Kaveri Seed Company (KSCL) Q4 22/23 earnings summary

Executive summary

• FY23 standalone revenue rose 9.35% YoY to ₹1,000.56 crore; EBITDA increased 24.55% and PAT 27.83%, with volume growth across crop segments.

• EBITDA and PAT margins expanded to 28.07% and 25.24%; management expects growth and margins to remain resilient, supported by hybridisation and new products.

• Consolidated results included a material uncertainty over one subsidiary’s ability to continue as a going concern; the consolidated audit opinion was not modified.

Financial highlights

• Standalone revenue from operations was ₹1,00,056.43 lakh vs ₹91,500.02 lakh; EBITDA was ₹29,694.08 lakh vs ₹23,840.59 lakh.

• Standalone PAT was ₹26,704.45 lakh vs ₹20,890.31 lakh; EPS rose to ₹46.35 from ₹35.23.

• Consolidated revenue was ₹1,07,035.53 lakh vs ₹96,998.16 lakh; PAT after non-controlling interests was ₹27,172.55 lakh vs ₹21,245.19 lakh.

• Standalone other income included ₹5,846.95 lakh profit on investment sales and a net ₹735.38 lakh fair-value loss on investments.

Outlook and guidance

• Management expects growth across cotton and non-cotton seeds to continue and is confident of maintaining and strengthening margins.

• Rising hybridisation and higher contributions from new products supported FY23 results; a hybrid pipeline is expected to support growth over the next 5–10 years.

• Management sees government support for domestic research and approvals of new hybrid varieties as favorable for expansion and seed-technology development.