Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — Q2 FY2020 Earnings Presentation
23 slides from Kaveri Seed's earnings presentation, Nov 13, 2019
Slide 1: Kaveri Seed Company Limited exchange filing cover letter
+ kaveri seed company limited 13t November 2019 Bombay Stock Exchange Ltd., 1st Floor New Trading Ring Rotimda Building PJ.Towers, Dalal Street, Fort, MUMBAI - 400 001 Scrip Code: 532899 Dear Sir, @ kaveri seeds® National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No.C/1, G Block,
Slide 2: Results Presentation – Q2 & H1FY20
Kaveri Seed Company Limited Results Presentation – Q2 & H1FY20
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 Till date Cotton area Increased due to o Crop-wise area coverage during Rabi 2019-20: As extended sowing season by about 5.5% over on Nov 08, 2019 last year Area in lakh hectare YoY CROP 2019-20 2018-19 Abs Change o Maize & Jowar sowing has been down while Cotton 127.67 121.05
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 Sep 27, 2019 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Andhra Pradesh 6.33 5.69 0.64 Telangana 18.60 17.69 0.90 Gujarat 26.67 27.12 -0.45 o Acreage has reduced in Gujarat Haryana 7.01 6.65 0.36 Karnataka 5.93 4.35 1.
Slide 10: Industry Backdrop - Maize
9 Industry Backdrop - Maize Area coverage during Rabi 2019-20 as on Nov 08, 2019 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Karnataka 0.203 0.190 0.01 Maharashtra 0.167 0.216 -0.05 Uttar Pradesh 0.022 0.005 0.02 Telangana 0.030 0.220 -0.19 o Rabi acreages are expected to increase due
Slide 11: Industry Backdrop – Commodity Prices Cotton
10 Industry Backdrop – Commodity Prices Cotton Prices Prices % Change(Over Prices October, % Change(Over State November, 2019 November, 2018 Previous Year) 2019 Previous Month) Andhra Pradesh 5119.00 5712.30 -10.39 5256.95 -2.62 Gujarat 4979.22 5448.31 -8.61 4749.32 4.84 Haryana 5375.18 5519.92 -2.6
Slide 12: Industry Backdrop – Commodity Prices Maize
11 Industry Backdrop – Commodity Prices Maize Prices Prices % Change(Over Prices October, % Change(Over State November, November, Previous Year) 2019 Previous Month) 2019 2018 Andhra Pradesh 1512.53 1440.57 5.00 1601.66 -5.56 Assam 1219.64 1547.75 -21.20 1431.93 -14.83 Chattisgarh 1700.00 1361.26 24
Slide 13: H1FY20 Business Highlights
H1FY20 Business Highlights 12 o Strong operational performance. Operating EBITDA margins (excluding other income) stood at 14.58% in Q2FY20 versus 10.46% in Q2FY19 o Cotton Sales increased in Q2 due to extended sowing season in AP & KA – Due to delay monsoon which resulted in extended monsoon o Maiz
Slide 14: H1FY20 Crop wise detail
13 H1FY20 Crop wise detail Cotton: Cotton seed revenue & volumes 7.17 Volumes increased by about 16% in H1FY20 6.93 o Gained cotton seed market share in Gujarat, Maharashtra 6.19 & Northern Markets o Contribution of new products went up from 14.36% to 461.66 396.56 440.68 23.57% of volume FY18 H1 FY
Slide 15: H1FY20 Crop wise detail
H1FY20 Crop wise detail 14 Hy Rice Seed revenue & volumes Hybrid Rice 3,641.38 Volumes increased by 54% in H1FY20 2,293.23 1,679.26 o Introduction of new hybrid Paddy KPH 468 helped translate to strong growth 31.41 47.91 80.06 Selection Rice: FY18 H1 FY19 H1 FY20 H1 Volumes grew by 2 % in H1 FY20 Ne
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 Seeds in H1FY20 o High commodity prices across the board to keep the sentiment positive among the farmer o Maize and Rice area for Rabi season is expected to go up with in
Slide 17: Q2FY20 Performance
Q2FY20 PERFORMANCE
Slide 18: Q2 FY20 Performance Review
17 Q2 FY20 Performance Review Standalone Consolidated Growth Growth Growth Growth Rs. lakhs Q2FY20 Q2FY19 H1FY20 H1FY19 Q2FY20 Q2FY19 H1FY20 H1FY19 (%) (%) (%) (%) Net Sales 7,742.77 7,519.40 2.97 73,289.48 65,708.42 11.54 11,766.00 9,256.99 27.10 74,523.77 67,129.12 11.02 Cost of Production 3,504.9
Slide 19: Cash investments as on 30 September 2019
18 Cash investments as on 30 September 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 FRANKLIN 1,000 500 1,500 HDFC 600 4,905 500 3,800 9,805 ICICI 2,991 450 3,703 7,144 IDFC 59 1,000 316 1,3
Slide 20: Key Ratios
19 Key Ratios Standalone Consolidated As on As on As on As on Rs. Lakhs September September September September 30, 2019 30, 2018 30, 2019 30, 2018 Shareholders Fund 123,312.24 103,373.81 123,427.42 102,743.94 Long-term Debt 179.55 187.82 381.93 655.66 Fixed Asset Turnover (times) 2.67 2.90 2.60 2.8
Slide 21: The Kaveri Moat: Seeding Profitable Growth
20 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 22: Investor Contacts
21 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 23: Thank You
THANK YOU
Kaveri Seed Company — Q2 FY2020 Earnings Presentation on 6ix