Kaveri Seed Company (KSCL) Q2 24/25 earnings summary

Executive summary

• Revenue from operations grew 3% year-over-year to INR 889.84 crore for H1 FY25, with EBITDA and net profit remaining flat at INR 299.68 crore and INR 279.41 crore, respectively.

• Board recommended a 250% dividend (INR 5 per share on face value of INR 2), payable to shareholders as of 26 November 2024.

• Non-cotton segment grew 24% in H1, driven by selection rice, hybrid rice, and maize.

• Export sales declined due to unrest in Bangladesh, impacting overall revenue and profitability.

• Un-audited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were reviewed and approved by the Board on 13 November 2024.

Financial highlights

• H1 FY25 revenue: INR 889.84 crore (up 3.06% YoY); EBITDA: INR 299.68 crore (margin 33.68%); Net profit: INR 279.41 crore (margin 31.40%).

• Q2 FY25 revenue: INR 81.76 crore; EBITDA: INR 6.89 crore; Net profit: INR 3.49 crore.

• Cash on books at INR 559 crore, down from INR 732 crore.

• Standalone EPS for H1 FY25 was Rs. 54.32 (not annualised); consolidated EPS was Rs. 56.66 (not annualised).

• Consolidated revenue from operations for H1 FY25 was Rs. 94,066.64 lakhs, with net profit after tax at Rs. 29,028.43 lakhs.

Outlook and guidance

• Exports expected to recover in H2 as Bangladesh stabilizes; overall export growth projected at 15%-20% YoY from the new base.

• Cotton segment expected to grow at least 20% next year, with potential to return to INR 500 crore in 3-4 years.

• Non-cotton segment projected to maintain double-digit growth (12%-15%) even on a higher base.

• Overall company growth expected at 15%-20% for the next 3-4 years, with bottom line growth above 20%.

• Interim dividend signals confidence in ongoing profitability and cash flow generation.