Q1 2027 Kaveri Seed Company Ltd Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, you are connected for the Kaveri Seed Company conference call. Please stay connected. The conference will begin shortly. Participants, you are connected for the Kaveri Seed Company conference call.

Speaker #1: Please stay connected. This conference will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to Kaveri Seed Company's Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to Kaveri Seed Company's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference call will be recorded. Joining us today on the call, Mr. Mithun Chand, Executive Director. Before we begin, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For a list of such considerations, please refer to the earnings presentation.

Speaker #1: As a reminder, all participant lines will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation.

Speaker #1: Please note that this conference call will be recorded. Joining us today on the call is Mr. Mithun Chand, Executive Director. Before we begin, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties.

Speaker #1: For a list of such considerations, please refer to the earnings presentation. I would now like to hand over the call to Mr. Mithun Chand. Thank you, and over to you, sir.

Operator: I would now like to hand over the call to Mr. Mithun Chand. Thank you, and over to you, sir.

Speaker #2: Thank you. Good afternoon, and welcome, everyone, to our Q1 FY27 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on our website.

C Mithun Chand: Thank you. Good afternoon and welcome everyone to our Q1 financial year 2027 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on our website. I will touch upon the operational financial operations of the company and then open the floor for Q&A session. Revenue from operation was at INR 815 crore as compared to INR 945 crore. EBITDA was at INR 285 crore as compared to INR 332 crore. Operating margin stayed at about 35%, the same level as last year, slightly above. Net profits were at INR 271.3 crore as compared to INR 316 crore. The cash on books stands at INR 267 crore. Coming to segment-wise revenue breakup, non-cotton revenue was INR 601.57 crore, and cotton revenue was at INR 213.43 crore. Cotton stayed at the level of last year. Major highlights.

Mithun Chand: Thank you. Good afternoon and welcome everyone to our Q1 financial year 2027 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on our website. I will touch upon the operational financial operations of the company and then open the floor for Q&A session. Revenue from operation was at INR 815 crore as compared to INR 945 crore. EBITDA was at INR 285 crore as compared to INR 332 crore. Operating margin stayed at about 35%, the same level as last year, slightly above. Net profits were at INR 271.3 crore as compared to INR 316 crore. The cash on books stands at INR 267 crore. Coming to segment-wise revenue breakup, non-cotton revenue was INR 601.57 crore, and cotton revenue was at INR 213.43 crore. Cotton stayed at the level of last year. Major highlights.

Speaker #2: I would touch upon the operational and financial operations of the company and then open the floor for the Q&A session. Revenue from operations was at ₹815 crore as compared to ₹945 crore.

Speaker #2: EBITDA was at ₹285 crore as compared to ₹332 crore. Operating margin stayed at about 35%, which is the same level as last year, slightly above. Net profit was at ₹271.3 crore as compared to ₹316 crore.

Speaker #2: The cash on books stands at ₹267 crore. Coming to the segment-wise revenue breakup, non-cotton revenue was ₹601.57 crore, and cotton revenue was at ₹213.43 crore.

Speaker #2: Cotton stayed at the level of last year. Major highlights: El Niño brought a weak monsoon, and quarter one had one of the shortest sowing windows of recent seasons.

C Mithun Chand: El Niño got a weak monsoon, and Q1 had one of the shortest sowing windows of recent seasons, with less rain through the quarter. Farmers bought fewer premium and high-value products. Our new cotton products did very well. They now make up 37% of our cotton sales against 22% last year. This is a big jump in single year, and it shows the farmers are choosing our newer hybrids despite challenges from illegal cotton and reduced sowing acreages. Our new single-cross maize hybrids are doing well. They now make up more than 20% of our maize sales. A bigger share of maize now comes from our newer and better products, which gives a stronger base to grow from once maize sowing returns to normal. Maize was slow this quarter because of the deficiency in the rain.

Mithun Chand: El Niño got a weak monsoon, and Q1 had one of the shortest sowing windows of recent seasons, with less rain through the quarter. Farmers bought fewer premium and high-value products. Our new cotton products did very well. They now make up 37% of our cotton sales against 22% last year. This is a big jump in single year, and it shows the farmers are choosing our newer hybrids despite challenges from illegal cotton and reduced sowing acreages. Our new single-cross maize hybrids are doing well. They now make up more than 20% of our maize sales. A bigger share of maize now comes from our newer and better products, which gives a stronger base to grow from once maize sowing returns to normal. Maize was slow this quarter because of the deficiency in the rain.

Speaker #2: With less rain through the quarter, farmers bought fewer premium and high-value products. Our new cotton product did very well. They now make up 47% of our cotton sales, compared to 22% last year.

Speaker #2: This is a big jump in a single year, and it shows the farmers are choosing our newer hybrids, despite challenges from illegal cotton and reduced sowing acreages.

Speaker #2: Our new single-cross male hybrids are doing well. They now make up more than 20% of our male sales. A bigger share of male now comes from our newer and better products, which gives a stronger base to grow from once male sowing returns to normal.

Speaker #2: Maize was slow this quarter because of the deficiency in the rain. Karnataka is our main maize market, and only about a fifth of the land had been sown by mid-June.

C Mithun Chand: Karnataka is our main maize market, and only about a fifth of the land has been sown by mid-June. Rain returned in July, and we expect maize demand to pick up in Q2 financial year 2027. We launched two new hybrids paddy products, KRH7344 and KRH7227. In their very first season, they brought in 62% of our new product sale. This is a strong start for our new rice products. Our export business grew close to four times from INR 1.1 crore to INR 5.79 crore. Demand from overseas markets is clearly building, and this is an area we will keep pushing on. Operational highlights. Operating margins held steady at about 35% through the quarter. In cotton, the company has built a strong base in the northern markets of Haryana, Punjab, and Rajasthan.

Mithun Chand: Karnataka is our main maize market, and only about a fifth of the land has been sown by mid-June. Rain returned in July, and we expect maize demand to pick up in Q2 financial year 2027. We launched two new hybrids paddy products, KRH7344 and KRH7227. In their very first season, they brought in 62% of our new product sale. This is a strong start for our new rice products. Our export business grew close to four times from INR 1.1 crore to INR 5.79 crore. Demand from overseas markets is clearly building, and this is an area we will keep pushing on. Operational highlights. Operating margins held steady at about 35% through the quarter. In cotton, the company has built a strong base in the northern markets of Haryana, Punjab, and Rajasthan.

Speaker #2: Rain returned in July, and we expect maize demand to pick up in Q2 of financial year '27. We launched two new hybrid paddy products.

Speaker #2: KRH 7344 and KRH 7227, in their very first season, brought in 62% of our new product sales. This is a strong start for our new rice products.

Speaker #2: Our export business grew close to four times, from ₹1.1 crore to ₹5.79 crores. Demand from overseas markets is clearly building, and this is an area we will keep pushing on.

Speaker #2: Operational highlights: operating margin stayed steady at about 35% through the quarter. In cotton, the company has built a strong base in the northern markets of Haryana, Punjab, and Rajasthan.

Speaker #2: Hybrid rice stayed our largest non-cotton segment at ₹247.07 crore, in a quarter when rice sowing area in the country was lower. Selection rice revenue grew marginally to ₹159.07 crore.

C Mithun Chand: Hybrid rice stayed our largest non-cotton segment at INR 247.07 crore in a quarter which the rice sowing area in the country was lower. Selection rice revenue grew marginally to INR 159.07 crore, holding up despite poor rain in the rice sowing areas. New bajra hybrids now make up 65% of the bajra volumes, up from 61%, with volumes sustained through the season. Vegetable seeds revenue was at INR 15.08 crore, with few new varieties going into the coming season. If rainfall improves during Q2 financially, we expect some lower demand. The growth story stays intact. We are working on new variants across all seed segments, and we will keep raising the share in maize, vegetables, rice, and cotton. I would now open the floor for question and answer session. Thank you.

Mithun Chand: Hybrid rice stayed our largest non-cotton segment at INR 247.07 crore in a quarter which the rice sowing area in the country was lower. Selection rice revenue grew marginally to INR 159.07 crore, holding up despite poor rain in the rice sowing areas. New bajra hybrids now make up 65% of the bajra volumes, up from 61%, with volumes sustained through the season. Vegetable seeds revenue was at INR 15.08 crore, with few new varieties going into the coming season. If rainfall improves during Q2 financially, we expect some lower demand. The growth story stays intact. We are working on new variants across all seed segments, and we will keep raising the share in maize, vegetables, rice, and cotton. I would now open the floor for question and answer session. Thank you.

Speaker #2: Holding up despite poor rain in the rice sowing areas. New Bajra hybrids now make up 65% of the Bajra volumes, up from 61%, with volumes sustained through the season.

Speaker #2: Vegetable seed revenue was at ₹15.08 crore, with a few new varieties going into the coming season. If rainfall improves during Q2 of the financial year, we expect some spillover demand.

Speaker #2: The growth story stays intact. We are working on new variants across all seed segments, and we will keep raising their share in maize, vegetables, rice, and cotton.

Speaker #2: I would now open the floor for the question-and-answer session. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and then one on the attached phone.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register, you may press star and one. Your first question comes from the line of Rushabh Shah with BugleRock PMS. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register, you may press star and one. Your first question comes from the line of Rushab Shah with Bugle Rock EMS.

Speaker #1: Please go ahead.

Speaker #3: Yeah, hi sir. Thanks for the opportunity. So, sir, if I see your numbers in the last 10–11 years...

Rushabh Shah: Yeah. Hi, sir. Thanks for the opportunity. Sir, if I see your numbers in the last 10, 11 years-

Speaker #2: Sorry, sorry. Can you be a bit louder?

C Mithun Chand: Sorry, can you be a bit louder?

Mithun Chand: Sorry, can you be a bit louder?

Speaker #3: Yeah. So if I look at your financials over the last 10 or 11 years, we reached a profit of around ₹300 crore in 2015. After that, we were building our non-cotton business—our vegetable business—which we have now grown to a significant size.

Rushabh Shah: Yeah. If I see your financials in the last 10, 11 years, we had reached a profit of around 300 crores in 2015. After that, we were building a non-cotton business, a vegetable business, which we have grown to a significant size, but still we are not able to cross that peak profit in the last years. Is it because we couldn't get any hit hybrids like Money Maker or ATM? What kind of challenges we are facing, and what do you think we can achieve in the next, let's say, three to five years?

Speaker #3: But still, we are not able to cross that peak profit in the last years. Is it because we couldn't get any hit hybrids like Money Maker or ATM?

Speaker #3: I mean, what kind of challenges are we facing, and what do you think we can achieve in the next, let's say, three to five years?

Speaker #2: Rightly observed. If you see from 2014-15, the profit remained in and around ₹300 crores in most of the years. And, but if you see the product mix…

C Mithun Chand: Rightly observed. If you see from 2014, 2015, the profit remained in and around the 300 crores in most of the years. Back, if you see the product mix, wherein the cotton was contributing around 80% in 2014, 2015, and the margins were pretty high there. Coming back to this present season, if you see, the mix has changed, wherein cotton only contributes close to 20% and 80% is non-cotton segment. Even cotton margins shrink to much lower than what we used to have, even though we were able to maintain those margins now at a 35% EBITDA for the first quarter. Leaving apart this year, if you see in the last years, we were growing in non-cotton segments, and we were declining cotton.

Mithun Chand: Rightly observed. If you see from 2014, 2015, the profit remained in and around the 300 crores in most of the years. Back, if you see the product mix, wherein the cotton was contributing around 80% in 2014, 2015, and the margins were pretty high there. Coming back to this present season, if you see, the mix has changed, wherein cotton only contributes close to 20% and 80% is non-cotton segment. Even cotton margins shrink to much lower than what we used to have, even though we were able to maintain those margins now at a 35% EBITDA for the first quarter. Leaving apart this year, if you see in the last years, we were growing in non-cotton segments, and we were declining cotton.

Speaker #2: Wherein cotton was contributing around 90% in 2014-15, and the margins were pretty high there. Coming back to this present season, if you see, the mix has changed, wherein cotton only contributes close to 20% and 80% is in the non-cotton segment.

Speaker #2: And even cotton margins shrank to much lower than what we used to have, even though we were able to maintain those margins now at a 35% EBITDA for the first quarter.

Speaker #2: And leaving apart this year, if you see in the last years, we were growing in the non-cotton segment and we were declining in cotton. But by seeing the current season, which is a very challenging season for us—this is the first time we are seeing this type of season, where across India we have seen a monsoon deficit till June 15th.

C Mithun Chand: By seeing the current season, which is a very challenging season for us, this is the first time where we are seeing this type of season where across India, we are seeing monsoon deficit till 15 June, which has disrupted the cropping patterns and the farmer choices. That's making an impact. This is one of the year where we should not take into consideration. Coming back to if you see the portfolio levels, P2, the other levels, even in these tough conditions, we were able to do well. With the products what we have and with the research what we have spent in the last years, and the hybrids which were developed, the research are doing very well, and they're very encouraging. This is just one off an year, and this should not be a benchmark for the performance.

Mithun Chand: By seeing the current season, which is a very challenging season for us, this is the first time where we are seeing this type of season where across India, we are seeing monsoon deficit till 15 June, which has disrupted the cropping patterns and the farmer choices. That's making an impact. This is one of the year where we should not take into consideration. Coming back to if you see the portfolio levels, P2, the other levels, even in these tough conditions, we were able to do well. With the products what we have and with the research what we have spent in the last years, and the hybrids which were developed, the research are doing very well, and they're very encouraging. This is just one off an year, and this should not be a benchmark for the performance.

Speaker #2: Which has disrupted the cropping patterns and the farmer choices. So that's making an impact. This is one of the years where we should not take it into consideration.

Speaker #2: But coming back to—if you see the portfolio levels, if you look at the other levels, even in this tough condition, we were able to do well. And with the products we have and the research we have done—what we have spent in the last years—and the hybrids which were developed in the research are doing very well, and they are very encouraging.

Speaker #2: We're just one year out, and we should not be a benchmark for the performance.

Speaker #3: Okay. My second question is, we have entered into the export market for quite some time, and we have grown in that area also.

Rushabh Shah: Okay. The second question is, we are entering into the export market for quite some time, and we have grown in that area also. Are we facing any challenges in those regions? Because in one of the calls, I remember you have said that gaining farmers' trust, even in India, we are an Indian company, which took so long. Are we facing such kind of challenges in the export market? Second part of the question is, in exports, maize and rice are two big crops, and we had talked about Philippines, Vietnam, or Thailand to grow our export business. We had sent some samples for trial. We got good results, and it could be around a 100 crore revenue in the few years. What's happening on that front? If you could just let us know.

Speaker #3: So, I mean, are we facing any challenges in those regions? Because in one of the calls, I remember you had said that gaining farmers' trust—even in India, we are an Indian company—took so long.

Speaker #3: So, are we facing such kinds of challenges in the export market? And the second part of the question is, in exports, maize and rice are two big crops.

Speaker #3: And we have talked about the Philippines, Vietnam, or Thailand to grow our export business. We had sent some samples for trial, and we got good results.

Speaker #3: And it could be like around 100 crore revenue in a few years. So, what is happening on that front, if you could just let us know?

Speaker #2: Now we are growing in vegetables. We are growing in the export market, and the conditions here and there remain almost the same. I mean to say that in terms of farmers' choices, they will see the performance and then only they will adapt it.

C Mithun Chand: We are growing in vegetables. We are growing in export market, and the conditions here and there remains almost same. I mean to say that in terms of farmers' choices, they will see the performance, and then only they will adapt it. In few countries, we need to do trialing as well. So that trialing we have completed in the Philippines, Vietnam, and Indonesia there. So now we are sending material there. So we are getting good sale there, and still we stick to that growth in export market. Reaching INR 100 crores in vegetables shouldn't be a difficult time in the coming time.

Mithun Chand: We are growing in vegetables. We are growing in export market, and the conditions here and there remains almost same. I mean to say that in terms of farmers' choices, they will see the performance, and then only they will adapt it. In few countries, we need to do trialing as well. So that trialing we have completed in the Philippines, Vietnam, and Indonesia there. So now we are sending material there. So we are getting good sale there, and still we stick to that growth in export market. Reaching INR 100 crores in vegetables shouldn't be a difficult time in the coming time.

Speaker #2: In a few countries, we need to do trialing as well. So that trialing we have completed in the Philippines, Vietnam, and Indonesia there. So now we are sending material there.

Speaker #2: So, we are getting good sales there, and we are still sticking to that growth in the export market. Reaching 100 crores in vegetables shouldn't be a difficult target.

Speaker #2: In the coming time.

Speaker #3: Okay. Okay. And sir, we have done a commendable job in the past years to build our non-cotton portion of the business. My question is on the cotton business.

Rushabh Shah: Okay. And sir, we have done a commendable job in the past years to build a non-cotton portion of the business. My question on the cotton business, as we know that this business does not have significantly lower margins than the non-cotton business. Have we lost focus, or let's say, are we focusing less on this? We are giving less importance to this business. Because there are many factors, like illegal seeds, capping of prices from the government, and we haven't come out with such new hybrids in the last many years in the cotton business. Just to add on the part, in the last two years, we have seen we have huge inventory, like around INR 1,200 crores of inventory we have. On that front, could you please let us know something?

Speaker #3: As we know that this business does not have significantly lower margins than the non-cotton business. And have we lost focus or let's say are we focusing less on this we are giving less importance to this business and because there are many factors like illegal seeds, capping of prices from the government and we haven't come out with such new hybrids in the last many years and the cotton business.

Speaker #3: And just to add on that part, in the last two years, we have seen that we have a huge inventory—around ₹1,200 crores of inventory.

Speaker #3: So, on that front, could you please let us know something?

Speaker #2: Well, coming back to the cotton question first—yes, in cotton, we have lost market share in the last seven or eight years. And just to correct you, we have developed many hybrids in the past three to four years.

C Mithun Chand: Coming back to the cotton question first. Yes, cotton, we have lost market share the last seven, eight years. I'll just correct you, we have developed many hybrids in the past three, four years. If you see the growth in Northern India, if you see the overall sale as a flattish one, but we have grown in Northern India. We have almost like doubled in Northern India in terms of cotton with a small base. But those are all new hybrids, and we are doing very well. When you come down to Gujarat and Maharashtra, the rainfalls were very low, scattered rainfall initially, and then the illegal Bt. These all has impacted to some extent. As I said that this is one of the year where we should not take as a benchmark.

Mithun Chand: Coming back to the cotton question first. Yes, cotton, we have lost market share the last seven, eight years. I'll just correct you, we have developed many hybrids in the past three, four years. If you see the growth in Northern India, if you see the overall sale as a flattish one, but we have grown in Northern India. We have almost like doubled in Northern India in terms of cotton with a small base. But those are all new hybrids, and we are doing very well. When you come down to Gujarat and Maharashtra, the rainfalls were very low, scattered rainfall initially, and then the illegal Bt. These all has impacted to some extent. As I said that this is one of the year where we should not take as a benchmark.

Speaker #2: And if you see the growth in Northern India, we have grown even though, if you see, the overall sale is a flat-ish one. But we have grown in Northern India.

Speaker #2: In terms of, we have almost doubled in Northern India in terms of cotton, though with a small base. But those are all new hybrids, and we are doing very well.

Speaker #2: When you come back, when you come down to Gujarat and Maharashtra, the rainfalls were very low. Scattered rainfall initially, and then the illegal BT.

Speaker #2: These all have impacted to some extent. As I said, this is one of the years where we should not see—where we should not take—as a benchmark.

Speaker #2: We are very content with the new cotton hybrids. And even in sales, you have seen the contribution of the new cotton hybrids.

C Mithun Chand: We are very confident with the new cotton hybrids, and even in the sale, you have seen the contribution of the cotton hybrids, newer cotton hybrids. We are fairly confident that we'll go back to our market share, what we used to have earlier, and we are very confident about cotton. Even though the margins are lower, but the market size is very big, and we can't ignore cotton as such. Cotton is a very big market, and we are very strong in those markets. So we are working, and we'll be working in cotton segment also. Coming back to inventory, yes, compared to last year, we have roughly INR 200 crores of more inventory when compared to last year. That is because we anticipated a good season and good growth this year.

Mithun Chand: We are very confident with the new cotton hybrids, and even in the sale, you have seen the contribution of the cotton hybrids, newer cotton hybrids. We are fairly confident that we'll go back to our market share, what we used to have earlier, and we are very confident about cotton. Even though the margins are lower, but the market size is very big, and we can't ignore cotton as such. Cotton is a very big market, and we are very strong in those markets. So we are working, and we'll be working in cotton segment also. Coming back to inventory, yes, compared to last year, we have roughly INR 200 crores of more inventory when compared to last year. That is because we anticipated a good season and good growth this year.

Speaker #2: We are pretty confident that we'll go back to a market share—what we used to have earlier—and we are very confident about cotton.

Speaker #2: Even though the margins are lower, the market size is very big, and we can't ignore cotton as such. Cotton is a very big market.

Speaker #2: And we are very strong in those markets. So we are working, and will continue to work, in the cotton segment as well. Coming back to inventory, yes, compared to last year, we have roughly ₹200 crore more in inventory than we did last year.

Speaker #2: That is because we anticipated a good season and good growth this year. However, due to the effect of the delayed rains—scattered rains here and there—that has impacted the sale.

C Mithun Chand: Because of the El Niño effect and the delayed rains, scattered rains here and then, that has impacted the sale. But anyhow, that is a part and parcel of the business. We will manage the inventory, and inventory is pretty much stored properly. We will be reducing our productions next year. We will not take up the production what we have taken up this year. That is a continuous process. We are monitoring it. No worry as of now to maintain the inventory. It is for the holding time, what we have.

Mithun Chand: Because of the El Niño effect and the delayed rains, scattered rains here and then, that has impacted the sale. But anyhow, that is a part and parcel of the business. We will manage the inventory, and inventory is pretty much stored properly. We will be reducing our productions next year. We will not take up the production what we have taken up this year. That is a continuous process. We are monitoring it. No worry as of now to maintain the inventory. It is for the holding time, what we have.

Speaker #2: But anyhow, that's part and parcel of the business. We'll manage the inventory, and inventory is pretty much still proper. And we will be reducing our production next year.

Speaker #2: So, we'll not take up the production that we have taken up this year. That's a continuous process. So, we are monitoring it. No worry as of now to maintain the inventory.

Speaker #2: Except for the holding time, what do we have?

Speaker #3: And sir, just to follow up on the market share part—loss of market share in cotton—we had lost market share in Andhra Pradesh and Telangana.

Rushabh Shah: And sir, just a follow-up on the market share part, a loss of market share in cotton. I think we had lost market share in Andhra Pradesh and Telangana. Rasi is a market leader all over India also. Just wanted to know what is helping them to gain more market share. Is it better farmer connectivity, or are they of a better brand? Just wanted to know.

Speaker #3: So, Rasi is a market leader all over India also. Just wanted to know, I mean, what is helping them to gain more market share?

Speaker #3: Is it better pharma connectivity, or are they of a better brand? I just wanted to know.

Speaker #2: So basically, if you see in the last four or five years, I don't think they have increased the market share. At the most, they have maintained or declined in terms of the market shares.

C Mithun Chand: So basically, if you see in the last four, five years, I do not think they have increased their market share. At the most, they have maintained or declined in terms of the market shares. The cotton market also slightly declined in the last three, four years. The illegal cotton has also gone up, so smaller players also coming up. In terms based on the hybrid performance, the hybrids are doing well, and they are accepted, they have grown. But these are all old hybrids there. We have not seen any new hybrids that have taken market share in the last three, four years.

Mithun Chand: So basically, if you see in the last four, five years, I do not think they have increased their market share. At the most, they have maintained or declined in terms of the market shares. The cotton market also slightly declined in the last three, four years. The illegal cotton has also gone up, so smaller players also coming up. In terms based on the hybrid performance, the hybrids are doing well, and they are accepted, they have grown. But these are all old hybrids there. We have not seen any new hybrids that have taken market share in the last three, four years.

Speaker #2: And the cotton market has also slightly declined in the last three to four years. The illegal cotton has also gone up, and smaller players are also coming up.

Speaker #2: So, in terms of hybrid performance, the hybrids are doing well and they are accepted. They are grown, but these are all old hybrids there.

Speaker #2: We have not seen any new hybrids that take any market share in the last three to four years.

Speaker #3: Okay, thank you. I think that is it.

Rushabh Shah: Okay. Thank you. I think that is it.

Speaker #1: Thank you. Your next question comes from the line of Disha Garg with Sanko Mutual Funds. Please go ahead.

Operator: Thank you. The next question comes from the line of Disha Garg with Sanco Mutual Funds. Please go ahead.

Speaker #4: Yeah. Hi sir. Good evening.

Disha Garg: Yeah. Hi, sir. Good evening.

Speaker #3: Yeah.

C Mithun Chand: Yeah.

Mithun Chand: Yeah.

Disha Garg: Sir, as the season was not that good, have we also got hit on our margin, which means for a particular crop which is compensated by other crops. Is there any-

Speaker #4: Sir, as the season was not that good, have we also been hit on our margin for a particular crop, or is it compensated by other crops?

Speaker #4: So is there any crop where we is there any crop where we got a low margin versus last year?

C Mithun Chand: Sorry?

Mithun Chand: Sorry?

Disha Garg: crop where we-

Disha Garg: Sorry?

Disha Garg: Is there any crop where we got a low margin versus last year?

Speaker #2: No. If you see, the margins in fact expanded even though the sales declined. The EBITDA margins have slightly expanded. If you see the other expenses, like salaries and other expenses, they were up compared to last year in terms of percentages.

C Mithun Chand: No. If you see, the margins, in fact, expanded. Even though the sale declined, the EBITDA margins have slightly expanded. If you see the other expenses like the salaries and other expenses were up compared to last year in terms of the percentages. But in terms of the gross margins, it is up by 2% to 3%. So in anticipation of a good season, we deployed many people across, and we couldn't sell as that, and that has slightly impacted margin. But in fact, we would have done more margin than last year if all the season was good.

Mithun Chand: No. If you see, the margins, in fact, expanded. Even though the sale declined, the EBITDA margins have slightly expanded. If you see the other expenses like the salaries and other expenses were up compared to last year in terms of the percentages. But in terms of the gross margins, it is up by 2% to 3%. So in anticipation of a good season, we deployed many people across, and we couldn't sell as that, and that has slightly impacted margin. But in fact, we would have done more margin than last year if all the season was good.

Speaker #2: But in terms of the gross margins, it is up by 2 to 3 percent. So, in anticipation of a good season, we deployed many people across, and since we couldn't sell as much, that has slightly impacted our margin. But in fact, we would have achieved more margin than last year if the season was good.

Speaker #4: Okay. Okay. Thank you.

Disha Garg: Okay. Thank you.

Speaker #1: Thank you. Your next question comes from the line of Himanshu Upadhyay with State Ford. Please go ahead.

Operator: Thank you. The next question comes from the line of Himanshu Upadhyay with SteadFort. Please go ahead.

Speaker #3: Yeah, hi. I had a question on subsidiaries. Okay, in one of the recent calls, we stated that our subsidiary also sells seeds, and if we have multiple hybrids, launching all hybrids through Kaveri is not viable.

Himanshu Upadhyay: Yeah. Hi. I had a question on subsidiaries. In one of the recent calls, we stated that our subsidiary also sells seeds, and if we have multiple hybrids, launching all hybrids through Kaveri is not viable. Out of, let's say, four or five hybrids are there, one or two can go to subsidiary. I could not understand why all cannot be sold through Kaveri, and why not choose best two, three hybrids and put our entire efforts with focus behind those, rather than diversifying our energy across multiple products and multiple places through subsidiaries or all that. Some input on that will be helpful.

Speaker #3: So out of, let's say, four or five hybrids, one or two can go to subsidiary. But I could not understand why all cannot be sold through Kaveri, and why not choose the best two or three hybrids and put our entire efforts and focus behind those, rather than diversifying our energy across multiple products and multiple places.

Speaker #3: Through subsidiaries or all that. So, some input on that would be helpful.

Speaker #2: That all depends on the company's strategy, how they do it. For us, if you take Kaveri as such, Kaveri focuses only on those hybrids.

C Mithun Chand: That all depends on the company strategy, how they do it. For us, if you take Kaveri as such, Kaveri focus only on those hybrids. Even though subsidiaries are there, we are competitors in the market. They operate as different companies. The team is different. All the efforts are different. Only the research is Kaveri, but all are independent companies and independent subsidiaries. Those are all competitors in the market. We are putting our full effort across all hybrids and whatever sale is booked in the subsidiaries are also our independent sales.

Mithun Chand: That all depends on the company strategy, how they do it. For us, if you take Kaveri as such, Kaveri focus only on those hybrids. Even though subsidiaries are there, we are competitors in the market. They operate as different companies. The team is different. All the efforts are different. Only the research is Kaveri, but all are independent companies and independent subsidiaries. Those are all competitors in the market. We are putting our full effort across all hybrids and whatever sale is booked in the subsidiaries are also our independent sales.

Speaker #2: Even though subsidiaries are there, we are competitors in the market. They operate as a different company. The team is different, all the efforts are different.

Speaker #2: So only the research is Kaveri, but all are independent companies and independent subsidiaries. So those are all competitors in the market. We are putting our full effort across all hybrids, and whatever sales are booked in the subsidiaries are also all independent sales.

Speaker #3: I could not understand the benefit of that strategy, because when we look at companies in FMCG or even agrochemicals, we see that companies often have multiple products for the same issues, and multiple brands as well, which all get sold through the same company.

Himanshu Upadhyay: I could not understand the benefit of that strategy because many companies, let's say in FMCG or any other agrochemicals also when we see, companies have multiple products for the same issues and multiple brands also which get sold through the same company. Why is this strategy more helpful of selling through subsidiary and competing with our own subsidiaries? Some thoughts on that will be helpful. That is what I am trying to understand.

Speaker #3: Why is this strategy more helpful than simply selling through a subsidiary and competing with our own subsidiaries? Some thoughts on that would be helpful.

Speaker #3: That is what I am trying to understand.

Speaker #2: The business of FMCGs and seed is an altogether different business because seed farmers only pick by seeing the performance of the hybrid. And India has got many climatic conditions.

C Mithun Chand: The business of FMCGs and seeds is altogether a different business. Seed farmer only pick up by seeing the performance of the hybrid. India has got many climatic conditions. Each hybrid performs differently in each segment. There are very few hybrids which are successful across all zones. When we have me too hybrids, we need to discard one hybrid and market only one hybrid. That discarded hybrid will go to the subsidiaries, which operates independently and we get market share. For example, if you take this year also, the hybrids, what we sold in, for example, if you take cotton hybrid, we have sold around 10 to 12 lakh packets in subsidiaries.

Mithun Chand: The business of FMCGs and seeds is altogether a different business. Seed farmer only pick up by seeing the performance of the hybrid. India has got many climatic conditions. Each hybrid performs differently in each segment. There are very few hybrids which are successful across all zones. When we have me too hybrids, we need to discard one hybrid and market only one hybrid. That discarded hybrid will go to the subsidiaries, which operates independently and we get market share. For example, if you take this year also, the hybrids, what we sold in, for example, if you take cotton hybrid, we have sold around 10 to 12 lakh packets in subsidiaries.

Speaker #2: Seed hybrids perform differently in each segment. There are very few hybrids which are successful across all zones. So, when we have 'me too' hybrids, we need to discard one hybrid and market only one.

Speaker #2: So, the discarded hybrid will go to the subsidiaries which operate independently, and we get market share. For example, if you take this year also, the hybrids we sold—in, for example, if you take cotton hybrid—we have sold around 10 to 12 lakh packets in subsidiaries.

Speaker #2: So that's an other added advantage for the Kaveri seed company. Wherein the cost and everything gets the research cost and the production cost will be beneficial for the Kaveri seed as we may not be able to market all those hybrids.

C Mithun Chand: So that's an added advantage for the Kaveri Seed Company, wherein the cost and everything gets the research cost and the production cost will be beneficial for the Kaveri Seed as we may not be able to market all those hybrids. It's all a me too hybrids, basically.

Mithun Chand: So that's an added advantage for the Kaveri Seed Company, wherein the cost and everything gets the research cost and the production cost will be beneficial for the Kaveri Seed as we may not be able to market all those hybrids. It's all a me too hybrids, basically.

Speaker #2: It's all a 'me too' hybrids, basically. And some hybrids perform differently in different segments, so they take advantage of that. If you want to do it in one company, we need to discard those types of niche market hybrids, which we don't want to do.

Himanshu Upadhyay: And one more thing-

C Mithun Chand: Some hybrids perform differently in different segments, so they take advantage of that. If you want to do in one company, we need to discard those type of niche market hybrids, which we don't want to do. Again, that's what I was saying. Again, that depends on the strategy of the company.

Mithun Chand: Some hybrids perform differently in different segments, so they take advantage of that. If you want to do in one company, we need to discard those type of niche market hybrids, which we don't want to do. Again, that's what I was saying. Again, that depends on the strategy of the company.

Speaker #2: Again, that's what I was saying. That depends on the strategy of the company.

Speaker #3: Okay, okay. And one more thing.

Himanshu Upadhyay: Okay. And one more thing-

Speaker #2: And one more thing, I'll just add on to that. Even the Indian farmer usually tries different products; he will not go for just one goal.

C Mithun Chand: And one more thing I will just add on to that. Even an Indian farmer usually tries different products. He will not go for one go. For example, if you have 10 acres of land, even though he is very much, I want to say, used to one hybrid, even in that way, he tries other three or four hybrids of different companies or out of the same company.

Mithun Chand: And one more thing I will just add on to that. Even an Indian farmer usually tries different products. He will not go for one go. For example, if you have 10 acres of land, even though he is very much, I want to say, used to one hybrid, even in that way, he tries other three or four hybrids of different companies or out of the same company.

Speaker #2: For example, if you have 10 acres of land, even though it's very much, I want to say, used to one hybrid, even in that way, it tries other three or four hybrids.

Speaker #2: Of different companies, or other same company.

Speaker #3: And when we say the new cotton products or any, let's say, new hybrids, so the new product would mean launched within three or five years, or what is the duration?

Himanshu Upadhyay: And when we see the new cotton products or any, let us say, bajra new hybrids. So the new product would mean launched within three year, five year, or what is the duration?

Speaker #2: Within three years—basically, three years.

C Mithun Chand: Basically three years.

Mithun Chand: Basically three years.

Speaker #3: Okay. Okay. And.

Himanshu Upadhyay: Okay.

Speaker #2: It is not in the last three years.

C Mithun Chand: Launched in last three years.

Mithun Chand: Launched in last three years.

Speaker #3: Okay. So, whatever was launched in the last three years, we call a new product.

Himanshu Upadhyay: Okay. So whatever is launched in three years is we say new product.

Speaker #2: Yeah.

Speaker #3: Okay.

C Mithun Chand: Yeah.

Mithun Chand: Yeah.

Himanshu Upadhyay: Okay.

Speaker #2: Yes.

C Mithun Chand: Yes.

Mithun Chand: Yes.

Speaker #3: Okay. And in cotton, when we have seen the new products growing at a very quick pace, are we getting some rising premium also in those products, or does the price remain subdued only for those products as well? And if they replace the older ones—okay, and I think they would be replacing.

Himanshu Upadhyay: Okay. And in cotton, when we have seen the new products growing at a very quick pace, are we getting some pricing premium also in those products or the price remains subdued only for those products also? If they replace the older ones, okay. I think they would be replacing, that's why their share is continuously increasing even when our revenues in cotton and some more have not increased. How is the pricing and the profitability for these products or the newer products? Some thoughts on that would be helpful.

Speaker #3: That's why their share is continuously increasing even when our revenues in cotton and some others have not increased. But how is the pricing and the profitability for these products, or the newer products?

Speaker #3: Some thoughts on that.

Speaker #2: Cotton the MRP is capped in cotton the MRP is capped. But in terms of the realizations, we are almost like in the top three segments of the cotton seed where we realize higher than many other companies.

C Mithun Chand: In cotton, the MRP is capped, but in terms of the realizations, we are almost like in the top three segments of the cotton seed where we realize higher than many other companies.

Mithun Chand: In cotton, the MRP is capped, but in terms of the realizations, we are almost like in the top three segments of the cotton seed where we realize higher than many other companies.

Speaker #3: Okay. And one more thing. With the later rains coming, do we see any hybrids, or any change in the cropping pattern, which might benefit from shorter duration crops—let's say vegetables, which generally have a three-month type of time frame?

Himanshu Upadhyay: Okay. One more thing. With later rains coming, do we see any hybrids or any change in the cropping pattern which might benefit for a shorter duration crops, let's say, vegetables which generally have a 3-month type of timeframe. Any product or any place where we can-

Speaker #3: So, any product or any place where we can benefit.

C Mithun Chand: Not much. For us, vegetables are a very smaller segment even though that might come this quarter, but it's a very small segment which may not add up much for us. For us, Karnataka is a major state where still we are waiting for the rainfall and now the tanks are getting full now. In that segment in Karnataka, what we believe is that we have not lost sale. It can come again in terms of maize. That is a positive point. What we see is that we can get back Karnataka sale. Other parts we may not get back, but in Karnataka we can get back. The other thing is that now with the excess rains and the heavy rains in the last couple of weeks, most of the tanks are full in most of the parts.

Mithun Chand: Not much. For us, vegetables are a very smaller segment even though that might come this quarter, but it's a very small segment which may not add up much for us. For us, Karnataka is a major state where still we are waiting for the rainfall and now the tanks are getting full now. In that segment in Karnataka, what we believe is that we have not lost sale. It can come again in terms of maize. That is a positive point. What we see is that we can get back Karnataka sale. Other parts we may not get back, but in Karnataka we can get back. The other thing is that now with the excess rains and the heavy rains in the last couple of weeks, most of the tanks are full in most of the parts.

Speaker #2: Not much. For us, vegetables are a very small segment, even though that might come this quarter. But it is a very, very small segment, which may not add up much for us.

Speaker #2: But for us, Karnataka is the major state where we are still waiting for the rainfall, and now the tanks are getting full.

Speaker #2: So, in that segment, in Karnataka, what we believe is that we have not lost sales—they can come again, in terms of maize. So, that's a positive point. What we see is that we can get back the Karnataka sale.

Speaker #2: Other parts we may not get back, but in Karnataka we can get back. And the other thing is that now, with the excess rains and the heavy rains in the last couple of weeks, most of the tanks are full in most parts.

Speaker #2: They're leaving the southern part, like Karnataka or Andhra, or some parts of Telangana. But in northern India and the mid part, the tanks are full. So in that way, that Rabi might be a bit encouraging this year.

C Mithun Chand: We are leaving the southern part like Karnataka or Andhra or some parts of Telangana. Northern India, mid part, the tanks are full. In that way, that rabi might be a bit encouraging this year. If you see the maize price, in the start of the season, it was only ₹16, ₹17. Now the maize price is also around ₹27, ₹28. Even most of the rabi comes from maize crops. Maize should pick up in the H2.

Mithun Chand: We are leaving the southern part like Karnataka or Andhra or some parts of Telangana. Northern India, mid part, the tanks are full. In that way, that rabi might be a bit encouraging this year. If you see the maize price, in the start of the season, it was only ₹16, ₹17. Now the maize price is also around ₹27, ₹28. Even most of the rabi comes from maize crops. Maize should pick up in the H2.

Speaker #2: And if you see the maize price, at the start of the season, it was only 16–17 rupees. Now the maize price is also around 27–28 rupees.

Speaker #2: So, even most of the Rabi is coming from maize crops, so maize should pick up in the second half.

Speaker #3: Okay. Okay. And let's say the exports last year, how much was to Bangladesh, and what is the outlook overall for the exports, especially to Bangladesh?

Himanshu Upadhyay: Okay. I'd say the exports last year, how much was to Bangladesh and what is the outlook overall for the exports and especially to Bangladesh where you are making special efforts.

Speaker #2: I don't have the exports. I don't have the exact state as of now, but definitely, compared to last year, we'll grow at at least 25%—either compared to last year or as overall exports.

C Mithun Chand: I don't have the exact state as of now, but definitely from last year we'll grow at least 25% compared to last year as overall exports.

Mithun Chand: I don't have the exact state as of now, but definitely from last year we'll grow at least 25% compared to last year as overall exports.

Speaker #3: Okay. I'll join back in Q4 for further queries.

Himanshu Upadhyay: Okay. I'll join back in queue for further queries.

Speaker #2: Okay.

C Mithun Chand: Okay.

Mithun Chand: Okay.

Speaker #1: Thank you. Your next question comes from the line of Dhruv Saraf with Bowhead India Fund. Please go ahead.

Operator: Thank you. Your next question comes from the line of Dhruv Saraf with Bowhead India Fund. Please go ahead.

Dhruv Saraf: In Q1 numbers, if I compare the seed revenues of other large companies such as Bayer, such as Advanta, their maize seed revenues almost grew by 20% plus, while we had a 40% decline. Sir, can you help me pin down why this big difference in performance?

Speaker #2: In Q1 numbers, if I compare the fee revenues of other large companies such as Bayer, such as Advanta, their maize seed revenues almost grew by 20% plus.

Speaker #2: While we had a 40% decline, can you help me pin down why there's such a big difference in performance? Basically, they are very strong in the other parts of India.

C Mithun Chand: Basically, they are very strong in the other parts of India. We are strong in the southern parts of India, especially Karnataka, Andhra, Telangana. So these parts we have received lesser rainfall. That is one of the impacts what we have seen. If you see last year, 25% to 30% of sale came from Karnataka last year in terms of overall kharif sale.

Mithun Chand: Basically, they are very strong in the other parts of India. We are strong in the southern parts of India, especially Karnataka, Andhra, Telangana. So these parts we have received lesser rainfall. That is one of the impacts what we have seen. If you see last year, 25% to 30% of sale came from Karnataka last year in terms of overall kharif sale.

Speaker #2: We are strong in the southern parts of India, especially Karnataka, Andhra, and Telangana. In these parts, we have received lesser rainfall. That's one of the impacts we have seen.

Speaker #2: And if you see last year, 25% to 30% of sales came from Karnataka last year in terms of overall curry sales.

Speaker #3: Okay, right. But even in areas like Madhya Pradesh, where acreage has grown and we are strong, were we not able to perform well in those markets?

Dhruv Saraf: Okay. Right, sir. But even we are strong in areas like Madhya Pradesh as well, where the acre has grown.

Dhruv Saraf: So were we not able to perform well in those markets because those numbers are quite divergent. Ours is -40, them is +20. So I am just trying to understand, apart from Karnataka, is there any other reason?

Speaker #3: Because the numbers are quite divergent—minus 40, then it's plus 20. So I'm just trying to understand, apart from Karnataka, is there any other reason?

Speaker #2: There are mixed views in some pockets. For example, we have grown in Rajasthan. We have grown in other parts of northern India, but not in the states of Madhya Pradesh.

C Mithun Chand: There are mixed views in some pockets. For example, we have grown in Rajasthan. We have grown in other parts of Northern India, but not in the state of Madhya Pradesh, Maharashtra, and Bihar. Especially in Maharashtra and Madhya Pradesh, we are not able to do well. If you see the overall acreages, Madhya Pradesh is the one where we have seen a huge increase in acreages.

Mithun Chand: There are mixed views in some pockets. For example, we have grown in Rajasthan. We have grown in other parts of Northern India, but not in the state of Madhya Pradesh, Maharashtra, and Bihar. Especially in Maharashtra and Madhya Pradesh, we are not able to do well. If you see the overall acreages, Madhya Pradesh is the one where we have seen a huge increase in acreages.

Speaker #2: Maharashtra and Bihar. Especially in Maharashtra and Madhya Pradesh, we are not able to do well. If you see the overall acreages, Madhya Pradesh is the one where we have seen a huge increase in acreages.

Speaker #3: Yeah.

Dhruv Saraf: Yeah.

Speaker #2: That we were not able to capture. That's the only area where we missed out. But whereas, if you take Maharashtra and other parts, it remains the same.

C Mithun Chand: That we were not able to capture. That is the only area where we missed out, but whereas if you take Maharashtra and other parts, it remains the same or came down.

Mithun Chand: That we were not able to capture. That is the only area where we missed out, but whereas if you take Maharashtra and other parts, it remains the same or came down.

Speaker #2: It remains the same or came down. The major increase was in Rajasthan and Madhya Pradesh. In Rajasthan, we were able to capture, but in Madhya Pradesh, we were not able to do that.

Dhruv Saraf: Okay. All right.

C Mithun Chand: The major increase was in Rajasthan and Madhya Pradesh. In Rajasthan we were able to capture, but in Madhya Pradesh we were not able to do that.

Mithun Chand: The major increase was in Rajasthan and Madhya Pradesh. In Rajasthan we were able to capture, but in Madhya Pradesh we were not able to do that.

Speaker #3: So, sorry, is it a problem that we don't have a product, let's say, for those geographies, or?

Dhruv Saraf: Sir, is it a problem that we do not have a product, let us say, for those geographies or?

Speaker #2: Yes, yes, yes. That's the main reason.

C Mithun Chand: Yes, that's the main reason.

Mithun Chand: Yes, that's the main reason.

Speaker #3: Okay, okay, understood. So secondly, you spoke about the fact that rainfall has picked up in Karnataka, and maize acreage, which was down 15% at the start of July year-on-year.

Dhruv Saraf: Okay, understood, sir. Sir, secondly, you spoke about the fact that rainfall has picked up in Karnataka and maize acreage, which was down 15% at the start of July year-on-year. If you look at the cropping now, maize acreage is down only 4% year-on-year as of the latest government data. Do you expect to cover up a large part of your sales in Q2 and in Q2's paddy kharif?

Speaker #3: If you look at the cropping now, maize acreage is down only 4% year-on-year, as per the latest government data. So, do you expect to cover up a large part of your sales in Q2, and specifically in Q2?

Speaker #2: Basically, if you see Karnataka now, even now in some parts of Karnataka where the maize goes in, still the rains are not there.

C Mithun Chand: Basically, if you see Karnataka now, even now in some parts of Karnataka where the maize goes in, still the rains are not there. But the dams at Tungabhadra are getting full now. In the last couple of days, the season, the maize seed is going up.

Mithun Chand: Basically, if you see Karnataka now, even now in some parts of Karnataka where the maize goes in, still the rains are not there. But the dams at Tungabhadra are getting full now. In the last couple of days, the season, the maize seed is going up.

Speaker #2: So, but the dams at Tungabhadra are getting full now. And in the last couple of days, this season, the maize seed is going up.

Speaker #2: So but in Karnataka, usually they have a habit of sowing maize across the years. During entire year. So whatever we have done last year in Karnataka, still we are confident that we'll do.

C Mithun Chand: But in Karnataka usually they have a habit of sowing maize across the years, during the entire year. Whatever we have done last year in Karnataka, still we are confident that we'll do, but it will be in Q2 or 3, and let's just see to see.

Mithun Chand: But in Karnataka usually they have a habit of sowing maize across the years, during the entire year. Whatever we have done last year in Karnataka, still we are confident that we'll do, but it will be in Q2 or 3, and let's just see to see.

Speaker #2: But it will be in Q2 or Q3, and we just need to see.

Speaker #3: Sure. So now, in terms of Q1, you've entered with a 14% sales decline.

Dhruv Saraf: Sure. Sir, now in terms of, you ended Q1 with a 14% sales decline.

Speaker #2: I just want to correct. The sale in Karnataka we might be able to recover, but the sale in other parts for the curries is already lost.

C Mithun Chand: But one thing I will just correct.

Mithun Chand: But one thing I will just correct.

Dhruv Saraf: Yeah, sure.

C Mithun Chand: The sale in Karnataka we might be able to recover, but the sale in other parts for the kharif, that is already lost. Whatever we have done,

Mithun Chand: The sale in Karnataka we might be able to recover, but the sale in other parts for the kharif, that is already lost. Whatever we have done,

Speaker #2: But whatever we are doing in curries in maize, that we might recover in Karnataka.

Dhruv Saraf: Yeah, sure.

C Mithun Chand: in kharif in maize, that we might recover in Karnataka.

Mithun Chand: in kharif in maize, that we might recover in Karnataka.

Speaker #3: Great. So if I then were to look at the full year for this 527, you've ended Q1 with a 14% sales decline. Do you expect to, let's say, close this year at last year's sales level, or will you have that minus 10%, minus 12% decline still by the end of the year?

Dhruv Saraf: Great. If I then want to look at the full year for FY27, you have ended Q1 with a 14% sales decline. Do you expect to, let us say, close this year at last year's sales level, or will you have that -10% to -12% decline still by the end of the year? What is your view on that, sir?

Speaker #3: What's your view on that, sir?

C Mithun Chand: Definitely the margin will be lower than what we have shown in the first quarter because as we are expecting some spillover sale in the second year, second rabi should be good because of the maize prices.

Mithun Chand: Definitely the margin will be lower than what we have shown in the first quarter because as we are expecting some spillover sale in the second year, second rabi should be good because of the maize prices.

Speaker #2: Definitely, the margin will be lower than what we are shown in the first quarter, because as we are expecting, sun is below us here, and the second year, second Rabi should be good because of the maize prices.

Speaker #2: It should narrow down to but to what extent that we need to see. It should not move up, but definitely it should be the gap will narrow down.

C Mithun Chand: It should narrow down, but to what extent that we need to see.

Mithun Chand: It should narrow down, but to what extent that we need to see.

Dhruv Saraf: All right.

C Mithun Chand: It should not move up, but definitely the gap will narrow down.

Mithun Chand: It should not move up, but definitely the gap will narrow down.

Speaker #3: Understood, sir. Understood. So just one last question on cotton, sir. So you spoke about in our previous interaction, you spoke about that this year there was an expectation that the illegal seed could come down.

Dhruv Saraf: Understood, sir. Sir, just one last question on cotton, sir. You spoke about, in our previous interactions, you spoke about that this year there was an expectation that the illegal seed could come down. But the illegal seed has again gone up this year. Do you see further threat or, let's say, do you see this becoming an even bigger problem going ahead? What were the reasons why the illegal seed went up while expectation was that it would come down?

Speaker #3: But the illegal seed has again gone up this year. So, do you see further threat, or let's say, do you see this becoming an even bigger problem going ahead?

Speaker #3: And what were the reasons why the illegal seed went up while the expectation was that it would come down?

Speaker #2: Basically, it was because of the monsoon. As the season gets prolonged and the monsoon gets delayed, the farmer compromises on the seed. If you see northern India, which was earlier than the monsoon, we were able to do well.

C Mithun Chand: Basically, it was because of monsoon. As the season gets prolonged, as the monsoon gets delayed, the farmer compromises on the seed. If you see Northern India, which was earlier than the monsoon, we were able to do well.

Mithun Chand: Basically, it was because of monsoon. As the season gets prolonged, as the monsoon gets delayed, the farmer compromises on the seed. If you see Northern India, which was earlier than the monsoon, we were able to do well.

Speaker #2: But, whereas in states like Gujarat and Maharashtra, these are impacted a lot, especially for us—Gujarat is impacted a lot this year.

C Mithun Chand: But whereas in states like Gujarat, Maharashtra, these are impacted a lot. Especially for us, Gujarat has impacted a lot this year.

Mithun Chand: But whereas in states like Gujarat, Maharashtra, these are impacted a lot. Especially for us, Gujarat has impacted a lot this year.

Speaker #3: Okay. Okay. Sure. All right, sir. I'll get back to you. Thank you.

Dhruv Saraf: Okay. Sure. All right, sir. I will get back in with you. Thank you.

Speaker #1: Thank you. Your next question comes from the line of Karan Talwar with DAM Capital. Please go ahead.

Operator: Thank you. Your next question comes from the line of Karan Talwar with DAM Capital. Please go ahead.

Speaker #3: Yeah. Hi, sir. Am I can you hear me? Yeah. Hi, sir. So thank you for taking my question. So just to on my to from my end.

Karan Talwar: Yeah. Hi, sir. Can you hear me?

C Mithun Chand: Yeah.

Mithun Chand: Yeah.

Karan Talwar: Yeah. Hi, sir. Thank you for taking my question. Sir, just two from my end. Firstly, you have highlighted that there is a chance that we may recover sales in Karnataka. If you could just quantify how much we have done last year versus how much we have done till now, so that we can just have a sense on what is the scope of recovery, please. That is number one.

Speaker #3: So firstly, you've highlighted that there's a chance we may recover sales in Karnataka. If you could just quantify how much we've done last year versus how much we've done till now, so that we can have a sense of what the scope of recovery is, please.

Speaker #3: That's number one.

Speaker #2: Last time, in the Kharif season, we had done close to 2,610 in Karnataka. This year, we have only done 1,510 in Karnataka. So we are down by around 1,100 to 1,210 only in Karnataka.

C Mithun Chand: Last time in the kharif, we had done close to 2,600 tons in Karnataka. This year, we have only done 1,500 tons in Karnataka. So we are down by around 1,100 to 1,200 tons only in Karnataka.

Mithun Chand: Last time in the kharif, we had done close to 2,600 tons in Karnataka. This year, we have only done 1,500 tons in Karnataka. So we are down by around 1,100 to 1,200 tons only in Karnataka.

Speaker #3: And you’re confident that we’ll have 40 to 50 crores of sales? I’m sorry?

Karan Talwar: You are confident that means that

C Mithun Chand: Which is around INR 40 to 50 crores of sale.

Mithun Chand: Which is around INR 40 to 50 crores of sale.

Karan Talwar: I'm sorry.

Speaker #2: Which is close to ₹40 to ₹50 crore, or ₹40 to ₹60 crore of sales.

C Mithun Chand: Which is close to INR 40 to 60 crores of sale.

Mithun Chand: Which is close to INR 40 to 60 crores of sale.

Speaker #3: And we remain fairly confident that we may let the chance that we may still be able to recover.

Karan Talwar: We remain fairly confident that there's a chance that we may still be able to recover the-

Speaker #2: As of now, we are pretty confident because we don't see any alternate crop coming there.

C Mithun Chand: As of now, we are pretty confident because we do not see any alternate crop coming there.

Mithun Chand: As of now, we are pretty confident because we do not see any alternate crop coming there.

Speaker #3: Understood, sir. Secondly, while you've given some color on margin, if you could also throw some light on how we should look at the overall revenue growth for the year.

Karan Talwar: Understood, sir. Secondly, while you have given some color on margin, if you would like to throw some light on how we should look at the overall revenue growth for the year.

Speaker #2: As I said, just answer in the earlier question. For the rest of the three quarters, it should not come down because, as we see, the Karnataka sale is coming in the next three quarters and Rabi should be well because of the maize prices, and because the majority of the contribution is made in the second half.

C Mithun Chand: As I said, I just answered an earlier question. For the rest of 3 quarters, it should not come down because as we see the Karnataka sale coming in the next 3 quarters, and rabi should be well because of the maize prices and because majority of the contributor is maize in the second half, in the next 3 quarters. So definitely the sale will be higher than the last year 3 quarters, and the sale revenue and the revenues will narrow down from this level. But to what extent it will cover, that we will see.

Mithun Chand: As I said, I just answered an earlier question. For the rest of 3 quarters, it should not come down because as we see the Karnataka sale coming in the next 3 quarters, and rabi should be well because of the maize prices and because majority of the contributor is maize in the second half, in the next 3 quarters. So definitely the sale will be higher than the last year 3 quarters, and the sale revenue and the revenues will narrow down from this level. But to what extent it will cover, that we will see.

Speaker #2: In the next three quarters, so definitely the sales will be higher than the last year's three quarters. And the sales revenue, and the revenues, will narrow down from this level.

Speaker #2: But to what extent it will cover up, that we'll see.

Speaker #3: Right, sir. So just one last question from my end. Are there any new hybrids or any performances, or any field trials that you've been doing across crops that you'd like to highlight?

Karan Talwar: Right, sir. Just one last from my end. Sir, any new hybrids or any performances of any field trials that you have been doing across crops that you would like to highlight?

Speaker #2: We are doing this across all crops. If you see our results also, the majority of the contribution—even in maize, rice, or bajra, or even in cotton—it's all the contribution of the key crops.

C Mithun Chand: We are doing across all crops. If you see our results also, majority of the contribution, even in maize, rice, or bajra, or even in cotton, it's all the contribution of the new crops. We are very bullish in the start of the year. We thought all the hybrids will do well, but unfortunately, the season has not come up as anticipated. That's fine. We are in a business where we are prone to these type of monsoon, but that's fine. This one of a year tough year. But overall, we see a very good growth and we are pretty confident of our hybrids, and we see a good growth in the coming years. We are not worried about in the mid or longer-term period.

Mithun Chand: We are doing across all crops. If you see our results also, majority of the contribution, even in maize, rice, or bajra, or even in cotton, it's all the contribution of the new crops. We are very bullish in the start of the year. We thought all the hybrids will do well, but unfortunately, the season has not come up as anticipated. That's fine. We are in a business where we are prone to these type of monsoon, but that's fine. This one of a year tough year. But overall, we see a very good growth and we are pretty confident of our hybrids, and we see a good growth in the coming years. We are not worried about in the mid or longer-term period.

Speaker #2: So, we were very bullish at the start of the year. We thought all the hybrids would do well, but unfortunately, the season has not come up as anticipated.

Speaker #2: But okay, that's fine. We are in a business where we are prone to this type of monsoon, but that's fine. This is a one-off a year touch here, but overall, we see very good growth and we are pretty confident of our hybrids, and we see good growth in the coming years.

Speaker #2: We are not worried about it in the longer-term, mid- or longer-term period.

Speaker #3: Right, sir. So, any color on how our product pipeline is also shaping up?

Karan Talwar: Right, sir. So any color on how our product pipeline is also shaping up?

Speaker #2: It's excellent when you compare the product pipeline. If you've seen the last 8–10 years, the product line we have right now is one of the best in the last 10 years.

C Mithun Chand: It's excellent when you compare the product pipeline. If you've seen the last 8, 10 years, the product line, what we have right now is one of the best in the last 10 years. But unfortunately, that is not turning up in the sales because of the various reasons, might be season for something else. But definitely, that will definitely come up and in the next 2 or 3 years, that will definitely reflect in the revenues as well.

Mithun Chand: It's excellent when you compare the product pipeline. If you've seen the last 8, 10 years, the product line, what we have right now is one of the best in the last 10 years. But unfortunately, that is not turning up in the sales because of the various reasons, might be season for something else. But definitely, that will definitely come up and in the next 2 or 3 years, that will definitely reflect in the revenues as well.

Speaker #2: But unfortunately, that is not turning into sales because of various reasons. It might be the season or something else. But definitely, that will come up.

Speaker #2: And in the next two or three years, that will definitely reflect in the revenues as well.

Speaker #3: Right, sir. So, thank you so much, and wish you all the best.

Karan Talwar: Right, sir. Thank you so much and wish you all the best.

Speaker #1: Thank you. A reminder to all the participants: if you wish to register for a question, you may press star and one. Our next question comes from the line of Viraj Kacharia with SIMPL.

Operator: Thank you. A reminder to all the participants, if you wish to register for a question, you may press star and one. Our next question comes from the line of Viraj Kacharia with SiMPL. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Yeah. Hi. Am I audible?

Viraj Kacharia: Yeah. Hi, Amar Amit?

Speaker #2: Yeah.

Operator: Yeah.

Speaker #4: Just a couple of questions. See, as you said, if you look at our financials over a very long period, the mix has changed from cotton to non-cotton.

Viraj Kacharia: Just a couple of questions. See, as you said that if you look at our financials over a very long period, the mix has changed from cotton to non-cotton. Now, if you look at this particular quarter, despite cotton share increasing where margins are lower, our gross margin has increased. Is it largely because of share of new products in each of the category improving further, or was there an element of price increases? If you look at it two, three years back, we have seen a very material increase in cost of production for seeds. Is it normalization of that or is it share of new products increasing? Any color you can give?

Speaker #4: Now, if you look at this particular quarter, despite cotton share increasing, the margins are lower; our gross margin has increased. So is it largely because of share of new products in each of the categories improving, or was there an element of price increases?

Speaker #4: I mean, if you look at the last two or three years, we have seen a very material increase in the cost of production for seeds. So, is it a normalization of that, or is it the share of new products increasing?

Speaker #4: Any color you can give?

Speaker #2: Rightly observed. In fact, if you recollect, on the last call also, we said that the cost of production is lower compared to the previous year, so that has added up.

C Mithun Chand: Rightly observed. In fact, if you recollect last call also, we said that the cost of production is lower than compared to previous years. So that has added up. In fact, the realizations of most of the crops are down when compared to last year.

Mithun Chand: Rightly observed. In fact, if you recollect last call also, we said that the cost of production is lower than compared to previous years. So that has added up. In fact, the realizations of most of the crops are down when compared to last year.

Speaker #2: In fact, the realizations of most of the crops are down compared to last year.

Speaker #4: Okay. But if you still compare to the...

Viraj Kacharia: Okay. But if you still compare it to the

Speaker #2: We had an advance we had an advantage in terms of the cost of production. That has contributed for us the increase in the profitability.

C Mithun Chand: But we had an advantage in terms of the cost of production. That has contributed for the increase in the profitability. And if you see, the cost of production is down by 2% to 3% compared to last year, even though we realize lower at the dealer side.

Mithun Chand: But we had an advantage in terms of the cost of production. That has contributed for the increase in the profitability. And if you see, the cost of production is down by 2% to 3% compared to last year, even though we realize lower at the dealer side.

Speaker #2: And if you see, the cost of production is down by 2 to 3 percent compared to last year, even though we realized lower at the dealer's end.

Speaker #4: What do you mean by "we have an advantage in cost of production"?

Viraj Kacharia: What do you mean by we have an advantage in cost of production?

Speaker #2: So what I mean to say is that the if you have realized 100 rupees last year per product, this year the realizations are down by two to three percent compared to last year.

C Mithun Chand: What I mean to say is that if you have realized INR 100 last year per product, this year, the realizations are down by 2% to 3% compared to last year. And the cost of production, even at this lower realized rate, the cost of production is lower than last year. I mean to say the cost of production is 4% to 5% lower than last year, and the realizations are 2% to 3%. Even in that stage, we were able to maintain that 3% growth in terms of the cost of production.

Mithun Chand: What I mean to say is that if you have realized INR 100 last year per product, this year, the realizations are down by 2% to 3% compared to last year. And the cost of production, even at this lower realized rate, the cost of production is lower than last year. I mean to say the cost of production is 4% to 5% lower than last year, and the realizations are 2% to 3%. Even in that stage, we were able to maintain that 3% growth in terms of the cost of production.

Speaker #2: And the cost of production, even if it's at a lower realized rate, the cost of production is lower than last year. I mean to say the cost of production is 4% to 5% lower than last year, and the realizations are 2% to 3%.

Speaker #2: Even in that stage, we were able to maintain that 3% growth in terms of the cost of production.

Speaker #4: Right. And do you see further?

Viraj Kacharia: Right. Do you see further scope for

Speaker #2: I don't know whether I was able to communicate it properly to you or not, but the realizations were lower by 2% to 3% than last year.

C Mithun Chand: I do not know I was able to communicate it properly to you or not, but the realizations were lower by 2% to 3% than last year.

Mithun Chand: I do not know I was able to communicate it properly to you or not, but the realizations were lower by 2% to 3% than last year.

Speaker #4: No, I got that. So, do you see?

Viraj Kacharia: No, I got that. Do you see

Speaker #2: In terms of actual, from the channel.

C Mithun Chand: in terms of actual realizations from the channel.

Mithun Chand: in terms of actual realizations from the channel.

Speaker #4: Okay. But do you see scope for further normalization in the cost of production? So, compared to, say, '25 space, do you see scope for further normalization in the cost of production?

Viraj Kacharia: Okay. Do you see scope for further normalization in cost of production? Compared to, say, 2025 space, do you see scope for further normalization in the cost of production? Not just for us, but everyone in the industry.

Speaker #4: Not just for us, but for everyone in the industry.

Speaker #2: Yes, it's normalized last year. But when you literally talk about next year, we may not take up the production that we took up last year because we have huge inventory.

C Mithun Chand: Yeah. It normalized last year, but when you literally talk of the next year, we may not take up the production what we have taken up last year because we have huge inventory, so the production will be very minimum for the next year. The cost of production what we have incurred last year should be more or less same for the next year.

Mithun Chand: Yeah. It normalized last year, but when you literally talk of the next year, we may not take up the production what we have taken up last year because we have huge inventory, so the production will be very minimum for the next year. The cost of production what we have incurred last year should be more or less same for the next year.

Speaker #2: So, the production will be very minimal for the next year. The cost of production we incurred last year should be more or less the same.

Speaker #2: For the next year same.

Viraj Kacharia: Okay. Second question is, if you look at 2020, we had a guide of in Q2 it is cotton. We had some good success in maize and rice, but there was quite a volatility in sustaining the sales because the regional contribution was quite high among few southern states, say for maize, and same for rice for us. Now, if you look at the current year, even I understand the season is bad, but in a down year, most of the volumes have gone back to the leader or the top two players, right? If I have to look at next three, five years kind of a horizon, how should we understand, one, the regional concentration and the seasonal concentration for the non-cotton portfolio, say maize, rice. How do you see that evolving?

Speaker #4: Okay, okay. Second question is, see, if you look at 2020, we had tried to portfolio towards cotton. So we had some good success in maize and rice.

Speaker #4: But there was quite a volatility in sustaining the sales because the regional contribution was quite high among a few certain states, say for maize, and the same for rice for us.

Speaker #4: Now, if you look at the current year—even if I understand the season is bad—but in a down year, most of the volumes have gone back to the leader or the top two players, right?

Speaker #4: So, if I have to look at the next three to five years as a kind of horizon, how should we understand, one, the regional concentration, and two, the seasonal concentration for the non-cotton portfolio—say, maize and rice? How do you see that evolving?

Speaker #2: If you see, we are not regionally concentrated. If you see cotton, cotton is in different states. Maize is in different states. Sunflower is in different states.

C Mithun Chand: If you see, we are not regionally concentrated. If you see cotton is in different states, maize is in different states, sunflower is in different states, rice is in different states. So we are across India. The only issue is that India is a vast country. We need to have a suitable hybrid for those segments. In kharif, we are pretty strong in Karnataka, Andhra, and Telangana. In rabi, we are strong in Bihar, UP, and some parts of Maharashtra. Madhya Pradesh, we are slightly weak. That hybrids we need to launch it. We have hybrids in Madhya Pradesh also, but they are all pretty new, so we couldn't do that. That is one of the reason. If you take other crops, if you take rice, even in these tough conditions, we are able to grow in rice with a big market share.

Mithun Chand: If you see, we are not regionally concentrated. If you see cotton is in different states, maize is in different states, sunflower is in different states, rice is in different states. So we are across India. The only issue is that India is a vast country. We need to have a suitable hybrid for those segments. In kharif, we are pretty strong in Karnataka, Andhra, and Telangana. In rabi, we are strong in Bihar, UP, and some parts of Maharashtra. Madhya Pradesh, we are slightly weak. That hybrids we need to launch it. We have hybrids in Madhya Pradesh also, but they are all pretty new, so we couldn't do that. That is one of the reason. If you take other crops, if you take rice, even in these tough conditions, we are able to grow in rice with a big market share.

Speaker #2: Rice is in different states. So, we are across India, but the only issue is that India is a vast country. We need to have a suitable hybrid for those segments.

Speaker #2: In Kharif, we are pretty strong in Karnataka, Andhra, and Telangana. In Rabi, we are strong in Bihar, UP, and some parts of Maharashtra. In Madhya Pradesh, we are slightly weak.

Speaker #2: The hybrids, we need to launch them, and we have hybrids in Madhya Pradesh also. But we are all pretty new, so we couldn't do that.

Speaker #2: That's one of the reasons. But if you take other crops, if you take rice, even in these tough conditions, we were able to grow rice.

Speaker #2: With a big market share, we are one of the largest players in rice.

C Mithun Chand: We are one of the largest player in rice.

Mithun Chand: We are one of the largest player in rice.

Speaker #4: Okay, okay, got it. And similarly, in terms of, say, maize or rice—especially maize—if I look at it on an annual basis, last year we did something like ₹400 crore of sales.

Viraj Kacharia: Okay. Got it. Similarly, in terms of, say, maize or rice, especially maize, if I look at on an annual basis, last year we did something like INR 400 crores of sales. How would the product portfolio be distributed, say, kharif, rabi, and spring?

Speaker #4: How would the product portfolio be distributed—say, Kharif, Rabi, and Spring?

Speaker #2: Last year, we introduced some production in spring. Earlier, we were not that big in spring. The results were good in spring corn. That's just last year.

C Mithun Chand: Last year we have introduced some production spring. Earlier we were not that big in spring. The results were good in spring corn. That's just last year we had done some sales. In kharif, as I said, we are pretty strong in the southern states, and in rabi we are strong in northern states. Now the hybrids are on the pipeline hybrids which are there, we are considering both kharif and rabi. Most of them are single cross hybrids, and we will be catering to all the markets in India now. Most of the hybrids are new. It need to just get more visibility at the farmer's level. That's the reason it will take some time. Otherwise, in terms of the portfolio, in terms of the pipeline, in terms of their performance, we are pretty much bullish.

Mithun Chand: Last year we have introduced some production spring. Earlier we were not that big in spring. The results were good in spring corn. That's just last year we had done some sales. In kharif, as I said, we are pretty strong in the southern states, and in rabi we are strong in northern states. Now the hybrids are on the pipeline hybrids which are there, we are considering both kharif and rabi. Most of them are single cross hybrids, and we will be catering to all the markets in India now. Most of the hybrids are new. It need to just get more visibility at the farmer's level. That's the reason it will take some time. Otherwise, in terms of the portfolio, in terms of the pipeline, in terms of their performance, we are pretty much bullish.

Speaker #2: We had done some sales. In Kharif, as I said, we are pretty strong in the southern states, and in Rabi, we are strong in the northern states.

Speaker #2: And now, the hybrids on the pipeline, the hybrid which are there, we are concentrating on both Kharif and Rabi. Most of them are single cross hybrids.

Speaker #2: And we will be catering to all the markets in India now. But most of the hybrids are new. They just need to get more visibility at the farmer's level.

Speaker #2: That's the reason it will take some time. But otherwise, in terms of the portfolio, in terms of the pipeline, in terms of their performance, we are pretty much bullish.

Speaker #4: Okay. Thank you.

Viraj Kacharia: Okay. Thank you.

Speaker #1: Thank you. The next question comes from the line of Praveen Potnuru, an individual investor. Please go ahead.

Operator: Thank you. The next question comes from the line of Praveen Potnuru, an individual investor. Please go ahead.

Speaker #5: Hello. Can you hear me?

Praveen Potnuru: Hello, can you hear me?

Speaker #2: Yeah.

Operator: Yeah.

Speaker #5: Okay, thank you for taking my question, sir. So, can you mention again how much is the cash on the books, and what is the expected cash on the books by the end of Q2?

Praveen Potnuru: Thank you for taking my question, sir. Can you mention again how much is the cash on the books, and what is the expected cash on the books by end of Q2, and about how much cash outflow we are going to expect for the buyback, if there is any?

Speaker #5: And about how much cash outflow are we going to expect for the buyback, if there is any?

Speaker #2: So, one thing, we have cash of close to 265 to 270 crores as of 30th June. By the next second quarter end, there may not be much significant increase in cash—maybe 20 to 30 crores more.

C Mithun Chand: One thing, we have a cash of close to INR 265 to INR 270 crores as of 30 June. By this next Q2 end, there may not be a much significant cash increase, maybe INR 20, INR 30 crores plus, close to INR 300 crores, not much. But coming back to buyback, that's again a board decision. We'll see whether if the board recommends we'll do and what amount they decide that we'll let you know once it's finalized in the board.

Mithun Chand: One thing, we have a cash of close to INR 265 to INR 270 crores as of 30 June. By this next Q2 end, there may not be a much significant cash increase, maybe INR 20, INR 30 crores plus, close to INR 300 crores, not much. But coming back to buyback, that's again a board decision. We'll see whether if the board recommends we'll do and what amount they decide that we'll let you know once it's finalized in the board.

Speaker #2: Close to ₹300 crores, not much. But coming back to the buyback, that's again a good decision. We'll see whether, if the board recommends, we'll do it, and what amount they decide—that we'll let you know once it's finalized in the board.

Speaker #5: Yeah, that answers my question. Thank you. So, my second question: For the last 10 years also, we didn't see much growth in sales or profit—with growth close to inflation only.

Praveen Potnuru: Yeah. That answers my question. Thank you. My second question, for the last 10 years or so, we did not see much growth in sales or profit. It is close to inflation only. How do we see our future for, let us say, next five years or 10 years, and what would be the drivers?

Speaker #5: And how do we see our future for, let's say, the next five years or ten years? And what would be the drivers?

Speaker #2: So, I've answered this question with the start of the fall itself, but anyway, I'll answer once again. I said that from the last 10 years, it looks like we remain the same there.

C Mithun Chand: I have answered this question at the start of the call itself, but anyway, I will answer once again. I said that from the last 10 years, it looks like we remained same there in terms of the revenues and profitability. But the product mix has changed, and the margins in the cotton have shrunk by more than 15% to 20%. Earlier it was 35% in terms of the EBITDA, now right now it is only 15% in terms of EBITDA. Even in that tough conditions, we were able to shift our focus to non-cotton crops, and we were able to manage the margins. Going forward, we see growth in both the segments, cotton and non-cotton segments, as we have very good hybrids in the pipeline. This year, we thought of a good growth this year, but unfortunately, we could not deliver that because of various reasons, mainly monsoon.

Mithun Chand: I have answered this question at the start of the call itself, but anyway, I will answer once again. I said that from the last 10 years, it looks like we remained same there in terms of the revenues and profitability. But the product mix has changed, and the margins in the cotton have shrunk by more than 15% to 20%. Earlier it was 35% in terms of the EBITDA, now right now it is only 15% in terms of EBITDA. Even in that tough conditions, we were able to shift our focus to non-cotton crops, and we were able to manage the margins. Going forward, we see growth in both the segments, cotton and non-cotton segments, as we have very good hybrids in the pipeline. This year, we thought of a good growth this year, but unfortunately, we could not deliver that because of various reasons, mainly monsoon.

Speaker #2: In terms of the revenues and profitability, the product mix has changed and the margins in cotton have shrunk by more than 15 to 20 percent.

Speaker #2: Like earlier it was 35% in terms of the EBITDA. Now right now it's only 15% in terms of EBITDA. Even in the tough conditions, we were able to shift our focus to non-cotton crops.

Speaker #2: And we were able to manage the margins. Going forward, we see growth in both segments, cotton and non-cotton, as we have very good hybrids in the pipeline.

Speaker #2: And this year, we thought of a good growth this year, but unfortunately, we couldn't deliver that because of various reasons. Mainly monsoon. But going forward, definitely we will we are confident that we can deliver both revenue growth and profitability.

C Mithun Chand: But going forward, definitely we are confident that we can deliver both revenue growth and profitability.

Mithun Chand: But going forward, definitely we are confident that we can deliver both revenue growth and profitability.

Speaker #5: And what would the contribution from exports look like?

Praveen Potnuru: What would be the contribution from exports look like?

Speaker #2: In the next three years—we said five years last year—we said that in five years we'll reach 100 crores. But now, in the next three years, we'll reach 100 crores.

C Mithun Chand: In the next three years, we said five years. In the last three years, we said that five years we will reach 100 crores, but in the next three years we will reach 100 crores, both in terms of vegetables and.

Mithun Chand: In the next three years, we said five years. In the last three years, we said that five years we will reach 100 crores, but in the next three years we will reach 100 crores, both in terms of vegetables and.

Speaker #2: Both in terms of vegetables and in terms of revenue.

Praveen Potnuru: Would it be margin accretive?

Speaker #5: Would that be margin equity?

C Mithun Chand: Margin will be in line with what we get now. It should be in between that 25% to 30%.

Mithun Chand: Margin will be in line with what we get now. It should be in between that 25% to 30%.

Speaker #2: It will be in line with what we get now. It should be in between that 25 to 30 percent.

Speaker #5: Okay. Thank you very much.

Praveen Potnuru: Okay. Thank you very much.

Speaker #1: Thank you. The next question comes from the line of Dhruv Saraf with Powher India Fund. Please go ahead.

Operator: Thank you. The next question comes on the line of Dhruv Saraf with Bowhead India Fund. Please go ahead.

Speaker #5: Oh, Mitun sir, if I look at the presentation, you spoke about two new products and hybrid rice, which almost accounted for 50–60 percent of your sales.

Dhruv Saraf: Mithun, sir, if I look at the presentation, you spoke about two new products in hybrid rice, which almost were like 50%, 60% of your sales. 62% of your sales. KRH7344 and KRH7227.

Speaker #5: 62 percent of your sales are from KRH 7344 and KRH 7227.

Speaker #2: Sixty-three percent of the sales is from new products. New product contribution.

C Mithun Chand: 50% to 60% of the sales is the new products, new product contribution.

Mithun Chand: 50% to 60% of the sales is the new products, new product contribution.

Speaker #5: Yes, so out of the ₹247 crores of hybrid rice, 53 percent came from new sales, new products. Right? That's what it means.

Dhruv Saraf: Yes. So out of the INR 247 crores of hybrid rice, 62% came from new sales, new products, right? That's what it means.

Speaker #2: One second, sorry. This is only for the new products—62 percent hybrid rice.

C Mithun Chand: Sorry. This is only for the new product, 62% hybrid rice.

Mithun Chand: Sorry. This is only for the new product, 62% hybrid rice.

Speaker #5: Yeah, yeah.

Dhruv Saraf: Yeah.

Speaker #2: Contributed. This is only for the new products, not for the entire portfolio.

C Mithun Chand: This is only for the new products, not for the entire portfolio.

Mithun Chand: This is only for the new products, not for the entire portfolio.

Speaker #5: Okay, okay. So, okay. Then my question will not stand, because I was about to ask you that 62% of the sales would come from new products.

Dhruv Saraf: Okay. Okay. Then my question will not stand because I was about to ask you that 62% of the sales would come from new products, it is not that case, right? So fair.

Speaker #5: Is that what it is? It's not the case, right? So, fair.

Speaker #2: No, no, no, no, no.

C Mithun Chand: No.

Mithun Chand: No.

Speaker #5: So, what would be the contribution from these products? Would it be like 10, 20 percent, 30 percent?

Dhruv Saraf: What would be the contribution from these products? Would it be like 10%, 20%, 30%?

Speaker #2: It should be below 20 percent—20, 25 percent. I'll give the exact number, but the majority of that is from the previous cold hybrids. But these are the new hybrids in different segments.

C Mithun Chand: It should be below 20%, 20%, 25%. I will give the exact number. But majority of that is previous old hybrids. But these are the new hybrids in different segments, where we see a lot of potential in that.

Mithun Chand: It should be below 20%, 20%, 25%. I will give the exact number. But majority of that is previous old hybrids. But these are the new hybrids in different segments, where we see a lot of potential in that.

Speaker #2: We see a lot of potential in that area.

Speaker #5: Okay, so sir, are they replacements for 468, or are they in a different market altogether?

Dhruv Saraf: Okay. Are they replacements for Kaveri 468 or are they like-

C Mithun Chand: No, they are not replacement. They are all in the different markets. Most of the new launches are in the different markets.

Mithun Chand: No, they are not replacement. They are all in the different markets. Most of the new launches are in the different markets.

Speaker #2: They are all in different markets. Most of the new launches are in different markets.

Speaker #5: Oh, all right, sir. Thank you.

Dhruv Saraf: All right, sir. Thank you.

Operator: Thank you. Our next question comes from the line of Chandramouli Jagannathan, an individual investor. Please go ahead.

Speaker #1: Thank you. Our next question comes from the line of Chandramohali Jagannathan, an individual investor. Please go ahead.

Speaker #5: Hello, sir. Earlier, it was kind of leading.

Chandramouli Jagannathan: Hello, sir. Earlier, you kind of-

Speaker #1: Sorry to interrupt. Chandramohali sir, your voice is very muffled. If I can request you to use the handset, please.

Operator: Sorry to interrupt. Chandramouli sir, your voice is very muffled. If I can request you to use the handset, please.

Speaker #5: Yeah, I'm using the handset. Can you hear me?

Chandramouli Jagannathan: Yeah, I'm using the handset. Can you hear me?

Speaker #2: Yeah, yeah.

Speaker #1: This is slightly better.

C Mithun Chand: Yeah.

Mithun Chand: Yeah.

Operator: This is slightly better.

Speaker #5: Yes, sir. Earlier, you were kind of saying that you will do about 18 to 20 percent for the next two to three years. I know, unfortunately, this year you kind of lost due to the weather conditions.

Chandramouli Jagannathan: Yes, sir. Earlier, you were kind of saying that you will do about 18% to 20% for the next two, three years. I know unfortunately this year you kind of lost due to the weather condition. Otherwise, your target is on intact the coming years because of the new thing.

Speaker #5: Otherwise, you are targeted on intact in the coming years because of the new thing.

Speaker #2: Yeah, we are there. Still, we maintain that 18 to 20 percent going forward. 15 to 18 percent, that's what we said. Still, even though this year is a bad year, but with the line with the pipeline and the hybrid what we have, and with the new launches and the performance of the new launches, definitely in the next two to three years, definitely we'll be able to recover that.

C Mithun Chand: Yeah. We still maintain that 18% to 20% going forward. 15% to 18%, that's what we said. Still, even though this year a bad year, but with the line, with the pipeline and the hybrid, what we have, and with the new launches and the performance of the new launches, definitely in the next two to three years, definitely we will be able to recover that. In the mid or longer term, we are not worried about that. This year, slightly we are down compared to previous year, and we have not maintained our expectations. That's only one off year for us.

Mithun Chand: Yeah. We still maintain that 18% to 20% going forward. 15% to 18%, that's what we said. Still, even though this year a bad year, but with the line, with the pipeline and the hybrid, what we have, and with the new launches and the performance of the new launches, definitely in the next two to three years, definitely we will be able to recover that. In the mid or longer term, we are not worried about that. This year, slightly we are down compared to previous year, and we have not maintained our expectations. That's only one off year for us.

Speaker #2: In the mid to longer term, we are not worried about that. This year, we are slightly down compared to the previous year, and we have not maintained our expectations.

Speaker #2: That's only one of the years for us.

Speaker #5: So you mean to say that in the next two to three years, we'll continue to grow?

Chandramouli Jagannathan: You mean to say that the next two, three, it will continue to grow.

Speaker #2: Yeah, yeah, definitely.

C Mithun Chand: Yeah, definitely.

Mithun Chand: Yeah, definitely.

Speaker #5: From the last year level?

Chandramouli Jagannathan: From the last year level.

Speaker #2: Yes, yes, yes.

C Mithun Chand: Yes.

Mithun Chand: Yes.

Speaker #5: Okay, okay. Thank you, sir.

Chandramouli Jagannathan: Okay, thank you, sir.

Speaker #1: Thank you. Ladies and gentlemen, that concludes our question-and-answer session. Thank you for joining the call. For any further information, please be in touch with Rama Naidu from Intellect PR at 99202 09623.

Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. Thank you for joining the call. For any other information, please be in touch with Rama Naidu from Intellect PR on 9920209623. On behalf of Kaveri Seed Company Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: On behalf of Kaveri Seed Company Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

C Mithun Chand: Thank you.

Mithun Chand: Thank you.

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Q1 2027 Kaveri Seed Company Ltd Earnings Call

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