Kaveri Seed Company Ltd — Call Transcript 2025

May 23, 2025

23[rd] May 2025

Bombay Stock Exchange Ltd., 1[st] Floor New Trading Ring Rotimda Building P.J.Towers, Dalal Street, Fort, MUMBAI – 400 001 Scrip Code: 532899

National Stock Exchange of India Ltd. Exchange Plaza, 5[th] Floor, Plot No.C/1, G Block, Bandra Kurla Complex, Bandra (E) MUMBAI – 400 051 Scrip Code: KSCL

Dear Sir/ Madam,

Sub: Transcript – Kaveri Seed Q4 & FY 2024-25 Results Conference Call on Tuesday, 20[th] May, 2025 – Reg.,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Please find attached herewith Transcript of Kaveri Seed Company Limited Q4 & FY 2024-25 Results Conference Call made on Tuesday, 20[th] May, 2025.

The transcript and audio is uploaded on the Company’s website as well on below link:

• • https://www.kaveriseeds.in/wp content/uploads/2025/05/Transcript 1.pdf

This is for your information and records.

Thanking you,

Yours faithfully,

For KAVERI SEED COMPANY LIMITED

Digitally signed by Sreelatha Sreelatha Vishnubhotla Vishnubhotla Date: 2025.05.23 13:02:20 +05'30'

SREELATHA VISHNUBHOTLA COMPANY SECRETARY

Encl: a/a.

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“Kav e ri See d Com i mited p any L Q4 & FY '25 Ea r nings C onference C all”

Ma y 20, 2 025

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

MODERATOR: MR. RAMA NAIDU – INTELLECT PR

P age 1 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Moderator: Ladies and gentlemen, go o d day, a n d welcom e to Kav e ri Seed Compa n y's Q4 an d FY '25 E arnings C o nference C all. As a r e minder, all part i cipant line s will be in the listen- o nly mode a nd there w ill be an opport u nity for yo u to ask qu e stions at t h e end of t o day’s pres e ntation. Please n ote that th i s conferen c e call will b e recorde d .

Joinin g us today on this call i s Mr. Mith u n Chand, E xecutive D irector. Before we begin, I would li k e to menti o n that so m e of the st a tements made i n today's call may be f o rward-loo k ing in nat u re and ma y involve risk an d uncertain t ies. For a list of suc h considera t ion, please refer to the ear n ings prese n tation.

I woul d now like t o hand th e call over t o Mr. Mit h un Chand. Over to you, si r .

Mithun Chand:

Thank you. Good evening, a nd welco m e, everyo n e, to our q uarter 4 financi a l year '2 5 Earnings Conferenc e Call. W e hope yo u had a chance to review t h e presenta t ion of our results, wh i ch is also a vailable on ou r website. I would touch up o n the operational f inancial perfor m ance of th e company and then o p en the flo o r for the q uestionand-an s wer sessio n .

Financ i al year Q 4FY2525 financial highlight s . Revenue from operati o ns was at R S. 76.95 c rores as c o mpared to Rs. 80.54 c rores in Q4FY 2 4. EBITD A was at n e gative Rs. 15.31 cro r es as com p ared to negati v e Rs. 10.7 2 crores in Q4FY24. N et profit w as at nega t ive RS. 30 cror e s as comp a red to RS. 2.79 crore s in Q4FY2 4 .

Reven u e from o p erations w as at Rs. 1121.57 c rores in F Y25 as compa r ed to RS. 1 062.43 cr o res in FY 2 4, grown b y 5.57%. E BITDA was at R S. R274. 2 9 crores i n FY25 as c ompared t o RS. 270. 4 3 crores in FY 2 4, grown b y 1.43%. Net profit was at R S . 265.21 c rores in FY25 a s compare d to RS. 29 3 crores in FY24. Cas h on book s tands at RS. 55 6 crores in FY25 a s against R S. 443 cror e s in FY24 .

P age 2 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Major highlights, witnessed good gro w th rates a cross all o ur noncotton s egments like hybrid r ice, selecti o n rice, m a ize and ve g etables. Volum e growth a c ross segm e nts, like B a jra, hybrid rice, selection rice, maize a nd vegeta b les has res u lted in pr o portionate higher real i zations, which i s a very en c ouraging t r end.

PAT f o r the curr e nt year is d own on a c count of a one-time entry of interes t of RS. 8. 8 5 crores on the loan given by t h e company to the emplo y ee trust a n d increase in employ e e cost of R S. 4.95 c r ores on accoun t of increa s e in valua t ion of ES O Ps given for emplo y ees and increas e in deprec i ation of R S . 5.68 cro r es due to r ecent addi t ion of a new of f ice.

Reven u e during Q 4FY25 w a s slightly d own beca u se of no o ne-time exports to Gover n ment of T a nzania worth RS. 24 crores in f inancial year ' 2 5 -- FY2 4 . Acquire d remaini n g 30% st a ke in dis t ribution compa n y, Aditya Agritech P rivate Li m ited for R S. 23.60 crores to increas e company's stake to 1 0 0%.

Some o f the oper a tional hig h lights. The contributi o n on new p roducts to vol u mes of Ba j ra was up from 64% to 74%. Hybrid rice v olumes increas e d by 13 % and rev e nues increased by 2 6 %. Select i on rice volum e s increase d by 22% and reven u es increas e d by 39 % . Maize volum e s increase d by 7% an d revenues i n creased b y 22%.

Vegeta b le seed volumes incr e ased by 3 % , whereas revenues i n creased by 8%. Export sa l es stands a t RS. 22 c rores in fi n ancial ye a r '25 as compa r ed to RS. 66 crores i n FY24. This decline is due to political unrest in Bangl a desh, and there w a s no on e -time ord e r from govern m ent of Ta n zania. Vo l umes of n o n-cotton h y brids incr e ased by 24% a n d revenue s by 22%. Volumes o f cotton h y brid decr e ased by 35% a n d revenues decreased b y 27%.

I woul d now ope n the floor for questi o n-and-ans w er sessio n . Thank you.

P age 3 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Moderator: Thank you very m uch. We w ill now begin the q u estion an d answer session. The first q uestion is f rom the li n e of Agast y a Dave fr o m CAO Capital.

• Agastya Dave: Sir, co n gratulatio n s. Sir, ho w are you seeing the upcoming season? The bu i ldup on th e balance s h eet indica t es that you guys are p r eparing for a f a irly robust season. Bu t I would li k e to unde r stand your point of view, w hat are y o u seeing i n the mar k et? And h o w do you see the season p anning ou t ?

• Mithun Chand: The se a son looks g ood for th e coming y e ar, even t h e predictio n for the monso o n is good. We might g et monso o n on time. T he acreag e s at the present looks mo r e or less s t able. Ther e is a little pressure o n cotton acreag e s, but we s ee a very encouraging trend for maize co m ing up. And dr y segments , it will be s lightly sid e ways, but i t should be stable. In ter m s of our pl a ns, we hav e built up i n ventory fo r couple of reasons. One, w e anticipat e a good s e ason. Sec o nd thing, a s we wer e almost empty w ith the e n tire inven t ory, and it was reall y tough in t erms to produc e more in t hese toug h times. So where the strategy w a nted to mainta i n a buffer inventory, that's one o f the reas o n why we built up the inv e ntory.

• Moderator: The ne x t question is from the line of Saa n ia Jain fro m Care P M S. Saania Jain: So, jus t two quest i on. What i s the expe c tations of o ur cotton p ortfolio in quar t er 1? And since our n on-cotton p ortfolio has done ver y well in FY '25, what do we expect in FY '26 considering th e high base ?

• Mithun Chand: Regard i ng cotton, last year w e were do w n by close to 30% in t erms of the vol u mes. And with the l o w base, we are prett y confident that we will gr o w in cotto n this year, even thou g h the acre a ges may n o t grow, but as a compan y as a level, we'll gro w with this base. An d we are launching couple o f new hyb r ids, which w e have te s ted last ti m e.

P age 4 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Those h ybrids are also doing well. So a s a cotton a s a portfol i o going forwar d looks v e ry encour a ging. An d the othe r hand, no n -cotton segme n t, we have already witnessed a g ood grow t h this yea r . Going forwar d , even wit h this high b ase, we ca n easily im p rove with t he 12% to 15% growth in t his non-co t ton segme n t also.

Saania Jain:

• Okay. Got it. A n d what is the plan for the ca s h generat e d from operati o ns?

• Mithun Chand: As of n ow, we d o n't have m uch plans. We need t o discuss a nd then come b ack once w e have a concrete pl a n. As of n o w, we'll k e ep cash with u s . This ti m e, we ha v e seen b e cause we have built up the invent o ry, most o f the cash is getting de p loyed ther e . Once we h ave the real ca s h, then we' l l have a st r ategy and w e'll let yo u know.

• Moderator: We'll t ake our n e xt questi o n from the line of Dhruv Sa r af from Bowhe a d India Fu n d.

• Dhruv Saraf: Just w a nted to kn o w about t h e cotton p rice hike t h e govern m ent has annou n ced a 4% price hike t h is year. So is that co m mensurate with the cost in c reases that you've see n in the pr o duction of cotton? Or how do you se e this situation?

• Mithun Chand: Yes. T h is time, w e have seen a huge inc r ease in the cost of pr o duction. The go v ernment has increase d only by 4%, but there's a lot of p ressure in ter m s of the c o st of pro d uction, no t only in c o tton, but a ll other crops, w e have se e n a sharp r i se in the p r oduction c o st. And w h ereas in the oth e r crops, w e might be a ble to pass it on to the farmer.

But in c otton, eve n though t h e prices h a ve increas e d by 4%, i t will be really d ifficult for us to pass it on beca u se there's a lot of inv e ntory in the sys t em. We m ight be ab l e to realize good fig u re in ter m s of the new h y brids, but i n the old h ybrid, it m ay be a lit t le bit diffi c ult. But we are trying to p u sh the rea l ization so t hat we ca n pass some cost to the far m er. But on l y in the se a son we ge t to know.

P age 5 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Dhruv Saraf: Sir, fol l ow-up question, if yo u may allo w . What w a s your R& D spend as a pe r centage o f sales this y ear? And h ow is it li k ely to be i n 2026? And se c ond one...

• Mithun Chand: Overal l , growth, y e s, sorry. G o ahead, s o rry.

• Dhruv Saraf: And si r , second q uestion w a s that you mentioned that inven t ory has gone u p because w e're keepi n g some b u ffer. I coul d not reall y exactly hear w h y this buf fe r. And is t h is structur a l like you w ould wan t to keep going f orward hi g her inve n tory as a buffer be c ause you had the experience last ye a r of non-a v ailability o f seed stan d ing. So is that one should assume th a t inventor y now, gen e rally spea k ing, will b e higher than w h at it used t o be in the p ast as a pe r centage o f revenues?

Mithun Chand: Sorry. W hat was t h e last one ?

• Dhruv Saraf: Should we expect that invent o ry going f o rward like this year s h ould on a struc t ural basis, n ot like on e -off basis, should be h igher as c o mpared to it us e d to be in the past as a percenta g e of sales , as a perce n tage of cost of production because y o u want to k eep some b uffer?

• Mithun Chand: In ter m s of the R & D cost, th e recurring e xpenditure was close t o 6.5%. And if you add th e fixed exp e nses altog e ther, it was in betwe e n 8% to 9% of our total s ales. And in terms of the inve n tory, we h ave the intenti o n to strate g ically buil d up the inv e ntory.

We wi l l have so m e sort of a buffer st o ck as in s o me marke t s as the produc t ion comes in very lat e in the firs t quarter o r the last h a lf of the last qu a rter of th e financial year. So w e are no t missing o n some market s .

So we want to b u ild-up tho s e invento r y levels. A nd going f orward, there m ay not be a sudden i n crease tha n what we h ave seen t his year may n o t be ther e going fo r ward, but the inven t ory levels will be slightl y usually hi g her than t h e previous y ears.

P age 6 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Moderator: The ne x t question is from th e line of A a bhas Ver m a from Ea s t Green Adviso r s.

• Aabhas Verma: Yes. S i r, I had a q uestion re g arding yo u r revenue g rowth gui d ance of 10% to 12% for t h e next 2 y e ars that y o u had give n earlier. S o in one of you r earlier co n calls, you had mentioned that th e cotton po r tfolio is expect e d to grow at around 1 5%, 20% a nd the no n -cotton po r tfolio at around 15%, plus, negative 2 % thing. S o given th a t, could yo u please help m e reconcile how this tr a nslates into a lower c onsolidate d growth guidan c e of 10% t o 12%? So am I missing something there? O r if you can.

• Mithun Chand: We we r e a bit co n servative i n giving t h e guidanc e , but by seeing the portfol i o, it shoul d be plus 15% non-cotton segment with a b ig base, 15% p l us or nega t ive 2%, th a t will con t inue. And c otton wit h a small base w i ll grow thi s year. But w hen I gav e guidance o f like 10 % to 12% it is for the next 3 t o 5 years, n ot for the y ear.

• Aabhas Verma: So do y ou still m a intain that 10% to 12 % or we ca n expect something higher t han that al s o? Like is i t conserva t ive?

• Mithun Chand: That's t he minimu m what we see. It sho u ld be bette r than that. Aabhas Verma: Okay. A nd just o n e more qu e stion. So w hen you a r e getting t h is 10% to 12 % , does tha t include t h e export g u idance of RS. 160 c rores as well? O r like have you factor e d in ahead of them?

• Mithun Chand: Export like, expor t variance of... Aabhas Verma: I mean export gui d ance in yo u r earlier c o n calls, you had give n around RS. 16 0 crores so m ething.

• Mithun Chand: No, w h at I meant i s that in th e earlier ca l l, I gave a g uidance t h at in the next 5 years, the e xport mar k et can be R S. 150 cr o res. And e ven the same ti m e, I've gi v en the gui d ance of ve g etables to b e close to RS. 150 crores.

P age 7 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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Aabhas Verma: All rig h t. So 10%, 12% is i n cluding everything y o u have fa c tored in everyt h ing into th a t, right?

Mithun Chand: Yes.

• Moderator: The ne x t question is from th e line of K r ushi Pare k h from Bu g leRock PMS.

• Krushi Parekh: Yes, h i. Krushi Parekh fr o m Bugle R ock PM S . I just w ant to unders t and -- so we have t his 40% j u mp in th e inventor y , and I unders t and there i s buffer als o . So one t h ing is that, what prop o rtion of this ca n be constr u ed as buff e r? And w h at is somet h ing that w e would expect t o be sold i n this finan c ial year it s elf? And a l so, can yo u give us some u nderstandi n g on the m ix in ter m s of cotto n , non-cott o n in the overall inventory, n ew produ c ts, old pro d ucts, some t hing like t h at?

• Mithun Chand: So we h ave increased the inv e ntory across all crops. It's not specific to one cr o p. We ha v e increase d the inven t ory in cot t on and no n -cotton segme n ts also. Th e re will be close to 2 0 % to 25% of the inventory as buffer s tock acros s all crops, l eaving so m e varieties.

• We ha v e produce d some vari e ties, I me a n, moving hybrids, w hich are in larg e segment, w e have pr o duced mor e because w e can alwa y s use it for the next year, wherein t h e discoun t s will be v ery low. I n those crops, w e have i n creased o u r inventor i es signific a ntly high. And in terms o f the cott o n also, th e inventory is like las t year, it w as very minim a l. Now thi s time, it w ill be like c lose to 6 m illion to 7 million packet s .

• Krushi Parekh: Okay. S o, Mithu n , sir, if y o u can just give some understan d ing on, what is the propo r tion of the new produ c ts that we have in th e market now? A nd how ar e we appro a ching it ag a inst the co m petition? B ecause I belie v e last qu a rter, you had menti o ned that w e don't h ave the produc t s in terms of the yiel d s and ever y thing are p retty muc h similar to the c ompetition also. But t h en how a r e we appr o aching to g row our

P age 8 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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produc t s versus t h at of competition? A n d how are we lookin g to take on the c ompetitio n this year?

• Mithun Chand: It will b e a bit dif f icult to ex p lain about each mark e t and each product we are doing, but I can give y ou a guid a nce for like in the ne x t 3 to 5 years, m ore than 5 0% of the revenue w ill be cont r ibuted by the new produc t s, new pr o ducts in the sense, w h ich are al r eady placed in the market , which ar e already l a unched in t he market for the last 1 or 2 years a n d also the n ewly to b e launched p roducts. T h ese will c o ntribute to mor e than 50% of our reve n ue.

• Krushi Parekh: Okay. B ut any s e nse in ter m s of -- b e cause ho w are our p roducts differe n tiated ver s us that of competition that we' l l be expe c ting the pick-u p in the mar k et and gra b some ma r ket share?

• Mithun Chand: So the r e are so m any varian t s to do th a t. Basicall y , at the end of the day, it all boils d o wn to yiel d , but how you would arrive to y ield is a differe n t way. O n e is by li k e stress c ondition, t he hybrid need to perfor m , one like low pest, l ow diseas e s. So diff e rent crop m aturity date. S o different c rops have g ot differe n t paramete r s to look o n .

• So wh e n we see a competitor in hybrid or when w e want to increase the ma r ket share i n hybrid, w e see that i n the given p articular c o ndition how m uch does o ur hybrid need to d o give be t ter yield t han the existin g one alon g with mak i ng sure th a t the mai n tenance s h ould be low. T h ese are the 2 factors w hat we see.

• Krushi Parekh: Okay. And then we go o n to educ a ting the f armers about our differe n tiation?

• Mithun Chand: Yes, d e finitely. S e e, when w e launch a hybrid, it s hould be t ested in the far m ers' field only. Tha t 's how we also creat e a progra m me for buildin g awarene s s among f a rmers and show the difference b etween our hy b rid and t h e competi t or hybrid. That's ho w we incr e ase the awaren e ss and we create dem a nd for tha t .

P age 9 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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• Krushi Parekh: Okay. So typicall y , this wo u ld be 1 t o 2-year c y cle and then third year…

• Mithun Chand: Yes, in i tially, onc e you launc h the hybri d -- once you launch the hybrid based o n the base, it will tak e 1 to 3 ye a rs because we need t o market in different areas. So as 2 to 3 years is t h e right tim e where yo u get the good v i sibility. Fi r st year wil l be very s m all.

• Krushi Parekh: Okay. And sorry, if I ma y just con t inue on t h is questio n , what propor t ion of our c urrent pro d ucts is so m ething that is field te s ted and new in the given year?

• Mithun Chand: Sorry, w hat is fiel d ... Krushi Parekh: What proportion of our inven t ory curren t ly is new a nd is alrea d y tested over la s t 1 to 2 ye a rs across g e ographies ?

• Mithun Chand: C lose t o more th a n 95% of the invent o ry is the p roducts w h ich are movin g hybrids, because wh e n we launch a hybrid t he quantit y will be very m inimum. O nce we s e e the per f ormance, t hen only will we increas e the inve n tory. So t h at's what I said in th e earlier ca l l in the earlier way, that t he invent o ry what w e have no w , majorit y of the invent o ry is from the movin g hybrids, w hich are a lready app r oved in the ma r ket.

• Moderator: The ne x t question is from the line of Yashovardhan from Tiger Assets. Yashovardhan: Sir, wa n ted to und e rstand, w h at is the gr o ss margin s ustainabili t y going ahead?

• Mithun Chand: The m a rgins shou l d sustain. T he margi n s this yea r was close to 46% to 47 % . That should remai n same in like 1% to 2% plus o r minus becaus e of this y e ar, we hav e high inv e ntory cost. And in co t ton, we may n o t pass on. T his year m i ght be slig h tly stresse d . But go i ng forwar d , there are p retty high chances that the gros s margin should go further u p as we w isll be incr e asing in v e getables a n d other

P age 10 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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crops. B ajra, whi c h we alre a dy have h igh gross margins. A gain, it should go up. Th i s year, sli g htly we n e ed to che c k only be c ause of cotton.

• Yashovardhan: Unders t ood, sir. A nd sir, so o n the inve n tory front , how muc h are we expecti n g to be utilized in Q1?

• Mithun Chand: Basica l ly, if you s ee the tre n d like 70 % of our re v enue com e s in the first qu a rter, right ? It's easy t o take like f irst quarter and secon d quarter becaus e there mig h t be some spillover s ales based on the mo n soon or aware o f the monsoon. So fir s t half cont r ibutes like 70% to 80 % of our revenu e . That will continue g o ing forwa r d.

• Yashovardhan: So firs t half in H1 , right?

• Mithun Chand: Yes, H1. And even in H1, t h e Q1 cont r ibutes a lo t . But as I s aid that there m ight be so m e spillove r sales, wh i ch we placed in the m arket in the fir s t quarter i t self, but s ometimes we recogn i ze the sal e in Q2 becaus e if it is not liquidated, we don't r e cognize it a s sale.

• Yashovardhan: Unders t ood, sir. S i r, lastly, y o u've alread y spoken a b out the m o nsoon, I just w a nted to un d erstand if y ou can el a borate a b i t on how t h e good monso o n will ben e fit us?

• Mithun Chand: Good m onsoon in the sense t hat if you g et a rainf a ll in time a nd it's a widesp r ead rain a c ross count r y, then th e season wi l l be as ant i cipated. Other w ise, there m ight be a chance i n the crop shifting th a t might impact sales to so m e extent. B ut as a co m pany, we a re there in most of the cro p s. When c o mpared to other com p anies, we h ave a minimal risk in that. The risk is very mini m al for us b ecause we are already there in most o f the crops.

• Moderator: The n e xt follow- u p questio n is from t h e line of Dhruv Sa r af from Bowhe a d India Fu n d.

• Dhruv Saraf: Mithu n , sir, just w anted to u n derstand s ome color on the Ba n gladesh busine s s. So we'v e seen a big drop in ex p orts this y e ar. So do you think

P age 11 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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that bu s iness is go n e for the n ext 1 or 2 y ears? Or d o you see i t coming back?

• Mithun Chand: It will c ome back. This year i s a hit wh a t we have t aken. But t h at's the reason I said that it's not onl y Bangladesh, which i s coming u p in the next 1 t o 3 years. T here are m any other countries w e have ad d ed upon like w e are there i n Africa a n d the Sou t heast Asia n countries . So, the consoli d ated rate w ill go to RS. 150 cror e s in the ne x t 5 years. A nd this year, w e'll definit e ly see gr o wth in these segmen t s. Bangladesh will also pi c k up.

• Dhruv Saraf: Sir, thi s year itsel f, we'll see B angladesh coming ba c k?

• Mithun Chand: Yes, y e s. We can see that B a ngladesh i s coming b ack. No, l a st time, there w ere a coup l e of reaso n s. One wa s political issue. Seco n d, there was lo t of invento r y in the m arket in last year in B angladesh markets becaus e before th a t, the sea s on was no t that great. Now mo s t of the invent o ries are do w n, the iss u e is also sorted out. A nd I thin k we can get ba c k to the e a rlier sales we had in Banglades h . And in f act, we have b e tter plans i n Banglade s h going fo r ward.

• Moderator: The ne x t question is from the line of Jee t Jhaveri fr o m Moneybee. Jeet Jhaveri: Acreag e , as you m entioned t h at we expect the cot t on acreag e s to fall this ye a r. So wh y is that? A nd why a r e we foc u sing on th e cotton portfol i o going fo r ward in t h is year at l east, if yo u 're saying that the acreag e s are fallin g . So I just w ant to get some mor e color on t h at?

• Mithun Chand: As a c r op, cotton is not that lucrative w hen comp a red to other crops like m a ize. The MSPs of mai z e and the c urrent ma r ket rate of m aize is also pr e tty good. So people are slightl y inclined t owards m a ize this year. A nd whereas cotton, t h is crop sh i ft is very n atural in t erms of agricul t ure, where i n some cr o ps will do w ell and so m e crops will fall.

• But co t ton as a cr o p, we can' t neglect it . And goin g forward, c otton is also ve r y good fo c us on it. A nd with th e decent ba s e that we a re right

P age 12 of 15

Kaveri S eed Compa ny Limited Ma y 20, 2025

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now, w e have go o d scope to increase m arket shar e . That's th e reason we are focusing o n cotton. A nd going f orward, o u r focus w i ll be on cotton a s well.

Moderator: The ne x t question is from the line of An u rag Jain, w ho is an In v estor.

• Anurag Jain: Basica l ly, the Tat a Group C o mpany, R a llis in its c onference call had mentio n ed that th e entire see d industry i s facing dis t ribution challenges related to process i ng of seed s , packing of seeds a n d sending seeds to the ma r ket. So is t his somet h ing that is affecting K averi Seed s also in the cur r ent season ?

• Mithun Chand: Not re a lly becaus e most of o ur faciliti e s are own e d by Kav e ri itself, and w e don't hir e much of facilities f rom outsi d e. It's all in-build faciliti e s. We hav e faced thi s challenge earlier. T h at's the re a son the strateg y move wi l l be to do everything in-house, and we ar e having that in - house pro c essing faci l ity as of n ow. And f o r us, we d on't see much o f a challen g e. It's not a major ch a llenge for u s to fully i ntegrate all our p rocesses t o in-house.

Anurag Jain:

• Okay, s ir. And si r , how is K averi pla c ed in ter m s of capacities for proces s ing seeds a nd packing seeds for t h e next 2, 3 years? W e already have t h e capacity to accou n t for the g rowth for next 2, 3 y ears or Kaveri will need to do some capex to e n hance cap a city for pr o cessing and pa c king?

Mithun Chand:

• Yes, at present, if you see in India, we h ave got on e of the lar g est and the hig h est processing facilit i es that we have right now, both i n terms of the p rocessing f acilities, i n terms of t h e wareho u ses, in ter m s of the cold st o rages. W e have one of the hig h est capaci t ies and pr o cessing faciliti e s.

As of n ow, for t h e anticipat e d growth, we alread y have pla n ned for whatev e r new cap a cities or n e w lines th a t we have b uilt. We also made sure to have mad e it compa t ible to ad d more cap a city on to it. And that's a continuous activity to increase th e facilities. But going f orward,

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Kaveri S eed Compa ny Limited Ma y 20, 2025

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• RS. 2 0 crores to RS. 30 c r ores per a nnum will be the c a pex for mainte n ance and a ddition of n ew plants.

• Moderator: We'll t a ke our ne x t question f rom the li n e of Niles h Doshi fro m Green Lanter n Capital.

• Nilesh Doshi: Yes. W hat was th e cotton see d sale last y ear, Mithu n ? Mithun Chand: It was a round 3.6 m illion pac k ets. Nilesh Doshi: And y o u mention e d in one o f the answ e rs that the i nventory y ou have created is 6 millio n to 7 milli o n packets?

• Mithun Chand: Yes, c o rrect. Nilesh Doshi: Yes. S e cond is, c a n you just t ell me the i nventory o f finished g oods as of 31st March as a housekeeping?

• Mithun Chand: I don't have the e xact figur e right no w , but what e ver is the r e, apart from t h e biologic a l assets, w h ich are sh o wn in the balance sh e et as of now, a p art from e v erything i s like stoc k , which is a lready the r e in the plants. There are different w ays to m a ke it finis h ed ready t o go to market only whe n we try to send it to the market . Otherwis e , it's all stored i n bulk see d at a differ e nt levels.

• Nilesh Doshi: And h o w much w o uld be bio l ogical asse t s as of end of March? Mithun Chand: It's lik e RS. 200 c rores. Exa c tly, I don't have the figure right on the present a tion, but i t 's like RS. 2 00-odd cr o res of it.

• Nilesh Doshi: I'll tak e it offline. Mithun Chand: I'll get b ack to yo u regarding t hat one. Moderator: The n e xt follow- u p questio n is from t h e line of Dhruv Sa r af from Bowhe a d India Fu n d.

• Dhruv Saraf: Mithu n sir, just o n e clarificat i on on the b alance sheet. We see a CWIP of arou n d RS. 90- o dd crores. This is des p ite all co m missions...

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Kaveri S eed Compa ny Limited Ma y 20, 2025

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Mithun Chand: Sorry?

Dhruv Saraf: This is, CWIP of R S. 90 cror e s on Marc h in the bal a nce sheet …

Mithun Chand: I'm mi s sing you. W hat you're saying, 90 ?

• Dhruv Saraf: I'm tal k ing about t he capital w ork in pr o gress, sir, that is ther e on the balanc e sheet as o f March o f RS. 89 crores. So w h at does the CWIP pertain to because you've alre a dy commi s sioned the biotech ce n ter?

• Mithun Chand: No. O n e is we h ave set u p new offi c e space n o w that is already commi s sioned. S o me part is left out a n d some g o es down fo r some R&D c entres that we are building up. T hat is in t he capital work in progre s s.

• Dhruv Saraf: Okay. So that is over and a bove the b iotech ce n ter you've already commi s sioned?

• Mithun Chand: No, bi o tech is als o part of it. Biotech, w e have not commissi o ned yet. It's in t h e process.

• Moderator: Ladies and gentl e men, this was our l ast questi o n. Thank you for joining the call. F o r any othe r informati o n, please be in touch w ith Mr. Rama N aidu from Intellect P R on 992-0 2 0-9623.

On be h alf of K a veri Seed Company Limited, t h at conclu d es this confer e nce. Than k you for j o ining us, a nd you m ay now di s connect your li n es. Thank y ou.

P age 15 of 15