Kaveri Seed Co. Ltd. · NSE:KSCL
Kaveri Seed — Q4 FY2020 Earnings Presentation
24 slides from Kaveri Seed's earnings presentation, May 30, 2020
Slide 1: Exchange filing cover letter
keveni seed company limited koveri seeds 30th May 2020 Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd. 1st Floor New Trading RinS Exchange Plaza, 5th Floor, Rotimda Building Plot No.C/1, G Block, P.J.Towers, Dalal Street, Fort Bandra Kurla Complex, Barrdra (E) MUMBAI - 4OO OO1 MUMB
Slide 2: Results Presentation – Q4 & FY20
Kaveri Seed Company Limited Results Presentation – Q4 & 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 FY20 cotton acreage has increased over the previous year o Crop-wise area coverage during Kharif & Rabi 2019-20 Area in lakh hectare o All crop sowing has been higher due to an STATE 2019 -20 2018 - 19 YOY CHANGE increase in the Rabi area Cotton 127.67 121.05 6.62 Maize 98.89 9
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 27 SEP, 2019 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Andhra Pradesh 6.33 5.69 0.64 Telangana 18.60 17.96 0.63 o Acreages have marginally reduced in Gujarat & MP Gujarat 26.67 27.12 -0.45 Haryana 7.01 6.65 0.36 o So
Slide 10: Industry Backdrop - Maize
9 Industry Backdrop - Maize Area coverage during Kharif & Rabi 2019-20 Area in lakh hectare YoY Abs State 2019-20 2018-19 Change Andhra Pradesh 2.58 2.45 0.13 Bihar 9.03 8.71 0.32 Chhattishgarh 2.91 2.92 -0.01 Gujarath 4.34 4.10 0.24 Harayana 0.49 0.26 0.23 Jharkhand 2.57 2.59 -0.02 Karnataka 13.02
Slide 11: Industry Backdrop – Commodity Prices Cotton
10 Industry Backdrop – Commodity Prices Cotton State Prices March, 2020 Prices March, 2019 % Change(Over Previous Year) Prices Febraury, 2020 % Change(Over Previous Month) Gujarat 4639.44 5478.57 -15.32 4914.39 -5.59 Haryana 5104.82 5684.2 -10.19 5099.66 0.1 Karnataka 4827.37 5327.02 -9.38 4950.21 -
Slide 12: Industry Backdrop – Commodity Prices Maize
11 Industry Backdrop – Commodity Prices Maize Prices March, Prices March, % Change(Over Prices Febraury, % Change(Over State 2020 2019 Previous Year) 2020 Previous Month) Chattisgarh 1488.87 1784.65 -16.57 1644.27 -9.45 Gujarat 1780.54 1980.92 -10.12 1854.76 -4 Karnataka 1477.57 1919.76 -23.03 1722.
Slide 13: FY20 Business Highlights
FY20 Business Highlights 12 o Strong operational performance. Operating EBITDA margins (excluding other income) at 27.12% in FY20. Sales growth was robust at 14.86%. o Cob drying facility helped enhance quality of seed and ensure timely deliveries o Proper planning and placement helped to increase s
Slide 14: FY20 Business Highlights
FY20 Business Highlights 13 o COVID 19 – Kaveri Seed’s business minimally impacted by pandemic • Presence in ‘Essential Services’ ensures no discontinuity in operations – Initial supply chain challenges ironed out with Government support • Placement for forthcoming season progressing well – Cotton b
Slide 15: FY20 Crop wise detail
14 FY20 Crop wise detail Cotton seed revenue & volumes Cotton: 7.23 6.96 Volumes increased by about 17% in FY20 6.20 o Contribution of new products went up from 14.85% to 23.11% of total volume 458.45 399.65 450.21 FY18 FY19 FY20 o Money Maker Scale up across market this year. 2 new Cotton hybrids u
Slide 16: FY20 Crop wise detail
FY20 Crop wise detail 15 Hy Rice Seed revenue & volumes Hybrid Rice Volumes increased by 60% & increase in revenue by 3,831.72 2,392.42 65.54% in FY20 1,729.93 o Contribution of new products went up from 26.46% 33.98 51.35 85.00 to 50.80% of volume FY18 FY19 FY20 o New hybrid Paddy KPH 468 helped tr
Slide 17: Outlook
16 Outlook Field Crop o Commodity prices are expected to be stable with a normal monsoon forecast translating to good farmer sentiment for coming year for all Crops o Normal monsoon forecast will ensure normal sowing area for key crops o New Hybrids scale up in Hybrid Paddy, Cotton & Maize will cont
Slide 18: Q4 & FY20 Performance
Q4 & FY20 PERFORMANCE
Slide 19: Q4 & FY20 Performance Review
18 Q4 & FY20 Performance Review Standalone Consolidated Growth Growth Growth Growth Rs. lakhs Q4FY20 Q4FY19 FY20 FY19 Q4FY20 Q4FY19 FY20 FY19 (%) (%) (%) (%) Net Sales 5,191.69 4,472.18 16.09 88,325.60 76,898.90 14.86 6,312.02 5,335.70 18.30 93,034.63 80,941.81 14.94 Cost of Production 2,969.26 2,41
Slide 20: Cash investments as on 31st March 2020
19 Cash investments as on 31st March 2020 Rs.in Lakhs All figures based on cost Fund House Liquid Liquid Plus FMP Shortterm Medium Total ASK 2,293 2,293 BIRLA 2,100 1,220 3,320 FARANKLIN 500 500 HDFC 4,905 3,800 8,705 ICICI 3,000 2,991 5,991 IDFC 1,500 59 1,559 IIFL 2,705 2,705 KOTAK 500 2,100 2,600
Slide 21: Ratios
20 Ratios Standalone Consolidated As on March As on March As on March As on March Rs. Lakhs 31, 2020 31, 2019 31, 2020 31, 2019 Shareholders Fund 98,185.04 1,01,295.95 95,890.91 1,00,625.15 Long-term Debt 155.76 187.06 578.78 678.06 Fixed Asset Turnover (times) 3.37 3.20 3.41 3.20 Current Assets / C
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 — Q4 FY2020 Earnings Presentation on 6ix