Kaveri Seed Q1 Review - Lower Cotton Seed Volumes Drag Down Overall Performance: Motilal Oswal

Kaveri Seed Q1 Review - Lower Cotton Seed Volumes Drag Down Overall Performance: Motilal Oswal

Cotton seeds are held for a photograph in a factory which produces oil from the product in Wankaner, India. (Photographer: Adeel Halim/Bloomberg)

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Motilal Oswal Report

Kaveri Seed Company Ltd.'s Q1 FY22 revenue fell 12% on account of de-growth in the cotton and maize, offset by growth in the hybrid rice and vegetables segments.

Kaveri Seed's cotton seed sales volumes were impacted by lower cotton acreage and the use of herbicide-tolerant seeds, which further impacted branded seed sales.

Also, the pandemic affected the supply chain, resulting in the lower absorption of cotton hybrids by dealers and distributors and the consequent unavailability for the farmer.

Operating performance was further impacted by write-offs over government dues and the absence of operating leverage.

Click on the attachment to read the full report:

Motilal Oswal Kaveri Seed Q1FY22 Result Update.pdf
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