ICICI Securities: Kaveri Seed Logs Healthy Growth In Non-Cotton Seed Portfolio   
Corn grows in a field in India. (Photographer Karen Dias/Bloomberg)

ICICI Securities: Kaveri Seed Logs Healthy Growth In Non-Cotton Seed Portfolio   

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Kaveri Seed Company Ltd. reported revenue, Ebitda and profit after tax growth of 14.6%, 21.5% and 29.1%, respectively. Cotton, hybrid rice, maize and selection rice seeds reported volume growth of 5.1%, 44.4%, 6.7% and 23%, respectively.

With cost saving measures, Ebitda margin expanded 230 basis points YoY. Net profit grew 29.1% YoY. Kaveri Seed’s Q1 FY21 profit after tax margin (41.2%) was highest in past six years.

Revenues of cotton, hybrid rice, maize and selection rice seeds were up 4.8%, 53.2%, 8.7% and 28%, respectively.

10% higher sowing in Kharif season and early monsoon helped the company report strong revenue growth. Higher revenue growth of premium products boosted the realisations. Vegetable seed revenues were up 250% (albeit on a smaller base).

We remain positive on Kaveri with the success of non-cotton seeds and its market share gains in cotton seeds in new geographies of West and North India. Success of these initiatives will de-risk the current business model centred on cotton seeds in South India.

Click on the attachment to read the full report:

ICICI Securities Kaveri Seed Q1FY21 Results Update.pdf

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