IGI Logo

Kaveri Seed Company Ltd., the leading seed company, has declared its financial results for the Quarter ended September 30, 2023.

Key Financials (? in crore)

Commenting on the results, Mr. G V Bhaskar Rao, Chairman & Managing Director said, “ We are elated to announce our outstanding growth rates across key seed segments. Despite stable volumes in Rice and Cotton, our strategic approach has transformed better realizations into substantial revenue growth, fuelling a significant improvement in margins.

The surge in global rice prices has propelled a remarkable 10.80% increase in our rice cultivation area, marking a pivotal moment for our company. We are not only witnessing unprecedented success in our vegetable business but also aggressively expanding our footprint in international markets. Our focus now extends to countries like Tanzania, Algeria, Ivory Coast, Thailand, the Middle East, and Bangladesh, strengthening our position as a global leader in the seed industry."

Adding further he said “ I am also pleased to announce that the Board has recommended a 250% dividend, equivalent to Rs. 5 per equity share on a face value of Rs. 2 per equity share, reflecting our commitment to rewarding our shareholders for their trust and confidence in our company's growth journey." 

Q2FY24 – Standalone Financial Highlights 

* Revenue from Operations was at ? 96.12 crore as compared to ? 84.49 crore in Q2FY23; registered a growth of 13.77%

* EBITDA was at ? 19.79 crore as compared to ? 11.67 crore in Q2FY23; increased by 69.60%

* EBITDA Margin improved to 20.59% from 13.81% in Q2FY23, improved by 678 basis points

* Net Profit was at ? 10.72 crore as compared to ? 2.72 crore in Q2FY23; registered a growth of 2.94 times

H1FY24 - Financial Highlights

* Revenue from Operations has registered a growth of 5.75%, to ? 863.42 crore, as compared to ? 816.44 crore in H1FY23
* EBITDA was at ? 298.88 crore as compared to ? 259.72 crore in H1FY23; increased by 15.08%
* EBITDA Margin improved to 34.62% from 31.81% in H1FY23, improved by 301 basis points
* Net Profit grown by 14.45% to ? 278.56 crore as compared to ? 243.39 crore in H1FY23
 

Operational Highlights

* Cotton volumes are stable & revenues increased by 6.77%
* Hybrid Rice Volumes are stable but revenues increased by 9.97%
* Selection Rice volumes grew by 4.87% and revenues too grown by 14.80%
* Maize revenues were grown by 13.96%
* The Contribution of new products was up from 44.46% to 58.71% in Bajra
* Contribution of new products was up from 34.99% to 49.75% in Maize
* Vegetable seed sales volumes increased by 25.78% and revenues too grown by 20.64%
* Vegetable Crops like Bitter Gourd, Tomato, Okra & Watermelon have done well
* Export Business is increased by 146.49% on account of expanding to newer geographies
* Maize Export sales Volumes increased by 129.91% and revenues by 140.52%
* Board has recommended 250% dividend i.e. Rs. 5 per equity share on a FV of Rs. 2 per equity share

Above views are of the author and not of the website kindly read disclaimer