Kaveri Seed Company (KSCL) Q4 21/22 earnings summary

Executive summary

• FY22 results were weighed down by Q1 COVID-related shutdowns and supply-chain disruptions, which affected revenue, volumes and sowing patterns across cotton and non-cotton crops.

• Despite headwinds, performance exceeded the seed industry in revenue and volume terms; demand improved across cotton, rice, maize and vegetable seeds.

Financial highlights

• Consolidated revenue from operations was ₹969.98 crore vs ₹1,036.31 crore in FY21; EBITDA was ₹243.81 crore vs ₹343.76 crore.

• Consolidated profit after tax attributable to shareholders was ₹212.45 crore vs ₹310.50 crore; consolidated EPS was ₹36.37 vs ₹52.23.

• Standalone revenue was ₹915.00 crore, down from ₹986.98 crore; standalone PAT was ₹208.90 crore vs ₹305.31 crore and EPS was ₹35.23 vs ₹50.61.

• Operating cash flow was ₹110.23 crore standalone and ₹110.23 crore consolidated? Consolidated net cash from operations was ₹110.23 crore vs ₹251.86 crore in FY21.

Outlook and guidance

• Management expected FY23 demand to improve, supported by higher global commodity prices and favorable demand across cotton, rice, maize and vegetable seeds.

• Planned new variants across non-cotton categories, including rice, maize, pearl millet and vegetables, using the existing distribution network to expand market presence.

• Vegetable business turnover was ₹45 crore in FY22, with a FY23 plan of ₹65 crore.