The company’s operating loss increase to Rs 124 million in 4QFY21
Agriculture company Kaveri seeds has posted its results for FY21. The revenue increased 11 per cent in FY21 on account of growth in hybrid rice, maize and vegetable seed segments, whereas cotton seed volumes fell 2 per cent.
The maize and paddy drove the overall performance. The standalone revenue stood at Rs 551 million in 4QFY21, up 6 per cent YoY. Operating loss increased to Rs 124 million in 4QFY21 v/s a loss of Rs 117 million in 4QFY20. The gross margin stood at 56.7 per cent in 4QFY21 v/s 42.8 per cent last year. As a percentage of sales, employee cost/other expenses increased to 34 per cent/45.2 per cent in 4QFY21 v/s 26.8 per cent/38.7 per cent in 4QFY20. It reported a net loss of Rs 143 million in 4QFY21 v/s a net profit of Rs 94 million in 4QFY20.
Cottonseed volumes declined marginally by ~2 per cent to 7.09 million packets in FY21 due to lower sales in Andhra Pradesh and Telangana, leading to a revenue drop of 2.2 per cent to Rs 4,404 million. Contribution from new products rose to 25.2 per cent of volumes from 23.8 per cent. Hybrid paddy reported 56 per cent revenue growth (to Rs 1,325 million) in FY21 on 48 per cent volume growth. Introduction of new hybrids – 7299, 471, and 473 – aided strong volume growth. Volume contribution from new hybrids rose to 68 per cent from 51 per cent.
Revenue from maize seeds grew ~18 per cent (to Rs 2,032 million) in FY21 due to a better product mix and stable contribution from new products. The consolidated revenue/EBITDA/adjusted PAT grew 11 per cent/18 per cent/20 per cent in FY21. KSCL generated a CFO of Rs 2.5 billion (up 31 per cent YoY) in FY21 on the back of higher payables and lower receivables. This was offset by higher inventory.
