Kaveri Seed Company Ltd — Call Transcript 2024

Nov 18, 2024

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18[th] N ovembe r 2024

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Bombay Stock Exchange Ltd., National Stock Exchange of India Ltd. 1[st] Fl o or New T rading R ing E xchange Plaza, 5[th] Floor, Roti m da Buil d ing P lot No.C / 1, G Blo c k, P.J.T o wers, D a lal Street , Fort, B andra K u rla Com p lex, Ban d ra (E) MUMBAI – 400 001 MUMBAI – 400 051 Scrip Code: 532899 Scrip Code: KSCL

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Dear Sir/ Ma d am,

Sub: Transcript – Kaveri Seed Q2 & FY 2024-25 Results Conference Call on Thursday, 14[th] November, 2024 – Reg.,

Purs u ant to R egulati o n 30 of SEBI ( L isting Obligation s and Disclosure Require m ents) Reg u lations, 2015, Plea s e find at t ached h e rewith T r anscript of Kaver i Seed Company L i mited Q2 & FY 2024- 2 5 Result s Confere n ce Call m ade on T hursday, 14[th] Nov e mber, 2024.

The transcript and audi o is uplo a ded on t h e Compa n y’s web s ite as we l l on belo w link:

https://www.kave r iseeds.in/ w p-content/ u ploads/20 2 4/11/Tran s cript.pdf

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This i s for you r information and r ecords.

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Tha n king you , Your s faithful l y, For KAVERI SEED COMPANY LIMITED Gundavaram Digitally signed by Gundavaram Venkata Venkata Bhaskar Bhaskar Rao Date: 2024.11.18 15:15:15 Rao +05'30' G.V. BHASKAR RAO MANAGING DIRECTOR Encl: a/a.

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“Kav e ri See d Com i mited p any L Q2 a n d H1 F Y25 E arnin g s Con f erence Call” Nove m ber 1 4 , 202 4

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MANAGEMENT: MR. MITHUN CHAND –EXECUTIVE DIRECTOR – KAVERI SEED COMPANY LIMITED

P age 1 of 10

Kaveri S eed Compa ny Limited Novembe r 14, 2024

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Moderator: Ladies a n d gentlemen, g ood day, and w elcome to the Kaveri Seed C ompany's Q2 a nd H1 FY '25 Earni n gs Conferenc e Call. As a r e minder, all pa r ticipant lines will be in the listen-only mode an d there will b e an opportu n ity for you t o ask questio n s after the presentation conclude s . Please note t h at this confer e nce is being r ecorded Joini n g us today on this call is Mr. Mith u n Chand, Exe c utive Director.

Before w e begin, I woul d like to menti o n that some o f the statement s made in toda y 's call may be forwa r d-looking in n ature and m a y involve ris k s and uncerta i nties. For a l i st of such considera t ions, please r efer to the e a rnings presen t ation. I woul d now like t o hand the conferen c e over to Mr. M ithun Chand. T hank you, an d over to you.

Mithun Chand:

Good evening, and welc o me, everyone , to our quarte r 2 first half '25 earnings conf e rence call. We hope you have ha d a chance to review the pr e sentation of o ur results, wh i ch is also available on our website. I would touc h upon the ope r ational and financial perform a nce of the company and then ope n the floor for the question- a nd-answer se s sion. First ha l f financial highlight s . Revenue from operations r egistered a g r owth of 3% t o INR 889.8 4 crores as compare d to INR 863 cr o res first half o f last year.

EBITDA was at INR 2 9 9.68 crores, r e mained flat as compared to INR 298.87 cr o res in first half '24. N et profit was at INR2 79.41 crores as com p ared to INR 2 78.55 crores. I t remained flat. Cas h on book stan d s at INR 559 crores as agai n st INR 732 cr o res in the cor r esponding half year. For Q2FY25 revenues from operations w a s at INR 81.7 6 crores. EBIT D A was at INR 6.89 crores. Net pr o fit was at INR 3.49 crores.

The majo r highlights, B o ard has recom m ended a 250 % dividend that is INR 5 per e q uity share on a face value of INR 2 per equity sha r e. Increase in v olumes in hy b rid rice and se l ection rice and maiz e that resulted i n increase in r evenues due t o good realizat i ons. Non-cott o n segment has grow n by 24% in th e first half of t h e year on acc o unt of major c ontributors lik e selection, hybrid rice and maize h a ve done well.

Exports d uring the first half were im p acted by unre s t in Banglade s h. This has resulted in a muted gr o wth rates at re v enue level an d further below EBITDA and P AT. Increase i n volumes in both s e lection and h y brid rice and m aize have res u lted in good g rowth rate on account of good realizations. Com p any's exports to recover in t he second hal f of the year d u ring Rabi season as the situation i n Bangladesh i s stable now. O perational-wis e , the contribu t ion of new products, the volumes of Bajra was u p from 59% to 73%. Hybrid rice volumes i n creased by 18% and r evenues incre a sed by 28%.

Selection rice volumes i n creased by 2 0 % and revenu e s by 34%. M a ize volumes i n creased by 9% and r evenues were 24%. Vegeta b le sales volu m e increased 1 1%, where o u r revenue decrease d by 13%. Exp o rts sales stan d at INR6.1 crores in first h a lf of '25 as c o mpared to INR25.93 crores in the f irst half of '24 . The decline i s due to politic a l unrest in Ba n gladesh. I will now o pen the floor f or question-an d -answer sessi o n.

Thank yo u . We will no w begin the question and answer session. We have the first q uestion on the line o f Dhruv Saraf fr om Bowhead I ndia.

Moderator:

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Dhruv Sa raf:	Sir, if I ju st look at your maize revenu e growth in H1 '25, which is at 24%. And i f I were to
	just knock off Q1 of this year. So what I see in Q2 ma ize have degro wn for the com pany Y-o-
	Y to the tune of around 30% to 40% . So what cou ld be the reas on, sir, given that other
	competito rs have shown good results in maize in Q2 sp ecifically?
Mithun C hand:	Dhruv, ma jority of the sa les were there in the first qua rter itself. Even though it's in the second
	quarter, it 's nothing but the spillovero f the first quar ter. So we had a good sale in the first
	quarter. I don't know ab out the other c ompanies they might have do ne the sale in the second
	quarter, bu t it's all of a ha lf-to-half comp arison is a goo d comparison.
Dhruv Sa raf:	Right. So there couldb e some front-l oading that ha ppens, whichi s why Q2 wa s subdued,
	basically?
Mithun C hand:	Not exact ly front-loading , but we take the actual liqui dation of the s tock. But thea reas where
	we operat e, the liquidatio n might havet aken place in th e first quarter itself.
Dhruv Sa raf:	All right. That helps.A nd sir, justt o understandt he difference between stand alone and
	consolidat ed numbers fo r this quarter.S o we feel like INR 50 crores difference. So could you
	just tell us what this diffe rence is on acc ount of?
Mithun C hand:	Sorry?
Dhruv Sa raf:	The differ ence betweens tandalone and consolidatedn umbers. What explains the di fference? I
	mean, wh at leads to thed ifference betw een standalone and consolidat ed number ofQ 2?
Mithun C hand:	You justw anted to have the consolidate d for the Q2?
Dhruv Sa raf:	Yes. So I mean, sir, con solidated forQ 2 is at INR 13 7 crores, where as stand-alone is INR 85
	crores. So there is a diffe rence of INR5 0 crores thatw e see. What ac counts for this difference
	of INR50 crores?
Mithun C hand:	So basica lly, we haveo ther 4 subsidi aries in the co mpany. One is Microtecka nd Aditya
	Agritech, these are the co ntribution from those compan ies.
Moderato r:	Thank you . We have the next questionf rom the line of Gunit Singh fr om CCI.
Gunit Sin gh:	Sir, I wan t to understan d with the ne w tax regime, I mean, woul d we still be able to do
	buybacks going forward or buybacks ar e out of the que stion?
Mithun C hand:	Again, the re's a managem ent decision th at we need to take, but we ha ve still more ti me for the
	buybackb ecause we hav e completed the buyback in th e last March.S o we will decid e later.
Gunit Sin gh:	Yes. I me an, you will de cide, but I'ms aying that, Im ean, is it stillp ossible with th e new tax
	regime or is it practica lly impossible now with the new tax reg ime? I mean, I want to
	understan d the view ofm anagement on this.

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Mithun Chand: So that's all that we ne e d to discuss a n d decide. It's not an individ u al decision. I t 's a Board decision. But we see h o w the shareho l ders get bene f ited out of it. I n the next qu a rter or so, we'll hav e a clear clarity on it.

Gunit Singh: All right. So currently, y o u haven't hav e a discussion r e garding this y e t? Mithun Chand: Yes. Still , we have some more time left for that. Moderator: Thank y o u. We have t h e next questi o n from the l i ne of Mr. Ni t in Awasthi fr o m InCred Equities. Nitin Awasthi: Wanted s o me volume n u mbers. if yo u could shed li g ht on your 4 c ore products, how much was the s a le in volume t erms for the fi r st half of this y ear? That wo u ld be cotton, h ybrid rice, selection r ice and maize. Mithun Chand: You wan t the overall vo l umes? Nitin Awasthi: Yes, sir, t o tal volumes j u st for these 4 p roducts. Mithun Chand: So usuall y , we are not d isclosing volu m es as of now, but if you w a nt, I can give the overall company volumes. For t h e first half of l ast year, we h a d done volum e s of INR 3.97 crores kgs. For this y e ar, we have d o ne INR 4.39 c r ores kgs. Nitin Awasthi: Okay. And what has bee n the realizatio n in the first half per package o f cotton? Mithun Chand: The reali z ation is aroun d close to INR 7 30 odd. Nitin Awasthi: Okay. So INR 730 odd. Sir, next thing I wish to und e rstand is how m uch is the m a ize market expandin g by? what wa s our share? A nd where do w e indicate to g o with the gr o wth in the market? Mithun Chand: As of no w , if you see c o mpared to last half of this ha l f year, the maize was up by c lose to 8% to 9%. B ut going forw a rd, we see a g o od acreage c o ming in maize , as the ethano l plants are also com i ng up, the m a ize are good. I t's much rem u nerative for t h e farmer now . We think going for w ard, maize as a crop should d o well. Nitin Awasthi: Sir, the m arket share a b i t? Mithun Chand: Market s h are of Kaveri? Nitin Awasthi: Yes. Mithun Chand: At presen t , we have a m a rket share of 8 % to 9%. Yea r -on-year, we t h ink that we ca n grow our market s h are, especially in maize. We have very good pipeline of h ybrids in maize. And not only that, even maize is much visible i n the first hal f . You can see even though t h e cotton is down by m ore than 30 % , close to 30% in the first hal f , we were abl e to match our r evenues as we have i ncreased our s a les in both ric e and maize se g ments. Overa l l, you can say non-cotton segment. A nd going for w ard, which we see a very go o d growth rate c oming in for t h ese crops.

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Nitin Awasthi: Understo o d, sir. But th e main season f rom maize w h ere you have t he higher sales, maize is normally a crop where i n H2 sales are higher than H 1 . So this year again and goi n g forward, you expe c t a similar kin d of growth or m ore growth in H2 for maize? Mithun Chand: I don't think so. Usuall y , H1 contributes the majori t y of the maiz e . Even for la s t year, the maize was around INR 1 20 crores out of overall IN R 190 crores in H1. So H1 do m inates the majority o f the time. Bu t in the second h alf sale, maiz e is the only cr o p which contri b utes more to the rev e nue. Moderator: We have t he next questi o n from the lin e of Harsh Vor a from D.R. Ch o ksey. Please g o ahead. Harsh Vora: My quest i on is regardin g vegetable se g ment. If you c an just throw s ome light on t he drop in revenues we had witnes s ed in H1? An d are you envi s ioning the gr o wth of this se g ment over the next 3 years? And d o you see any e x port potential i n this segmen t ? Mithun Chand: So you're talking about e xport of cotto n ? Harsh Vora: Vegetabl e seed. Mithun Chand: Vegetabl e seed, if you s e e the overall f irst half, there' s a slight decli n e of INR 2.5 c rores, INR 3 crores, i n percentage terms, it comes to 12% odd. B ut the season j ust was delay e d this year because o f the rainfall a nd heavy rai n fall in most o f the parts. W e don't see an y threat in vegetable seed. We are pretty confide n t that we'll gr o w in vegetab l e as desired, t h at will be contribut e d in the secon d half of the se a son. Harsh Vora: Got it, sir . And any exp o rt potential goi n g forward? Mithun Chand: Last year , if you see the overall export s of around IN R 65-odd cror e s. We have do n e close to INR 25-odd crores in B a ngladesh itsel f . And other sale in Tanzania of INR 27 cro r es, if you recollect l ast year conca l l, I said that's o ne of the core s ales because w e had done a g overnment sale. But espe c ially in terms o f Bangladesh, out of this IN R 24 crores, w e might lose IN R 10 crores to INR12 crores in expo r t because we a lready lost the season becaus e of the unrest, but we are trying to get that sale i n some other parts of the w orld because we are starti n g in other countries like Vietnam, I vory coast. W e are getting o r ders from ther e . So we see t h at some of the reven u e should be c o vered in those p arts.

But if yo u see our over a ll growth of e x ports leaving t h is year like t h is. But overall , if you see the good g rowth in export as well as w e are trying to g row, as we ar e entering into m any other new cou n tries and we are getting ve r y encouragin g business fro m those count r ies as our hybrids a r e really doing w ell. We are f a irly confident a bout export b u siness as well.

Harsh Vora: Got it sir. So you're plan n ing to do exp o rts across all p r oducts, right? Mithun Chand: Yes, espe c ially all prod u cts under not c o tton, but basi c ally maize, ric e and vegetabl e s.

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Moderator: Thank yo u . We have th e next question from the line o f Sanjeev S f r om DreamLadder. Please go ahead.

Sanjeev S :	I just wan ted to get a sen se of how theg overnment bus iness is plannin g out?
Mithun C hand:	Governme nt business for ? our company ?
Sanjeev S :	Yes.
Mithun C hand:	So we do n't participate much in the government su bsidies. If you see the reven ue of the
	company for this year, it 's hardly some few crores, ev en I doubt tha t it's in a single digit, not
	more than that.
Sanjeev S :	Okay. An d any new prod ucts that haveb een launched or how is the p ipeline going fo rward?
Mithun C hand:	That's a c ontinuous activ ity what we do . We alwayst ry new produc ts in each and every crop
	segment. The launchesa re in maize,c otton, even in rice and other crops as well , including
	bajra and wheat and mu stard. So that' s regular activi ty, and therea re more laun ched apart
	from thes e hybrids whi ch are launch ed, there are many other hy brids, which are in the
	pipeline,w hich are also- - have a goodp otential in the future years.
Sanjeev S :	So howm uch would bet he share of new products laun ched and the ov erall revenue?
Mithun C hand:	That depe nds on the cro p-to-crop. Usu ally, the hybri d which has la unched in the last 3 to 5
	years, we call it a newp roduct. Theo verall contribu tion will be in between 20% to 35% in
	every year .
Sanjeev S :	Okay. An d what wouldb e the capex for the current fis cal?
Mithun C hand:	Most of th e capex is alre ady done. Like we might inve st over INR 25 to INR 30 cro res for this
	year. And year-on-year, what we alway s say, like INR 35 crores to IN R 40 crores,b ut INR 25
	crores toI NR3 0 croress hould be more than enough.
Sanjeev S :	Okay. An d we have sub stantial investm ents also. And since we hav e most of the Capex, we
	have alre ady undertaken , is there any plan to distri bute surplusc ash to investo rs through
	maybe hig her dividends or buybacks?
Mithun C hand:	So if you see in the last 7 to 8 years,w e have done m ore than 6 buyb acks, and ever y year, we
	are a divi dend paying c ompany. And we have justc ompleted our buyback in the month of
	February- March. So alw ays, we try to distribute cash, which is notr equired for the company.
	So as ear lier I answered the question, like regarding the buybackt ax has now ch anged, we
	need to ta ke a decisiono n that. I think in the next com ing quarters,w e'll have clear clarity on
	that.
Sanjeev S :	And sir,t he reservoir le vels are likea lmost 87% ful l and are weg oing to be go od growth
	because o f this?
Mithun C hand:	Sorry? Wh ich levels?

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Sanjeev S :	Reservoir levels.
Mithun C hand:	Okay.
Sanjeev S :	And we're expecting goo d demand asw ell as outputi n the rabi seas on. How shoul d that kind
	of lead to increase in sow ing”
Mithun C hand:	More or le ss, Rabi for us is a very lean quarter, usually second half is a very lean qu arter when
	compared to first half.M ost of the cro ps are like whe at and rice, w hich are all sel ection rice
	and some sort of a mai ze. So maize, we think itw ill be in linew ith last year's numbers.
	Vegetable is a very smal l segment foru s, but we seea good growthi n vegetables.B ut overall,
	if you see second half,w e should be inl ine with last ye ar's numbers.
Moderato r:	Thank yo u. We have the next question from the line of Anurag Jain , an Individua l Investor.
	Please go ahead.
Anurag J ain:	Good eve ning, sir. Myq uestion is fort he half year ba lance sheet, th e outstandinga mount for
	biological assets is at IN R 383 crores. This is the hig hest ever in la st 4 to 5 years . So is this
	indicative of the antici pated growth for next year , is the comp any undertaki ng higher
	production for the seeds for use in then ext one year?
Mithun C hand:	Yes. That 's one way to lo ok at it. But as rightly said, th e production is pretty high th is year and
	I think we have one of th e largest produ ction, what we have taken int he company'sh istory. As
	we havem ost of the inv entories are ata lmost zero lev el. So we are tr ying to produc e more. So
	that is one of the reasons where we see higher product ion. And the o ther thing is tha t we see a
	very good areas coming up. I mean to say, very goo d volumes, w e are anticipati ng a good
	volume fo r the next com ing years. It'sa combinationo f both. The pr oduction is mo re and that
	same is af fecting the bala nce sheet.
Moderato r:	Thank you . We have the next questionf rom the line of Dhruv Saraf fr om BowheadI ndia.
Dhruv Sa raf:	Mithun sir , we had some challenges inc otton in terms of production over the half ye ar. So fair
	to say tha t these challeng es are now be hind us and th e next cotton s eason shouldb e good for
	us in term s of volume at least?
Mithun C hand:	Yes, thek ind of product ion what we ha ve taken out th is year and th e current crop is what we
	see usuall y now unlessa nd until some thing really ba d happens with the climaticc onditions.
	Otherwise , we'll get the anticipated p roduction and with a goody ield. So I don 't see any
	challenges in the product ion for the nex t year, not only in cotton, buti n most of thec rops.
Dhruv Sa raf:	I had a qu estion on high -density planti ng. Recently,t here have been some actions and things
	set by the textile ministr y regarding pr omoting theu se of high-den sity plantingp ractices in
	cotton. So are you seein g any actionh appening on th e ground? Or is it just stillm ore word
	than actio n?
Mithun C hand:	Basically, most of the co mpanies includ ing Kaveri isw orking on high -density planti ng. But we
	are yet to get a very suita ble hybrid, wh ich give better yields. But the research is on, definitely,

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as the mi n ister said and t he industry is tr ying for it, de f initely down t h e line the futu r e of cotton field will b e high-densit y plantation.

The othe r reason is tha t even getting daily labour i s difficult to get, especially t o pick the cotton se e d. The picki n g of cotton crop should be m echanized. S o that is also one of the reasons w hy the industr y will move to h igh-density pl a nting. Dhruv Saraf: And so y ou have to la u nch the prod u ct, I think it's 9292. Was it specific for h i gh-density planting? Or is it, I mea n , agnostic of t h at? Mithun Chand: It's not e x actly for high-density plantin g , but if you s e e the crop, it's slightly high d ensity, but it's not li k e what is ther e . High-densit y plantation is n othing like th a t is more than double the yield rate what we saw n ow. It is more t han that, but a t least double. Moderator: We have t he next questi o n on the line of Rohan Patel f rom Turtle Ca p ital. Please go ahead. Rohan Patel: Consideri n g that this ye a r, our base for the cotton is t h e lowest. And we expect tha t next year, there are n o more produ c tion challenge s . So with this l ow sales base, how much can cotton can grow fro m here? Can w e get back to I N R 350 to INR400 crores base n ext year? Mithun Chand: This year , we have done close to INR 3 4 0 crores this y ear itself. Rohan Patel: In your p r esentation, is i t shown H1 tha t you did INR 2 58 crores? Mithun Chand: INR 258 crores, you're right, you're r i ght. Cotton, N ext year, it sh o uld be like at least 20% more tha n what we had a t now. Rohan Patel: Okay. 20 % more than w hat we had done. And con s idering that o u r non-cotton, t he base is higher, w e are growing in like aroun d like 25% to 3 0% in all of t he hybrid rice , selection, maize. S o will this trend continue? Mithun Chand: What we see is that ove r all this year, w e had a very m uted growth b ecause there a r e a couple of reason s . One is the c o tton, we are d own more tha n 30% and the other thing w h ere we are slightly d o wn in terms o f the exports, t h e exports have not as anticip a ted for whatev e r reason it is. So goi n g forward, w h at we see is th a t a 10% to 12 % growth in re v enues and 15 % to 18% of the botto m line should m uch reflect. But next y ear, as we see , as cotton is al r eady low, we' l l at least grow by 20%. And o ther crops, we see a good potential in most of the crops. So nex t year, the gro w th rate shoul d be in that 15% to 2 0 %. Rohan Patel: 15% to 2 0 % should be t h e growth rate f or next year? Mithun Chand: Yes. Rohan Patel: And that w ould lead to l i ke 20% to 25 % growth in bot t om line? Mithun Chand: It should b e more than 2 0 % plus.

P age 8 of 10

Kaveri S eed Compa ny Limited Novembe r 14, 2024

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Rohan Patel: Okay. A n d we were going to bring s o me market share back, we h ave lost market share in cotton d u e to our hybri d s being matu r e enough and we were plan n ing to bring 2 to 3 new hybrids d u ring the quar t er to get back our market s h are. So how i s the progress g oing over there? Ha v e we started. Mithun Chand: Yes, for t h e next year, w hat I'm sayin g of the 20% g r owth. Basicall y , it's only bec a use of the new laun c h products. W e are seeing g o od traction in those product s , and we are giving good productio n for those pr o ducts as well. So those are t h e major cont r ibutors for the growth of next year. Rohan Patel: Okay. A n d after we rea c hed back to I N R 350 crores, say, a base in cotton next ye a r. So how will cotton as a portfoli o grow from o v er there? Lik e can we com e back to INR v 500 crores product o f cotton , again , like what we u sed to have in the past Mithun Chand: Sure. What we believe i nternally is th a t we have ver y good pipelin e products an d which are recently l a unched, are also giving very good results. W e are pretty s u re that we can go back to those pre v ious levels what we had. It's a matter of 3 to 4 years from here. Rohan Patel: Okay. And what about m edium to long - term time hori z on. And the n o n-cotton port fo lio should be growi n g like at a rate of somewhere around 15%? C an we assume ? Mithun Chand: Already, w e are one of t h e biggest in th e non-cotton s e gment and as a crop, it's gro w ing, and as a compa n y, we are doing much bett e r than the in d ustry. So these 2 combinati o ns should contribut e , not particula r ly the cotton, right, but we h ave many ot h er products li k e mustard, Bajra, So r ghum and wh e at. There are m any other products. So as a whole, if you d ivide both cotton an d noncotton se g ment, as cotto n is with a low base, it should be in that 15 % to 20% in the next 3 to 4 years. A n d this should b e in between 1 5% to 20%. O verall, as a co m pany, we see 12% to 15% growth c onservatively. Rohan Patel: Best of luck for future. Moderator: Thank yo u . We have th e next question from the line o f Mohammed Patel from Ca r e Portfolio Manager s . Mohammed Patel: Sir, this i s a follow-up t o previous par t icipants. So th e non-cotton h a s done really w ell in FY '25 and t h e base is high. So should w e expect non-c o tton growth t o slow down i n FY '26 to single digit? Mithun Chand: We don't see any single digit growth, i t should be a d ouble-digit gr o wth, may not b e like that 25% or s o , but it should b e in the 12% t o 15%. Mohammed Patel: Even on t h is higher base? Mithun Chand: Yes. Mohammed Patel: Okay. M y next question is, exports of I N R 6 crores in H1 FY '25. W h at should be t h is number for H2 ro u ghly?

P age 9 of 10

Kaveri S eed Compa ny Limited Novembe r 14, 2024

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Mithun Chand: Overall, w e have done I N R 66 crores last year in ter m s of the expo r ts. As I said e a rlier, there was a on e time sale of I N R 28 crores fr o m Tanzania, w hich we don't know whether we'll get it or not. T h at again depen d s on the gove r nment policy a nd other thing s we have done like NR25 crores in B angladesh. S o INR 25 crores Bangladesh sale will be lik e INR 12 o IN R 13 crores this year. We have alrea d y lost some sa l es in the seco n d quarter.

Whereas t he decline in B angladesh sal e s, maybe like I NR 6 or INR 7 crores might b e covered in other p arts of the w o rld like we h a ve Vietnam, I vory Coast a n d other count r ies we are exporting , so that we ha v e a chance to c over. But in te r ms of Tanzan i a, we need to see whether we'll get t hose type of q u arter or not. B u t going forwa r d, if you see e x port as a seg m ent, it will grow at m ore than 15% as a whole on a year-on-yea r basis. We ne e d to take the b ase of this year. Thi s year, we can e asily grow at 15% to 20% in v egetable in ex p ort market. Mohammed Patel: Then it s h ould be INR 2 0 crores, exclu d ing Tanzania? Mithun Chand: It should be much better than that. If y ou see exactl y like we hav e done only I N R 6 crores from first half of export t his year, next h alf would be i n between INR 30 to INR40 c r ores. Mohammed Patel: And excl u ding Tanzania? Mithun Chand: Overall. T anzania, we d o n't know, but it should be pl u s or minus, s h ould be INR 3 0 and INR 40 crores. Mohammed Patel: And on t h at base, we ca n expect to gro w at 15% to 20 % ? Mithun Chand: Yes. Moderator: Thank you. As there ar e no further qu e stions. This w ill be the end of the confere n ce. Thank you for j o ining the call. For any other i nformation, please be in tou c h with Rama N aidu from Intellect P R on 992-020 - 9623. On beha l f of Kaveri Se e d Company L i mited, that co n cludes this conferen c e. Thank you fo r joining us. Y ou may now d i sconnect your lines.

P age 10 of 10