Kaveri Seeds reports increase of 19.74% in FY 2021 net profit

Kaveri Seeds reported an increase of 19.74% in net profit for FY21 at Rs. 311.20 crore. Operational EBITDA margin in FY21 at 28.76% up by 104 basis points compared to FY20. Net sales were higher by 11.39% for the year under review, while the total cash on books of Rs. 533 crore as on 31 March, 2021, reported the company through a news release.

The Board of Directors of

Limited approved the financial results for the quarter and year ended 31st March 2021 at its meeting held in Secunderabad on Saturday, 29th May 2021.

The company has reported more than one lakh acres under seed production. GV Bhaskar Rao, chairman, Kaveri Seeds, said “We are encouraged by our performance in what has been a very challenging year. We have leveraged our strengths in R&D to introduce new variants across crops done well to expand our share in the non-cotton segment. A significant benchmark was achieved in our becoming the first seed producer in the world with more than one lakh acres under seed production. With cost rationalization and automation also being key focus areas, our operating margins too have improved. We look forward to enhancing value for all our stakeholders in the year ahead.

“Non cotton business has grown significantly; up by 26.09 % driven by volume growth in new hybrids and also price appreciation in key products. Maize volume has increased by 13.51% and revenue by 17.74%. The contribution of new products is stable. Hybrid rice volumes increased by 48.26% in FY21. Introduction of new hybrid 7299, 471 & 473 helped towards strong growth. Contribution of new hybrids went up from 51.05% to 68.17%.

Selection rice volumes grew by 47.11% in FY21. Consistent performance across geographies., new products scale up on the back of growth in Chintu , 828 , Sampurna KV99,” the company release said.

The company reported FY 21 cotton seed sales volumes lower by less than 2%. “The company gained cotton seed market share in Gujarat and Haryana markets, lost sales in AP and Telangana. Contribution of new products went up from 23.80% to 25.22% of volume. New products include KCH 111, Viplav and Money Maker. Kaveri Seeds reported an increase of 56.19% in vegetable sales volumes. Major growth is driven by hot pepper, tomato, gourds and okra. In Hot pepper KHPH 1213, KHPH 1217 & KHPH 1225, in tomato KTH 354 & KTH 355, in Okra KOKH 1107, in gourds Kaveri 88, Kaveri 67 and Kaveri Hero,” informed the company through the release.