Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — Q3 FY2019 Earnings Presentation
24 slides from Kaveri Seed's earnings presentation, Feb 14, 2019
Slide 1: Exchange cover letter for results presentation
kaveri seed company limited kaveri seeds" 14th February 2019 Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd. 1st Floor New Trading Ring Exchange Plaza, 5th Floor, Rotimda Building Plot No.C/l, G Block, P.J.Towers, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E) MUMBAI - 400 00
Slide 2: Results Presentation – Q3 & 9M FY19
Kaveri Seed Company Limited Results Presentation – Q3 & 9M FY19
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: Contents
3 Contents Kaveri Reinvented Industry Backdrop & Outlook Quarterly Performance
Slide 5: Kaveri Reinvented
4 Reducing dependence on cotton Widening presence Kaveri and reach Reinvented High quality leadership team; strong infrastructure backbone ` Repaying shareholders
Slide 6: Increasing presence in non cotton crops
5 Reducing dependence on cotton o Increasing presence in non cotton crops Widening presence and reach o Over a 3 year time frame non cotton expected to contribute ~60% of revenues High quality o Transition diversifies risk profile of the revenue stream leadership team; strong infrastructure o Key no
Slide 7: Widening presence and reach
6 Declining sensitivity to cotton Domestic Widening o FY18: Established leadership in cotton in Gujarat; growing presence presence in Maharashtra and reach o Thrust on entering new markets – Punjab, Chandigarh and Rajasthan over FY19 and 20 – testing successfully completed on new region specific var
Slide 8: Strong leadership team in place
7 Declining sensitivity to cotton Widening Strong leadership team in place presence and reach Most functional heads bring to the table 15+ years of industry relevant experience High quality Infrastructure enhancements leadership team; strong o More multi-locational satellite farms across country inf
Slide 9: Repaying shareholders; consistent free cashflow
8 Declining sensitivity to cotton o Consistent annual free cashflow of appx. Rs 200 cr Widening presence o Total Cash on books as on December 31, 2018: Rs 389 cr and reach o Annual capex: ~ Rs 30-40 cr High quality o Focus on repaying shareholders with a large proportion of free leadership team; str
Slide 10: Industry Backdrop & Outlook
INDUSTRY BACKDROP & OUTLOOK
Slide 11: Industry Backdrop
10 Industry Backdrop o Overall rainfall was delayed & deficient with wide o Commodity prices have remained lucrative for variation resulted in lower sowing area in most crops cotton in the later part despite lower yields due for the same period last year to Pink Bollworm incidence o Bajra areas seve
Slide 12: Industry Backdrop – All India Rainfall
11 Industry Backdrop – All India Rainfall Source: IMD
Slide 13: Industry Backdrop - Cotton
12 Industry Backdrop - Cotton Area coverage during Kharif 2018 as on Sep 29, 2018 Area in lakh hectare YoY State 2018-19 2017-18 o Fear of Pink Bollworm as well as delayed rainfall in some markets Abs Change have impacted sales Andhra Pradesh 5.51 5.95 (0.44) o Sowing happened much later this year t
Slide 14: Industry Backdrop - Maize
13 Industry Backdrop - Maize Area coverage during Rabi 2018-19 as on January 24, 2019 Area in lakh hectare YoY State 2018-19 2017-18 Abs Change Karnataka 0.81 0.99 -0.18 Maharashtra 1.16 1.98 -0.82 Uttar Pradesh 0.16 0.18 -0.02 o On the back of fear of Fall Army Worm, the sentiments for Maize Telang
Slide 15: Industry Backdrop – Commodity Prices Cotton
14 Industry Backdrop – Commodity Prices Cotton State Febraury, 2019 Febraury, 2018 YOY % Change January, 2019 MOM % Change Andhra Pradesh 4425.4 __ 5432.07 __ Gujarat 5275.68 4808 9.73 5230.76 0.86 Haryana 5383.47 5149.95 4.53 5468.89 -1.56 Karnataka 5391.36 4765.71 13.13 5528.3 -2.48 Madhya Pradesh
Slide 16: Industry Backdrop – Commodity Prices Maize
15 Industry Backdrop – Commodity Prices Maize State Febraury, 2019 Febraury, 2018 YOY % Change January, 2019 MOM % Change Andhra Pradesh 1681.7 1145.94 46.75 1617.91 3.94 Assam 1657.14 1159.07 42.97 1619.94 2.3 Chattisgarh 1735.71 1100.25 57.76 1544.38 12.39 Gujarat 1946.02 1304.71 49.15 1803.27 7.9
Slide 17: Outlook
16 Outlook o Overall cotton market down by 3-4% and is o Cotton prices seen to improve impacted by delay in rainfall & fear of pink o Maize prices are also seen to be better for bollworm. the crops o New products to see robust growth o Rabi maize acreage has seen a drop during especially in cotton,
Slide 18: Quarterly Performance
QUARTERLY PERFORMANCE
Slide 19: Q3 & 9MFY19 Performance Review
18 Q3 & 9MFY19 Performance Review Rs. lakhs Q3FY19 Q3FY18 Growth (%) 9MFY19 9MFY18 Growth (%) Net Sales 6,718.30 7,063.93 (4.89) 72,426.72 73,079.84 (0.89) Cost of Production 3,914.53 3,976.55 (1.56) 38,739.95 37,161.15 4.25 Gross Profit 2,803.77 3,087.38 (9.19) 33,686.77 35,918.69 (6.21) Gross Marg
Slide 20: Cash investments as on December 2018
19 Cash investments as on 31 December 2018 Rs.in Lakhs All figures based on cost Fund House Liquid Liquid Plus FMP Medium Term Short Term Total ASK 2,991 2,991 BIRLA 10 2,100 1,220 3,330 FRANKLIN 500 500 HDFC 4,905 3,800 8,705 ICICI 2,991 3,703 450 7,144 IDFC 59 316 375 IIFL 2,705 2,705 KOTAK 4,000
Slide 21: 9M FY19 Operational Highlights
20 9M FY19 Operational Highlights o Cotton Kaveri volumes decreased by about 12% Cotton seed revenue & volumes in 9M FY19 o Money Maker Scale up across – Gained cotton seed market share in Gujarat, market this year . 2 new Cotton 6.9 5.4 6.1 Maharashtra & Northern Markets hybrids under demonstration
Slide 22: The Kaveri Moat: Seeding Profitable Growth
21 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 23: Investor Contacts
22 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 24: Thank You
THANK YOU
Kaveri Seed Company — Q3 FY2019 Earnings Presentation on 6ix