Kaveri seed has seen an impressive rampup in rice and vegetable revenues over past few years. However, due to cotton sales decline, consolidated sales have not shown much improvement.
FY23Q4 concall notes
- 10-12% revenue growth and 15-20% profit growth in FY23
- EBITDA margins should increase by 1-2%
- Looking to improve realizations in FY24
- Gained market share in rice as rice acreage was down by 4% but Kaveri’s revenues increased marginally by 2%. Seed replacement in rice has increased to 70%
- Hybrid Bajra can reach 100 cr. due to government’s push for higher millet acreage. Have good market share in Bajra
- Growth rates in maize should continue due to increasing demand from animal feed and biofuel blending demand
- Export grew by 44% (35% volume growth)
- R&D spends was 5% of revenues in FY23
- Bangladesh competition is mainly from MNC companies
- Sunflower: 28-30 cr. in FY23
Disclosure: Invested (position size here, no transactions in last-30 days)