Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — H1 FY2021 Earnings Presentation
23 slides from Kaveri Seed's earnings presentation, Nov 10, 2020
Slide 1: Kaveri Seed Company Limited filing letter to exchanges
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Slide 2: Results Presentation – Q2 & H1FY21
Kaveri Seed Company Limited Results Presentation – Q2 & H1FY21
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: H1FY21 Business Highlights
H1FY21 Business Highlights 4 o Strong operational performance. Operating EBITDA margins (excluding other income) stood at 35.57% in H1FY21 versus 34.27% in H1FY20 o The Board of Directors have recommended a dividend of Rs 4 per equity share of Face value Rs 2 o With good monsoon and better sowing, t
Slide 6: Industry Backdrop
5 Industry Backdrop o YTD cotton acreages have increased marginally by about 1.8% compared to the o Crop-wise area coverage during Rabi 2019-20: As previous year. The Government has on Nov 06, 2020 encouraged certain crops and hence acreages Area in lakh hectare have increased in the Telangana regio
Slide 7: Industry Backdrop – All India Rainfall
Industry Backdrop – All India Rainfall 6 Source: IMD
Slide 8: Industry Backdrop – All India Rainfall
7 Industry Backdrop – All India Rainfall Source: IMD
Slide 9: Industry Backdrop – All India Rainfall
8 Industry Backdrop – All India Rainfall Source: IMD
Slide 10: Industry Backdrop - Cotton
9 Industry Backdrop - Cotton Area coverage during Kharif 2020 as on Sep 18, 2020 Area in lakh hectare YoY Abs State 2020-21 2019-20 o Overall Cotton area has seen marginal Change growth of ~2% with major gains in Andhra Pradesh 5.64 6.20 -0.56 Telangana, Karnataka and Punjab Telangana 24.13 18.60 5.
Slide 11: Industry Backdrop – Commodity Prices Cotton
10 Industry Backdrop – Commodity Prices Cotton Prices Prices % Change(Over Prices October, % Change(Over Previous State November, November, Previous Year) 2020 Month) 2020 2019 Andhra Pradesh 5027.06 - - - Gujarat 5093.90 4700.36 8.37 4730.81 7.68 Haryana 5150.00 5308.41 -2.98 5150.00 0.00 Karnataka
Slide 12: Industry Backdrop - Maize
11 Industry Backdrop - Maize Area coverage during Rabi 2019-20 as on Nov 06, 2020 Area in lakh hectare YoY Abs State 2020-21 2019-20 Change Karnataka 0.14 0.16 -0.02 Maharashtra 0.25 0.17 0.09 o Rabi acreages are expected to decline on Uttar Pradesh 0.02 0.02 0.00 the back of lower commodity prices
Slide 13: Industry Backdrop – Commodity Prices Maize
12 Industry Backdrop – Commodity Prices Maize Prices November, Prices November, % Change(Over Prices October, % Change(Over Previous State 2020 2019 Previous Year) 2020 Month) Andhra Pradesh 1207.89 1553.05 -22.22 1184.74 1.95 Assam 1469.48 - - - Chattisgarh 1123.08 1740.20 -35.46 1102.24 1.89 Gujar
Slide 14: H1FY21 Crop wise performance
13 H1FY21 Crop wise performance Cotton: Cotton seed revenue & volumes 7.17 7.11 Volumes are almost stable in H1FY21 o Gained cotton seed market share in Gujarat & Haryana 6.19 markets o Lost sales in AP and Telangana 396.56 440.68 435.63 o Contribution of new products went up from 31% to 35% of FY19
Slide 15: H1FY21 Crop wise performance
H1FY21 Crop wise performance 14 Hy Rice Seed revenue & volumes Hybrid Rice 5,120.89 3,641.38 2,293.23 Volumes increased by 41% in H1FY21 47.91 80.06 116.02 o Introduction of new hybrid 468 KPH471 & KRH7299 helped towards strong growth FY19 H1 FY20 H1 FY21 H1 o Contribution of New Hybrids went up fro
Slide 16: Outlook
15 Outlook Field o Early heavy rainfall during the crop maturity in Sept / Oct; has resulted in damage to the cotton crop which has impacted productivity and quality of output o Cotton commodity prices to remain lower due to poor quality & high carry over; Inventory has been impacted by poor demand
Slide 17: Q2 & H1FY20 Performance
Q2 & H1FY20 PERFORMANCE
Slide 18: Q2 & H1FY21 Performance Review
17 Q2 & H1FY21 Performance Review Standalone Consolidated Growth Growth Growth Growth Rs. lakhs Q2FY21 Q2FY20 H1FY21 H1FY20 Q2FY21 Q2FY20 H1FY21 H1FY20 (%) (%) (%) (%) Net Sales 8,336.43 7,742.77 7.67 83,182.84 73,289.48 13.50 13,402.18 11,766.00 13.91 85,350.49 74,523.77 14.53 Cost of Production 3,
Slide 19: Cash investments as on 30 September 2020
18 Cash investments as on 30 September 2020 Rs.in Lakhs All figures based on cost Fund House Liquid Liquid Plus FMP Shortterm Medium Grand Total ASK 2,293 2,293 AXIS 2,100 2,100 BIRLA 2,000 2,100 700 1,220 6,020 FRANKLIN 500 500 HDFC 1,500 3,800 5,300 ICICI 8,200 2,210 10,410 IDFC 2,000 2,000 KOTAK
Slide 20: Key Ratios
19 Key Ratios Standalone Consolidated As on As on As on As on Rs. Lakhs September September September September 30, 2020 30, 2019 30, 2020 30, 2019 Shareholders Fund 1,28,723.53 1,23,312.24 1,27,191.57 1,23,427.42 Long-term Debt 131.97 179.55 131.97 381.93 Fixed Asset Turnover (times) 3.14 5.33 3.09
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
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