Kaveri Seed Company (KSCL) Q4 17/18 earnings summary

Executive summary

• FY18 growth reflected stronger demand, improved capacity and customer mix; revenue from operations rose 15.30% and EBITDA rose 40.34% YoY.

• Value-added products and stable realisations supported a sharp rise in reported profit; FY17 included a ₹59.24 crore exceptional royalty-settlement charge.

Financial highlights

• Standalone revenue from operations was ₹772.40 crore, up 15.30%; operating profit was ₹374.65 crore, up 37.54% YoY.

• Standalone EBITDA was ₹241.70 crore, up 40.34%; PAT was ₹210.34 crore, up 168.05%; EPS was ₹31.36.

• Consolidated revenue was ₹819.37 crore and PAT after non-controlling interests was ₹211.24 crore; consolidated EPS was ₹31.49.

• Consolidated revenue growth spanned seeds, micronutrients and vegetables; sales were ₹793.09 crore, ₹24.08 crore and ₹2.21 crore, respectively.

Outlook and guidance

• Focus remained on increasing sales across multiple crops, expanding into new geographies and building export presence; product trials were underway in South Asian, Southeast Asian and African markets.

• Planned commercial focus included maize hybrids Drona, Godfather and Profit; Maximo in bajra; and KPH 468 in hybrid rice, alongside broader North and northeastern distribution.

• Research priorities included strengthening the multi-crop portfolio, particularly selection rice, maize and pearl millet, and developing hybrids suited to varied environmental stresses.