Hyderabad:  The Board of Directors of Kaveri Seeds Company Limited approved the financial results for the quarter and nine months ended 31st December 2020 at its meeting held in Secunderabad on Tuesday, 09th February 2021. The Accounts have been subjected to a Limited Review by the company’s Statutory Auditors.

Mr. GV Bhaskar Rao, Chairman & MD, Kaveri Seeds, said “We are encouraged by our performance and in particular the success of our new launches. Our Selection Rice and Hybrid Rice portfolios have grown strongly by over 45% YOY. Vegetable sales too have grown very well on the back of strong growth in Hot pepper, Tomato, Gourds & Okra. We are optimistic of maintaining this trajectory on the back of our strong connect with the farmer, diversified product portfolio and established R&D capabilities “

Once again, the industry has entrusted its faith in Kaveri Seeds and acknowledged our ongoing endeavors as we were awarded the ‘Best CSR Initiative in Agriculture Program’ and ‘Excellence in Seed Infrastructure-Processing’ during the India Seed Awards 2020 presented by Agriculture Today Group.

Financial Overview

	Q3FY21	Q3FY20	Growth	9MFY21	9MFY20	Growth
Rs. lakhs	(%)	(%)
Net Sales	11,854.80	12,198.84	-2.82	97,205.29	86,722.61	12.09
EBITDA	1,776.88	1,811.57	-1.91	35,535.48	28,048.56	26.69
EBITDA Margin (%)	14.99	14.85		36.56	32.34
PAT	911.20	825.46	10.39	32,786.32	25,146.39	30.38

Business Highlights

o   Strong operational performance. Operating EBITDA margins (excluding other income) stood at 32.29% in 9MFY21 versus 30.66% in 9MFY20

o   Cotton Acreages are higher by ~1.8% on YOY basis. Prices have increased due to low production globally and increased demand in anticipation of post Covid recovery. This has pushed prices above MSP

o   Maize acreages has been stable on a y-o-y basis while prices have currently decreased due to low demand and consumption

–     The main increase is in Kharif Maize in Karnataka, Maharashtra & Rajasthan states. Poor commodity prices have impacted Rabi Maize area

o   Hybrid rice industry growth at 8-10% while overall Kaveri hybrid rice is up by 48% 9MFY21

–     Scale up of KPH468 across market has resulted in volume and market share gain

o   Exports continue to be strong. Presently exporting to Pakistan, Sri Lanka, Bangladesh, and Vietnam

Crop wise detail

Cotton:

Volumes are almost stable in 9MFY21; lower by less than 2%

o   Gained cotton seed market share in Gujarat & Haryana markets

o   Lost sales in AP and Telangana

o   Contribution of new products went up from 31.23% to 35.47% of volume

o   New products include KCH 111 & Biplav Money Maker

Non-Cotton:

Business has grown significantly – up by 34.18 % 

o   Driven by volume growth in new hybrids and also price appreciation in key products

Maize:  

o   Maize volume has increased by 19.11% and revenue by 13.60%.

o   Contribution of new products went up from 7.71% to 9.27% of Volume

Hybrid Rice:

Volumes increased by 47.72% in 9MFY21

o   Introduction of new hybrid KPH 468 & KPH 471 & KPH 7299 helped towards strong growth

o   Contribution of New Hybrids went up from 50.09% to 67.84

Selection Rice:

Volumes grew by 49.98% in 9M FY21

o   Consistent performance across geographies. New products scale up on the back of growth in CHINTU, PRIZE & SAMPURNA

Vegetables:

Vegetable sales volumes increased by 150.57%

o   Major growth driven by Hot pepper, Tomato, Gourds & Okra

–      In Hot pepper KHPH 1213, KHPH 1217 & KHPH 1225

–      In Tomato KTH 354 & KTH 355

–      In Okra KOKH 1107

–      In Gourds Kaveri 88, Kaveri 67 & Kaveri Hero