Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — Q1 FY2021 Earnings Presentation
24 slides from Kaveri Seed's earnings presentation, Aug 14, 2020
Slide 1: Exchange cover letter: revised Q1 FY21 presentation
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Slide 2: Results Presentation – Q1FY21
Kaveri Seed Company Limited Results Presentation – Q1FY21
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 Crop-wise area coverage during Kharif 2020-2021: As on Aug 07, 2020 Area in lakh hectare o Cotton, Bajra and Rice acreage has increased CROP 2020 -21 2019-20 YOY CHANGE YOY Cotton 123.67 118.73 4.94 Maize 75.88 75.29 0.59 o Vegetables have shown robust growth in Rice 321.79 274
Slide 6: Industry Backdrop – All India Rainfall
5 Industry Backdrop – All India Rainfall Source: IMD
Slide 7: Industry Backdrop – Rainfall Information
6 Industry Backdrop – Rainfall Information Source: IMD
Slide 8: Industry Backdrop – All India Rainfall
Industry Backdrop – All India Rainfall 7 Source: IMD
Slide 9: Industry Backdrop - Cotton
8 Industry Backdrop - Cotton Area coverage during Kharif 2020 as on 07 Aug, 2020 Area in lakh hectare YoY Abs State 2020-21 2019-20 Change Andhra Pradesh 4.76 4.18 0.58 Telangana 22.77 17.24 5.53 Gujarat 22.48 24.70 -2.22 o Sowing took place earlier in all states this year compared to last year Hary
Slide 10: Industry Backdrop - Maize
9 Industry Backdrop - Maize Area coverage during Kharif 2020 as on 07 Aug, 2020 Area in lakh hectare YoY Abs State 2020-21 2019-20 Change Andhra Pradesh 0.73 0.66 0.07 Bihar 3.84 3.64 0.20 Chhattishgarh 2.26 1.96 0.30 Gujarath 2.79 2.94 -0.15 Harayana 0.12 0.49 -0.37 Jharkhand 2.67 2.47 0.20 Karnata
Slide 11: Industry Backdrop – Commodity Prices Maize
10 Industry Backdrop – Commodity Prices Maize State Prices August, 2020 Prices August, 2019 % Change(Over Previous Year) Prices July, 2020 % Change(Over Previous Month) Andhra Pradesh __ 1653.81 __ 1444.19 __ Assam __ 1623.47 __ __ __ Chattisgarh 1070.01 1852.68 -42.25 1132.43 -5.51 Gujarat 1595.31
Slide 12: Industry Backdrop – Commodity Prices Cotton
11 Industry Backdrop – Commodity Prices Cotton State Prices August, 2020 Prices August, 2019 % Change(Over Previous Year) Prices July, 2020 % Change(Over Previous Month) Andhra Pradesh __ 6,012.23 __ __ __ Gujarat 4,175.15 5,876.06 -28.95 4,124.39 1.23 Haryana __ 5,779.53 __ 4,800.00 __ Karnataka 4,
Slide 13: Q1FY21 Business Highlights
Q1FY21 Business Highlights 12 o Strong operational performance. Operating EBITDA margins (excluding other income) at 39.88% in Q1FY21. Sales growth was robust at 14.64% o EPS of Rs. 49.67 for the period ended June 30, 2020 as compared to Rs.36.37 for the period ended June 30, 2019, growth of 36.57%
Slide 14: Q1FY21 Crop wise detail
13 Q1FY21 Crop wise detail Cotton seed revenue & volumes Cotton: 6.99 6.65 Volumes increased by about 5% in Q1FY21 5.86 Cotton sales increased slightly due to early sowing this year. Have gained some volume in North & West 377.60 405.09 424.71 markets FY19 FY20 FY21 Net Revenues (Rs cr) Sales Volume
Slide 15: Q1FY21 Crop wise detail
Q1FY21 Crop wise detail 14 Hy Rice Seed revenue & volumes Hybrid Rice 4,937.08 Volumes Increased by 44% & increase in revenue by 53% 3,420.20 in Q1FY21 2,233.17 o Hybrid Paddy KPH 468 helped translate to strong 43.40 74.46 114.10 growth FY19 FY20 FY21 o 2 New Hybrids KPH 471 & KPH 7299 show good Net
Slide 16: Q1FY21 Crop wise detail
Q1FY21 Crop wise detail 15 Vegetable Seed revenue & volumes Vegetables:- 17.63 Vegetable volumes increased more than 175% in 6.20 revenue. Revenues too have grown at similar levels 5.09 5.02 5.37 15.11 o Three major crops helped in the growth of Volume FY19 FY20 FY21 and revenue i.e. Hot Pepper, Okr
Slide 17: Outlook
16 Outlook Field Crop o Kharif acreages has been overall stable for maize except in Telangana and some eastern states. Maize prices are down and farmers have large inventories in key markets .In case of no improvement in prices there may be pressure on acreages in Rabi o Area for cotton is down in k
Slide 18: Outlook
17 Outlook Vegetables o Vegetables that is performing extremely well over the longer duration is the new OKRA hybrid KOKH 1107 o Outlook for hybrid Okra KOKH 1107, is extremely positive this year too o CLCV virus resistant hot pepper hybrids has been identified and used for this season and the revie
Slide 19: Q1FY21 Performance
Q1FY21 PERFORMANCE
Slide 20: Q1FY21 Performance Review
19 Q1FY21 Performance Review Standalone Consolidated Growth Growth Rs. lakhs Q1FY21 Q1FY20 Q1FY21 Q1FY20 (%) (%) Net Sales 74,846.41 65,546.71 14.19 71,948.31 62,757.77 14.64 Cost of Production 41,733.91 35,109.00 18.87 37,708.79 31,484.42 19.77 Gross Profit 33,112.50 30437.71 8.79 34,239.52 31273.3
Slide 21: Cash investments as on 30th June 2020
20 Cash investments as on 30th June 2020 Rs.in Lakhs All figures based on cost Fund House Liquid Liquid Plus FMP Shortterm Medium Total ASK 2,293 2,293 Axis 2,100 2,100 BIRLA 2,000 2,100 1,220 5,320 DSP 1,000 1,000 FRANKLIN 500 500 HDFC 2,500 1,500 3,800 7,800 ICICI 5,000 2,210 7,210 IDFC 2,000 2,00
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 — Q1 FY2021 Earnings Presentation on 6ix