KAVERI SEEDS ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2020
KAVERI SEEDS ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2020
Results at a Glance
• Profitability continues to improve steadily:
o Net Profit for 9M FY21 stood at Rs. 327.86 crore, up 30.38% YOY
• Operational EBITDA margin in 9M FY21 at 26.69 % up by 422 basis points compared to 9M FY20
• Net sales higher by 12.09% for the nine months under review
• The contribution from new products has gone up to 27.20% of volume in 9MFY21 (from 24.55% in 9MFY20)
• Total cash on books of Rs. 455 crore as on 31 December, 2020
Hyderabad February 09, 2020: The Board of Directors of Kaveri Seeds Company Limited approved the financial results for the quarter and nine months ended 31st December 2020 at its meeting held in Secunderabad on Tuesday, 09th February 2021. The Accounts have been subjected to a Limited Review by the company’s Statutory Auditors.
Mr. GV Bhaskar Rao, Chairman & MD, Kaveri Seeds, said “We are encouraged by our performance and in particular the success of our new launches. Our Selection Rice and Hybrid Rice portfolios have grown strongly by over 45% YOY. Vegetable sales too have grown very well on the back of strong growth in Hot pepper, Tomato, Gourds & Okra. We are optimistic of maintaining this trajectory on the back of our strong connect with the farmer, diversified product portfolio and established R&D capabilities “
Once again, the industry has entrusted its faith in Kaveri Seeds and acknowledged our ongoing endeavors as we were awarded the 'Best CSR Initiative in Agriculture Program' and 'Excellence in Seed Infrastructure-Processing' during the India Seed Awards 2020 presented by Agriculture Today Group.
Financial Overview
Q3FY21 Q3FY20 Growth 9MFY21 9MFY20 Growth
Rs. lakhs (%) (%)
Net Sales 11,854.80 12,198.84 -2.82 97,205.29 86,722.61 12.09
EBITDA 1,776.88 1,811.57 -1.91 35,535.48 28,048.56 26.69
EBITDA Margin (%) 14.99 14.85 36.56 32.34
PAT 911.20 825.46 10.39 32,786.32 25,146.39 30.38
Business Highlights
o Strong operational performance. Operating EBITDA margins (excluding other income) stood at 32.29% in 9MFY21 versus 30.66% in 9MFY20
o Cotton Acreages are higher by ~1.8% on YOY basis. Prices have increased due to low production globally and increased demand in anticipation of post Covid recovery. This has pushed prices above MSP
o Maize acreages has been stable on a y-o-y basis while prices have currently decreased due to low demand and consumption
– The main increase is in Kharif Maize in Karnataka, Maharashtra & Rajasthan states. Poor commodity prices have impacted Rabi Maize area
o Hybrid rice industry growth at 8-10% while overall Kaveri hybrid rice is up by 48% 9MFY21
– Scale up of KPH468 across market has resulted in volume and market share gain
o Exports continue to be strong. Presently exporting to Pakistan, Sri Lanka, Bangladesh, and Vietnam
Crop wise detail
Cotton:
Volumes are almost stable in 9MFY21; lower by less than 2%
o Gained cotton seed market share in Gujarat & Haryana markets
o Lost sales in AP and Telangana
o Contribution of new products went up from 31.23% to 35.47% of volume
o New products include KCH 111 & Biplav Money Maker
Non-Cotton:
Business has grown significantly - up by 34.18 %
o Driven by volume growth in new hybrids and also price appreciation in key products
Maize:
o Maize volume has increased by 19.11% and revenue by 13.60%.
o Contribution of new products went up from 7.71% to 9.27% of Volume
Hybrid Rice:
Volumes increased by 47.72% in 9MFY21
o Introduction of new hybrid KPH 468 & KPH 471 & KPH 7299 helped towards strong growth
o Contribution of New Hybrids went up from 50.09% to 67.84
Selection Rice:
Volumes grew by 49.98% in 9M FY21
o Consistent performance across geographies. New products scale up on the back of growth in CHINTU, PRIZE & SAMPURNA
Vegetables:
Vegetable sales volumes increased by 150.57%
o Major growth driven by Hot pepper, Tomato, Gourds & Okra
– In Hot pepper KHPH 1213, KHPH 1217 & KHPH 1225
– In Tomato KTH 354 & KTH 355
– In Okra KOKH 1107
– In Gourds Kaveri 88, Kaveri 67 & Kaveri Hero
A presentation for investors is being separately placed on the Company's website: www.kaveriseeds.in
Safe Harbor
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Kaveri Seed Company Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
