Q1 2025 Kaveri Seed Company Ltd Earnings Call Transcript
Key Points
- Kaveri Seed Co Ltd (BOM:532899) reported significant growth in maize and rice volumes, with maize volumes increasing by 97% and revenues by 80%, and hybrid rice volumes increasing by 10% and revenues by 17%.
- The company successfully introduced new products, with the contribution of new products in Bajra increasing from 67.67% to 75.79% and in maize from 40% to 52%.
- Export business sales saw a substantial increase of 451.73% compared to the same quarter last year.
- The company is optimistic about future growth in maize and rice due to increased sowing areas and favorable market conditions.
- Kaveri Seed Co Ltd (BOM:532899) has a diversified portfolio, which helps mitigate risks associated with individual crop performance.
- Cotton volumes and revenues experienced a significant decline, with volumes down by 35% and revenues by 27%.
- The company faced production constraints due to pest infestations and unfavorable weather conditions, impacting the availability of popular hybrids.
- The cost of production has increased, and the company was unable to pass on these costs to farmers due to government price controls, particularly in the cotton segment.
- The company's earnings are highly seasonal, with the first quarter being the most significant, which can lead to revenue fluctuations throughout the year.
- Despite the overall growth, the company anticipates only a 5% to 7% increase in profitability for the year, falling short of the previously guided 15% to 20% growth.
Ladies and gentlemen, good day, and welcome to Kaveri seed companies Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
Before we begin, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risk and uncertainties. For a list of such considerations, please refer to the earnings presentation.
I now hand the conference over to Mr. Mithun Chand, Executive Director. Thank you, and over to you, sir.
Thank you. Good afternoon and welcome everyone to our quarter one financial year '25 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on our website. I would touch upon the operational financial performance of the company and then open the floor for a question-and-answer session.
The company is very bullish on both Maize and Rice and expect both volumes and realizations to go up
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