Kaveri Seed Q4 Review - Higher Than Expected Operating Loss On Higher Fixed Cost: Motilal Oswal

A farmer holds handfuls of wheat seeds for a photograph. (Photographer: David Gray/Bloomberg).

Kaveri Seed Q4 Review - Higher Than Expected Operating Loss On Higher Fixed Cost: Motilal Oswal

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Motilal Oswal Report

Kaveri Seed Co.'s revenue increased 11% in FY21 on account of growth in hybrid rice, maize and vegetable seed segments, whereas cotton seed volumes fell 2%.

Performance was below our estimates in Q4 FY21.

However, we increase our FY22E/FY23E earnings estimate by 6%/10%, owing to:

  • increasing sales estimates in the non-cotton segment, particularly paddy,

  • increasing realisations in cotton, and

  • higher other income on higher cash.

Click on the attachment to read the full report:

Motilal Oswal Kaveri Seeds Q4FY21 Result Update.pdf

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