly hold 1%.

Over the years, Data Agro Limited has exhibited consistent growth in revenue, albeit with occasional fluctuations in profit margins. In 2019, the company witnessed a 13.67% increase in revenue driven by robust sales of cotton, wheat seeds, and hybrid corn. Despite a rise in gross profit, operating profit dipped by 5.97% due to escalated administrative expenses. However, the company's net profit surged by 27.59% in the same year.

In 2020, Data Agro Limited faced a slight setback with a 1% decline in sales attributed to the COVID-19 pandemic's impact on hybrid seed demand. Nevertheless, a reduction in costs led to an 8% increase in gross profit, resulting in a remarkable 47% growth in net profit. The following year, 2021, witnessed a remarkable 30.47% surge in revenue fueled by heightened demand and improved prices in the international seeds market. The company's production also spiked, contributing to a 40% growth in operating profit. Despite a marginal rise in finance costs, net profit soared by 37.78% in 2021.

Overall, Data Agro Limited has showcased resilience and sustained growth in its financial performance, making it a key player in the agricultural seed industry. With a track record of consistent revenue growth and strategic operational decisions, the company continues to thrive in the competitive market landscape.