Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — Q1 FY2020 Earnings Presentation
22 slides from Kaveri Seed's earnings presentation, Aug 14, 2019
Slide 1: Exchange filing cover letter
keveni seed cornpany limiEed koveri seeds t4rh August 2019 Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd. t.'Floor New Trading Ring Exchange Plaza, 5th Floor, Rotimda Building Plot No.C/1, G BlocL P.J.Towers, Dalal Street, Fort Bandra Kurla Complex, Bandra (E) MUMBAI - 4OO OO1 MUM
Slide 2: Results Presentation – Q1 FY20
Kaveri Seed Company Limited Results Presentation – Q1 FY20
Slide 3: Safe Harbour
2 Safe Harbour 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 act
Slide 4: Industry Backdrop & Outlook
INDUSTRY BACKDROP & OUTLOOK
Slide 5: Industry Backdrop
4 Industry Backdrop o All crops except cotton and Bajra are showing a o Crop-wise area coverage during Kharif 2019-20: decrease in acreage; maize acreage has been stable, As on Aug 09, 2019 decline for Rice (down ~39% YoY) due to Area in lakh hectare transplantation. Cotton acreage has expanded by ~
Slide 6: Industry Backdrop – All India Rainfall
5 Industry Backdrop – All India Rainfall Source: IMD
Slide 7: Industry Backdrop – All India Rainfall
6 Industry Backdrop – All India Rainfall Source: IMD
Slide 8: Industry Backdrop – All India Rainfall
7 Industry Backdrop – All India Rainfall Source: IMD
Slide 9: Industry Backdrop - Cotton
8 Industry Backdrop - Cotton Area coverage during Kharif 2019 as on Aug 09, 2019 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Andhra Pradesh 4.18 4.02 0.16 Telangana 17.24 17.07 0.17 Gujarat 24.70 26.59 -1.89 o Acreage has reduced in Gujarat Haryana 6.76 6.65 0.11 Karnataka 4.47 3.76 0.
Slide 10: Industry Backdrop - Maize
9 Industry Backdrop - Maize Area coverage during Kharif 2019-20 as on Aug 09, 2019 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Karnataka 9.78 10.53 -0.75 Maharashtra 7.92 7.64 0.28 Uttar Pradesh 7.12 7.07 0.05 Telangana 3.31 4.15 -0.84 Bihar 3.65 3.81 -0.16 o With highly attractive com
Slide 11: Industry Backdrop – Commodity Prices Cotton
10 Industry Backdrop – Commodity Prices Cotton Prices July, Prices July, % Change(Over Prices June, % Change(Over State 2019 2018 Previous Year) 2019 Previous Month) Andhra Pradesh 5,998.34 5,841.00 -0.81 6,047.16 2.69 Gujarat 5,895.90 5,564.05 2.97 5,725.64 5.96 Haryana 6,092.59 5,698.52 -1.89 6,21
Slide 12: Industry Backdrop – Commodity Prices Maize
11 Industry Backdrop – Commodity Prices Maize Prices July, Prices July, % Change(Over Prices June, % Change(Over State 2019 2018 Previous Year) 2019 Previous Month) Andhra Pradesh 1,651.67 978.97 0.54 1,642.81 68.72 Assam 1,580.35 1,117.97 6.09 1,489.60 41.36 Chattisgarh 1,964.90 1,073.05 9.92 1,787
Slide 13: Q1FY20 Business Highlights
Q1FY20 Business Highlights 12 o Improvement in cotton revenues driven by higher acreages (~5%) and increased marketshare – A delayed monsoon has seen some sales spilling over to the second quarter o Maize acreage significantly down in Telangana due to late arrival of monsoon – Monsoon has since impr
Slide 14: Q1FY20 Crop wise detail
Q1FY20 Crop wise detail 13 Cotton: Volumes increased by about 13% in Q1FY20 Cotton seed revenue & volumes • Gained cotton seed market share in Gujarat, 6.53 6.65 Maharashtra & Northern Markets 5.86 • Contribution of new products went up from 21% to 33% of volume 427.88 377.60 405.09 • Money Maker Sc
Slide 15: Q1FY20 Crop wise detail
Q1FY20 Crop wise detail 14 Hybrid Rice volumes increased by 53% in Q1 FY20 Hy Rice Seed revenue & volumes 3,240.20 • Introduction of new hybrid Paddy KPH 468 helped 2,233.17 translate to strong growth 1,672.04 32.06 43.40 74.46 FY18 Q1 FY19 Q1 FY20 Q1 Net Revenues (Rs cr) Sales Volume (mn packets) S
Slide 16: Outlook
15 Outlook Field o Due to the delay monsoon resulting in delayed sowing of cotton further increase in area and volume for Kaveri expected in 02nd Quarter for KA, AP & TN o High commodity prices across the board to keep the sentiment positive among the farmer o Delayed monsoon in 01st Quarter impacte
Slide 17: Q1FY20 Performance
Q1FY20 PERFORMANCE
Slide 18: Q1 FY20 Performance Review
17 Q1 FY20 Performance Review Standalone Consolidated Growth Growth Rs. lakhs Q1FY20 Q1FY19 Q1FY20 Q1FY19 (%) (%) Net Sales 65,546.71 58,189.02 12.64 62,757.77 57,872.13 8.44 Cost of Production 35,109.00 31,142.32 12.74 31,484.43 30,224.77 4.17 Gross Profit 30,437.70 27046.70 12.54 31,273.34 27,647.
Slide 19: Cash investments as on 30 June 2019
18 Cash investments as on 30 June 2019 Rs.in Lakhs All figures based on cost Fund House Liquid Liquid Plus FMP Shortterm Medium Grand Total ASK - - - - 2,293 2,293 BIRLA - 1,010 2,100 880 1,220 5,210 FARANKLIN - - 500 - 1,000 1,500 HDFC 1,500 - 4,905 - 3,800 10,205 ICICI - 2,500 2,991 450 3,703 9,64
Slide 20: The Kaveri Moat: Seeding Profitable Growth
19 The Kaveri Moat: Seeding Profitable Growth Strong P&L record, Cash Leadership in key crops: rich, consistent dividend Top 5 Rank paying Benchmark R&D: Diverse Product portfolio Comprehensive germplasm addressing crop rotation & repository shift Market adjacent, Pan- India Operations with comprehe
Slide 21: Investor Contacts
20 Investor Contacts For further information, please contact: Tel: +91 40 4919 2345 C. Mithun Chand Fax: +91 40 2781 1237 Executive Director, Kaveri Seeds # 513 B, 5th Floor, Minerva Complex, S.D.Road, Secunderabad -500 003 www.kaveriseeds.in Gavin Desa +91 22 6645 1237 CDR India gavin@cdr-india Ris
Slide 22: Thank You
THANK YOU
Kaveri Seed Company — Q1 FY2020 Earnings Presentation on 6ix