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koveri seeds
Dear Sir,
Please find attached herewith Presentation of Kaveri Seed Company Limited Q3 & FY
2017 Result announced on 31st January, 2017. The same was displayed at our
Company's website at www.kaveriseeds.in
Thanking you,
Yours faithfully,
AVER1 SEED COMPANY LIMITED
CHAND
LE TIME DIRECTOR
\
Encls: a/a.
Regd. Office : # 513-8, 5th Floor, Minerva Complex, S.D. Road, Secunderabad - 500 003. Telangana, India
Tel : +91-40-2784 2398, 2784 2405 Fax : +91-40-2781 1237 e-mail : info@kaveriseedsh
CIN : LO1120AP1986PLC006728
Results Presentation Q3 & 9M FY17
Safe Harbour
Certain statements in this document may be forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties like government actions, local political or economic developments,
technological risks, and many other factors that could cause our actual results to differ materially from those
contemplated by the relevant forward looking statements. Kaveri Seed Company Limited will not be in any way
responsible for any action taken based on such statements and undertakes no obligation to publicly update
these forward-looking statements to reflect subsequent events or circumstances.
2
Contents
2 Business Overview
3 Appendix
3
Quarterly Performance & Outlook
Industry Backdrop
5
Industry Backdrop - Rainfall
Source: IMD
6
Industry Backdrop - Rainfall
Source: IMD
7
Industry Backdrop - Rainfall
Source: IMD
8
Industry Backdrop Commodity Prices
Cotton
YoY QoQ
Rs. Per Quintal Jan. 2017 Jan. 2016 Dec. 2016
Change % Change %
Source: AGMARKNET
9
Ind-AS Reconciliation
Reconciliation between the profits as reported earlier and the Ind AS recast profits for the quarter and nine months
ended December 31, 2016
Q3 FY16 9M FY16
Particulars
Rs (in Lakhs) Rs (in Lakhs
Net Profit reported as per IGAAP 1,245.55 18,688.38
(i) Recognition of Biological assets 50.08 (55.91)
(ii) Restatement of Grant and Subsidies (0.51) (1.65)
(iii) Fair value adjustment of Financial Assets (0.41) (3.91)
(iv) Tax on above adjustments 66.14 84.02
(v) Profit on sale of Investments (186.72) (441.68)
Net profit recast to Ind AS 1,174.12 18,269.24
Amount of "Sales Schemes" grouped under "Other Expenses representing amounts in the nature of discounts and
rebates, have been reduced from Net Sales as a result of Ind-AS adjustment for the quarters ended 31.12.2016,
30.09.2016, 31.12.2015 and for the nine months ended 31.12.2016 and 31.12.2015. The said adjustment has not been
carried out for year end figures of March 31,2016 which has been disclosed in accordance with accounting standards
notified under the Companies(Accounting Standards). Schemes & incentives which typically would form 18-20% of
Revenues would as per Ind-AS not form part of Revenues
The Company has valued financial assets (other than investments in subsidiaries which are accounted at cost), at fair
value. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes
thereafter are recognized in Profit and Loss account or Other Comprehensive Income, as the case may be
Profitability impacted by : Other income 3,258.28 742.61 338.8 1,009.72 241.32 318.4
Write-off of Rs. 7 cr in Q3FY17 as EBITDA 19,762.02 20,471.15 3.5 1,349.94 1,866.87 (27.7)
against none in Q3FY16
EBITDA Margin (%) 31.39% 30.31% 19.90% 26.76%
Other Expenses higher due to Rs. 5.22
cr of CSR expense in Q3 FY17 as Depreciation 2,193.69 1,802.99 21.7 689.30 755.09 (8.7)
against Rs. 0.55 cr in Q3 FY16
Finance Cost 7.95 12.94 (38.6) 4.23 3.79 11.6
Significantly higher Other income
resulted in higher capital gains tax PBT 17,560.37 18,655.23 (5.9) 656.40 1,108.00 (40.8)
translating to higher tax outflow PAT 16,566.59 18,269.24 (9.3) 355.25 1,174.12 (69.7)
In FY16, the Company based on PAT Margin 26.31 27.05 5.24 16.83
notifications of various state
governments, short provided the
royalty by Rs. 65.5 crore. The same had
been included in contingent liability 11
Cash investments as on 31 December 2016
Rs.in Lakhs
Fund House Liquid Liquid Plus FMPs Short Term RE Fund Medium Term Total
Cotton seed revenue & volumes Rice seed revenue & volumes Maize seed revenue & volumes
788.0
784.0
780.0 9.0 *includes hybrid & research
776.0
772.0
768.0
764.0
760.0
756.0
752.0
748.0 8.5 84.0 7.1 8.0 200.0 10.9 10.4
744.0
740.0
736.0
732.0
728.0
724.0
720.0
716.0 80.0 7.0
712.0
708.0
704.0
700.0
696.0
692.0
688.0
684.0
680.0 8.0 76.0 7.0 180.0 8.7 10.0
676.0
672.0
668.0
664.0
660.0
656.0
652.0
648.0 72.0 7.0
644.0
640.0
636.0
632.0
628.0
624.0
620.0
616.0
612.0 7.0 68.0 160.0
608.0
604.0
600.0
596.0
592.0
588.0
584.0
580.0 64.0
576.0
572.0
568.0
564.0
560.0
556.0
552.0
548.0 5.5 5.4 60.0 6.0 8.0
544.0
540.0
536.0
532.0
528.0
524.0
520.0
516.0
512.0 6.0 140.0
508.0
504.0
500.0
496.0
492.0
488.0
484.0
480.0 56.0
476.0
472.0
468.0
464.0
460.0
456.0
452.0
448.0 52.0 5.0 120.0
444.0
440.0
436.0
432.0
428.0
424.0
420.0
416.0 5.0 48.0 6.0
412.0
408.0
404.0
400.0
396.0
392.0
388.0
384.0
380.0 44.0
376.0
372.0
368.0
364.0
360.0
356.0
352.0
348.0 4.0 40.0 4.0 100.0
344.0
340.0
336.0
332.0
328.0
324.0
320.0
316.0
312.0 36.0
308.0
304.0
300.0
296.0
292.0
288.0
284.0
280.0 32.0 3.0 80.0
276.0
272.0
268.0
264.0
260.0
256.0
252.0
248.0
244.0 3.0 28.0 4.0
240.0
236.0
232.0
228.0
224.0
220.0
216.0
212.0 24.0 60.0
208.0
204.0
200.0
196.0
192.0
188.0
184.0
180.0
176.0 2.0
172.0
168.0
164.0
160.0
156.0
152.0
148.0
144.0 2.0 20.0
140.0
136.0
132.0
128.0
124.0
120.0
116.0
112.0 16.0 40.0 2.0
108.0
104.0
100.0
96.0
92.0
88.0
84.0
80.0 1.0 12.0 1.0
76.0
72.0
68.0
64.0
60.0
56.0
52.0
48.0 749 495 412 8.0 70 78 76 20.0 167 149 188
44.0
40.0
36.0
32.0
28.0
24.0
20.0
16.0
12.0 4.0
8.0
4.0
- - - - - -
9MFY15
9MFY16
9MFY17
9MFY15
9MFY16
9MFY17
9MFY15
9MFY16
9MFY17
Gross Revenues (Rs cr) Sales Volume (mn packets) Gross Revenues (Rs cr) Sales Volume ('000 tons) Gross Revenues (Rs cr) Sales Volume ('000 tons)
Products
Market
Network
Ramp up of newly launched
Industry products
Trends Over the next 3-5 years,
Reinforce cotton leadership in introduce new products in
Andhra Pradesh, Telangana and cotton, maize, pearl millet and
Karnataka paddy
14
Business Overview
The Kaveri Moat : Seeding Profitable Growth
Benchmark R&D:
Diverse Product portfolio Comprehensive germplasm
addressing crop rotation & repository
shift
16
Company Profile
17
Relevant facts
Around
30 + Years 65,000 acres 775 + ~ 100 MT/hour 8 MT/day
Rich experience in Indian
seed industry Seed production across Team strength Total average throughput Ginning capacity
different agro-climatic
centres
7 15,000 + 87 2,900 MT
State-of-the-art seed Point of sale across 15 key Registrations State-of-the-art seed
technology, processing states in India technology, processing
and storage plants and storage plants
18
Progress Down The Years
Seed production
unit started by Initiated R&D Seed conditioning plant Commissioned seed
Shri G. V. programme launched at conditioning plants at
Bhaskar Rao Kandlakoi, Telangana Gundla Pochampally and
Eluru
Achieved significant
Launched
benchmark turnover Listed by Forbes-best under Listed by Forbes-best under premier cotton
of over Rs. 1,100 a billion in Asia Pacific a billion in Asia Pacific Hybrid Jaadoo
crore
Conferred the Bio- Listed by Forbes-best under Launched Kexveg, Commissioned seed
Excellence Asia a billion in Asia Pacific new initiative for conditioning plants
Award by the premium vegetables. at Gundla
Department of IT, BT Listed by Forbes-best Pochampally and
and S&T, Government under a billion in Asia Eluru
of Karnataka Pacific 19
Diversified Seed Portfolio
FIELD CROPS
20
Diversified Seed Portfolio
VEGETABLES
21
Leadership Product Portfolio
Top 5 rank in key crop segments Kaveris cotton seed volume break-up by state
Kaveri is amongst the top
Kaveri Market three seeds companies in
Crop (m packets) FY14 FY15 FY16
Share (%) in FY16 the cotton and sunflower
Cotton 13 AP & Telangana 4.40 5.42 3.42 segments, and top five in
Maharashtra 1.06 1.33 1.12
the maize, paddy and
Maize 9 pearl millet segments
Karnataka 0.66 1.26 0.45
*Rice 6 Gujarat 0.14 0.16 0.25 Combined, these crops
Madhya Pradesh 0.19 0.16 0.16
account for more than
Pearl millet 10 90% of revenues of the
Others 0.25 0.29 0.18 Indian hybrid seed
Sunflower 28 All India 6.70 8.63 5.59 industry
FY15
FY14
FY15
FY16
FY14
FY15
FY16
Sales Volume (m packets) Market Share (%) Sales Volume ('000 tons) Market Share (%) Sales Volume ('000 tons) Market Share (%)
Over 600 acres of dedicated research farms with varying agro-climatic conditions
Strong and highly motivated R&D team about 100 personnel, including more than 20 scientists
o Deployment of frontier technologies Doubled haploid breeding, MAS (Marker Aided Selection), MARS (Marker
Assisted Recurrent Selection), RGA (Rapid Generation Advance), Inbred pool-heterotic bins, MPS (Multi-parent
synthetics ) and MAGIC (Multi-parent Advanced Generation Inter-cross populations
Research and Development facility recognized by Department of Science & Technology, Government of India
Partnering with ICRISAT, Melinda Gates Foundations Harvest Plus program, IRRIs Hybrid Rice Development Consortium,
CIMMYT and USDA program on Heat Tolerant Maize for Asia (HTMA) and DBTs Biotechnology Industry Research
Assistance Program (BIRAP)
Collaboration with NARS (National Agricultural Research System) Institutes and All India coordinated crop improvement
programs of ICAR
Seed is most critical to output for a farmer: Performance ensures premium, repurchase
23
Distribution Presence
Punjab
Haryana
Bihar
Jharkhand
West
Gujarat Madhya Pradesh Bengal
Molangoor Gatla
Narsingpur Odisha
Maharashtra
Gowraram Pamulaparthy
Telangana
(2 plants) Eluru
Gundla
Pochampally
Bellary
Secunderabad Karnataka
Tamil Nadu
Large production area across India with a loyal producer farmer network
o ~ 100,000 production growers across 12 different agro-climatic zones
Strong Brand Equity in o ~ 65,000 acres under seed production
farming community High credibility with the farmers
Focused programmes to spread awareness amongst farming community on new products in
market
7 Company owned plants across key locations in India with a combined processing capacity of ~
130 tonnes per hour
Amongst The Largest Modern equipment for pre-cleaning, grading, cob drying, storage, packing
Processing Capacities Maize cob drying facility with a capacity of 2,900 tonnes per cycle
Green houses for screening, uniform blast nursery for disease/pest screening
Cotton delinting facility
26
High Entry Barriers: Brand Equity Paramount
27
Investor Contacts
28
Thank you