Kaveri Seed Q2 Review - Lower Maize Seed Volumes Drags Performance: Motilal Oswal
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Motilal Oswal Report
Kaveri Seed Company Ltd.’s reported a weak operating performance in Q2 FY22, despite consolidated revenue rose 10% YoY to Rs 1,476 million (estimate: Rs 1,524 million) in Q2 FY22.
Ebitda declined by 62% YoY to Rs 64 million. Ebitda margin contracted by 810 basis points YoY to 4.3%. Gross margin stood at 38.1%.
As a percentage of sales, employee cost stood at 15.4%, while other expenses stood at 18.3%. Adjusted profit after tax stood at Rs 128 million, down 45.3% YoY.
Cotton seed volumes fell 27% YoY to 5.2 million packets in H1 FY22, leading to a 25% decline in revenue to Rs 3,284 million.
Kaveri Seed gained cotton seed market share in Gujarat and Haryana, while it lost share in Andhra Pradesh, Telangana, Maharashtra, and Karnataka.
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