Kaveri Seed Company (KSCL) Q4 16/17 earnings summary

Executive summary

• FY2016-17 standalone revenue declined 6.5% YoY to ₹66,989.10 lakh; PAT fell 54.45% to ₹7,847.12 lakh, including a ₹5,923.80 lakh exceptional royalty provision.

• A weaker Kharif season and demonetisation-related market slowdown weighed on seed demand; market share grew in most key crops, while maize volumes and share advanced.

Financial highlights

• Standalone revenue from operations was ₹66,989.10 lakh vs ₹71,652.95 lakh; EBITDA was ₹17,222.57 lakh vs ₹20,250.90 lakh.

• Standalone PAT was ₹7,847.12 lakh vs ₹17,227.96 lakh; EPS was ₹11.36 vs ₹24.95.

• Consolidated revenue from operations declined 5.23% YoY to ₹70,635.76 lakh; consolidated PAT fell 53.64% to ₹7,783.34 lakh.

• Standalone operating cash flow was ₹21,404.38 lakh vs ₹24,691.34 lakh; cash and cash equivalents ended FY17 at ₹1,692.31 lakh.

Outlook and guidance

• FY17-18 was expected to post robust growth, supported by a normal or above-normal Kharif monsoon forecast, diversified products, national reach and adequate seed availability.

• Priorities include market-share gains in cotton, wider northern, eastern and western reach, growth in maize and hybrid paddy, and new products in cotton, maize, pearl millet, paddy and vegetables.

• Vegetable seeds and international expansion were identified as opportunities to diversify risk and support growth.