Monsanto witnessed a virtual shower on Thursday even as the failed monsoon last year could not baulk the company's profitability growth.

The scrip of the industrial and agricultural chemicals maker leaped up 7.2% to Rs 520 on BSE in early trades. The scrip, however, came off the day's high of Rs 533.50 . A total of 2,997 Monsanto India shares were traded on BSE thus far.

MIL is a thinly traded stock. The scrip has been witnessing a sustained rise in the run-up to the results. From Rs 402.80 on 10 October 2002, the scrip surged 20% in a little over three months to Rs 485.05 ahead of the Q3 results.

For Q3 ended 31 December 2002, MIL's sales were flat at Rs 131.13 crore (Rs 1.31 billion) compared to Rs 131.96 crore (Rs 1.31 billion) in Q3 December 2001. Other income burgeoned 128% to Rs 1.67 crore from Rs 0.73 crore. Net profit as a result spiraled 68% to Rs 30.96 crore from Rs 18.33 crore.

MIL's fortunes are directly linked to agricultural production and the monsoon. The company manufactures and markets agricultural and industrial chemicals. It pioneered the chemical weed control concept in India and is a leader in rice herbicides, marketed under the Machete brand. The company also markets Avadex - a herbicide used on wheat crops.

Monsanto India, earlier known as Monsanto Chemicals of India, is a subsidiary of Monsanto Company (now known as Pharmacia Corporation) US. The company was incorporated in 1949. In 1989, it offered shares to the Indian public to reduce foreign equity holding and to diversify operations.

Last year, the government approved the new "National Seeds Policy". This policy clearly recognises that seeds are the most important determinant of agricultural production potential, on which the efficacy of other agricultural inputs is dependent. The policy also encourages private and public sector involvement in the production and supply of quality seeds.

Earlier, in November 2001, the government enacted a new legislation called " The Protection of Plant Varieties and Farmers' Rights Act" for protecting the rights of plant breeders who develop new varieties of seeds. This is expected to stimulate investments for R&D in both public and private sectors and also encourage global companies to introduce more proprietary varieties of seeds and technologies. This Act will facilitate the growth of the seeds industry in the country and thereby ensure the availability of high quality seeds and planting material to Indian farmers to help them improve yields and compete globally.