Kaveri Seed Company (KSCL) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue from operations rose 14.86% YoY to ₹883.26 crore; EBITDA increased 15.16% to ₹286.09 crore and PAT rose 17.02% to ₹251.27 crore.

• Consolidated revenue reached ₹930.35 crore and PAT after non-controlling interests was ₹259.04 crore; growth was supported by value-added products and continued portfolio expansion.

Financial highlights

• Standalone total income was ₹929.81 crore versus ₹811.86 crore in FY19; profit before tax was ₹261.56 crore versus ₹227.13 crore.

• Consolidated PBT increased to ₹272.65 crore from ₹231.14 crore; consolidated PAT was ₹259.90 crore before ₹0.87 crore attributable to non-controlling interests.

• Standalone EPS was ₹40.14 versus ₹33.30; consolidated EPS was ₹41.82 versus ₹33.72.

• Other income included investment-sale gains of ₹39.36 crore standalone and ₹40.07 crore consolidated; fair-value gains on investments were ₹2.92 crore in both presentations.

Outlook and guidance

• Priorities include continued R&D investment, stronger supply-chain capabilities, new product introductions, and market-share gains in Punjab, Rajasthan and Uttar Pradesh.

• Management expected minimal COVID-19 impact at the time of approval, citing continued seed operations and expected recovery of receivables, inventory, investments and other financial assets.

• India’s FY21 food-grain production target was 298.3 million tonnes, over 2% above the prior year’s estimate; this is an industry target, not company guidance.