Kaveri Seed Company (KSCL) Q4 12/13 earnings summary

Executive summary

• FY13 delivered record growth despite weak agricultural conditions: revenue of ₹715.83 crore rose 90.89% YoY, operating profit reached ₹139.44 crore and net profit ₹129.87 crore, up 123.51%.

• Cotton brands Jadoo and Jackpot contributed over 50% of revenue; hybrid cotton-seed market share doubled to 10% from 5% in FY12.

Financial highlights

• Gross turnover was ₹710.84 crore, up 90.85% YoY; net profit after tax was ₹129.87 crore versus ₹58.10 crore, up 123.51%.

• Total revenue, including other income, was ₹715.83 crore versus ₹375.00 crore; operating profit was ₹139.44 crore versus ₹76.96 crore.

• Basic EPS increased to ₹94.78 from ₹42.40; cash from operating activities was ₹109.91 crore versus ₹109.94 crore.

Outlook and guidance

• Strategy: consolidate cotton, pearl millet and maize; scale up paddy and sunflower; pursue hybrid rice as a growth opportunity amid expanding farmer adoption.

• Planned continued R&D investment in stress-resistant, climate-resilient hybrids; pipeline spans corn, cotton, rice, bajra and sunflower, with launches expected over the next 2–3 years.

• Kexveg planned to double protected-cultivation area within a couple of years and scale further over 3–4 years, targeting premium vegetable and herb markets, including exports.

• Market expansion plans include Chhattisgarh, Jharkhand, West Bengal and Odisha, building on a strong southern presence.