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Kaveri Seeds Q1 Review - Expansion In Gross Margin Drives Earnings: Motilal Oswal

Kaveri Seeds Q1 Review - Expansion In Gross Margin Drives Earnings: Motilal Oswal

<div class="paragraphs"><p>Paddy seeds. (Source: freepik)</p></div>
Paddy seeds. (Source: freepik)

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Motilal Oswal Report

Kaveri Seed Company Ltd. clocked a better operating performance in Q1 FY23, led by gross margin expansion of 420 basis points YoY, as the company was able to maintain the cost of production similar to Q1 FY22 levels.

All seed categories registered a volume growth, with cotton/hybrid rice/maize/selection rice growing by 8%/6%/24%/15%.

Realisation took a hit across segments due to higher discounts offered in Q1 FY23.

We largely retain our FY23 earnings estimate while we cut FY24 earnings estimate by 8% due to lower cotton seed sales volumes.

Click on the attachment to read the full report:

Motilal Oswal Kaveri Seed Q1FY23 Result Update.pdf

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