Kaveri Seed Company Limited — Important, 13-11-2024: Updates

Kaveri Seed Company Limited reported a solid performance for the first half of FY25, with net sales reaching ₹889.84 Cr, marking a growth of 3.06% compared to the previous year. The non-cotton segment fueled growth, up 24%, driven by strong performance in hybrid and selection rice, as well as maize. EBITDA was relatively stable at ₹299.68 Cr, reflecting a slight margin decline to 33.68%.

Despite a challenging export environment impacted by unrest in Bangladesh, the company anticipates recovery in the second half as conditions stabilize. Maize acreage has increased by 3.85%, and rice sowing has risen by 10%, pointing to a favorable market outlook. The board has proposed a 250% dividend, signaling confidence in future profitability.

Investors should watch closely for continuing developments in the export market and ongoing growth in the non-cotton segment, which collectively reflect a positive growth trajectory for Kaveri Seeds.