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Earnings Call Transcript

Kaveri Seed Company Earnings Call Transcript: Key Takeaways

Management struggled to explain a 13.7% revenue drop despite maintaining margins, blaming poor rainfall for severe de-growth in major markets like Karnataka and Madhya Pradesh.

Guidance and delivery
Management target Revenue 18.0% FY29
Highlights
Revenue growthRevenue declined 13.7% YoY due to El Nino and delayed monsoon.
MarginsEBITDA margin steady at 35% aided by 5% lower production costs.
Demand visibilityDelayed demand; visibility depends on rain returning to Karnataka and Maharashtra.
Management confidenceDefensive regarding market share loss but optimistic about new hybrid performance.

Growth

Revenue fell to 815 Cr from 945 Cr; EBITDA margins held steady at 35% through lower production costs.

Outlook

Management aims for 15-20% long-term growth and expects recovery in Q2 if rains improve.

Risks

High inventory levels of 1200 Cr, competition from illegal BT cotton, and significant market share loss.

Last quarter's promises, checked

Delivered

  • Guided 15% revenue growth FY26 → delivered 16.25% (= BEAT)
  • Guided 6.8% PAT growth FY26 → delivered 6.81% (= BEAT)
  • Guided higher gross margins → delivered 35% EBITDA margin (= BEAT)

Missed

  • Guided 15-20% revenue growth → delivered -13.7% (= MISS)
  • Guided 20% cotton volume growth → delivered double-digit de-growth (= MISS)
  • Guided Maize as key growth revenue → delivered -40% volume (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: KSCL. Summary written with AI assistance from the document.

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Kaveri Seed Company Ltd: key numbers

Share price
₹804.55
Market cap
₹4,139 Cr
Revenue (annual)
₹1,395 Cr
Net profit (annual)
₹295.8 Cr
P/E (TTM)
16.6×Sector 29.0×
Promoter holding
60.50%+0.00% QoQ
FII holding
17.54%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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