Kaveri Seed (NSE:KSCL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Kaveri Seed Company's q one FY twenty seven 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, mister, 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. I would now like to hand over the call to mister. Thank you, and over to you, sir. Thank you. Good afternoon. Welcome everyone to our conference... Quarter one financial year twenty seven earnings conference call.

0:51 We hope you have had a chance to review the presentation of our results, which is also available on our website. I would touch upon the operational financial operations of the company and then open the floor for q and a session. Revenue from operation was at $81.05 crore as compared to $9.45 crore. EBITDA was at $2.85 crore as compared to $3.32 crore. Operating margin stayed at about 35%, the same level as last year's ITMO. Net profit were at $2.71.3 crores as compared to INR 316 crores. The cash on book stands at $2.67 crores. Coming to segment wise revenue breakup, non quarter revenue was 601.57 crores, and cotton revenue was at $2.13.434.

1:47 Cotton stayed as the level of last year. Major highlights, Alina brought a big monsoon, and quarter one had one of the shortest sowing windows of recent seasons with less rain through the quarter. The farmers bought a a fewer premium and high value products. Our new cotton product did very well. They now make to up 4037% of our cotton sales against 22% last year. This is a big jump in single year, and and it shows the farmers are choosing our newer hybrids despite challenging from illegal cotton and reduced sowing.

2:34 Our new single crop male hybrids are doing well. They now make up more than 20% of our maize sales. A bigger share of maize now comes from newer and better products, which gives a stronger base to grow from once once May swing returns to normal. May was slow this quarter because of the deficiency in the rain. Karnataka is our main main market and only about Only about a fifth of the land has been sown by mid June. Rain returned in July, and we we expect May's demand to pick up in quarter two financial year twenty seven. We launched two new habits products, seven three double four and seven double two seven in their very first season. They bought in 62% of our new product sales. This is a strong start for our new rice products. Our export business grew close to four times from 1.1 crore to 5.79 crore. Demand from overseas markets is clearly building, and this is an area we will keep pushing on.

3:59 Operational highlights. Operating margins held steady at about 35% through the quarter. In Cordon, the company has built a strong base in the northern markets of Haryana, Punjab and Rajasthan. Hybrid drive stayed, our largest noncoding segment at $2.47.07 crore in a quarter which... When rice growing area in the country was lower. Selection rice revenue grew marginally to $1.59.07 crore, holding up despite poor rain in the rice throwing areas. New Bajra hybrids now make up 65% of the Bajra volumes, up from 61% with volumes sustained through the season. Vegetable seed revenue was at 15.08 crores with few new varieties going into the coming season.

4:45 If rainfall improves during quarter two, finally, we expect some spillover 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. 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 1 on their touch tone phone. If you wish to remove yourself from the question queue, you may press star and 2. 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 1.

5:42 Your first question comes from the line of Ruchab Shah with Bugle Rock PMS. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity. So, sir, if I see your numbers in the last ten, eleven years Sorry. Sorry. Can you be a bit louder? Yeah. So if I see your financials in the last ten, eleven years, we have reached a profit of around 300 crores in 2015. And after that, we were we were building a noncotton business, our vegetable business, and which we have grown to a significant size. But still, we are not able to cross at the profit in the last years. Is it because, like, we couldn't get any hit hybrids like MoneyMaker or ATM? I mean, what kind of challenges we are facing?

6:29 And, like, what do you think we can achieve in the next, let's say, three to five years? Rightly observed, if you see from twenty fourteen, fifteen, the profit remained INR 300 crores in most of the years. And but if you see the product mix, wherein the cotton was contributing around 80% in twenty fourteen, fifteen and the margins were pretty high there. You're coming back to this current season, if you see the mix has changed, wherein cotton only contributed close to 2080% in non cotton segment. And and even quarter margins seem too much lower than what we used to have, even though we are able to maintain those margins at a 35% EBITDA for the first quarter. And leaving apart this year, we we we... If you see in the last years, we are growing in noncotton segment, and we were declining cotton. But by seeing the current season, which is a very challenging season for us, where across this is the first time where we are seeing this type of season where across India, we are seeing monsoon definite definite until June 15, which has disrupted the the cropping patterns and the pharma choices.

7:41 So that's making an impact. It's one of the year where we should not take into consideration. But coming back to you to see the portfolio levels, if you do the other levels, even in this tough conditions, we were able to do well. And with the products what we have and with the research what we have what we have spent in the last three years and the habits which were developed, the research are doing very well, and they're very encouraging. This is just one off in here, and this should not be a benchmark for the performance. Okay. My second question is, we have entered into the export market for quite some time. So and we have grown in that area also. So I mean, what are we facing any challenges in those regions? Because in one of the calls, I remember you said that gaining farmers trust even in India, we are an Indian company, which took so long. So are we facing such kind of challenges in the export market?

8:39 And second part of the question is in exports, maize and rice are too big crops. And we have talked about Philippines, Vietnam, our talent to grow our export business. We have sent some samples for trial. We got good results. And it could be like around like INR 100 crore revenue in the few years. So what's happening on that front? If you could just let us know. We are growing in vegetables. We are growing in export market, and the conditions here and there remains almost same. I mean I mean to say that in them, the farmers choices, they will see the performance and then only they will adapt it. In few countries, we need to give trialing as well. So that trialing, are completed in Philippines, Vietnam, and Indonesia there.

9:24 So now we are sending material there. So we are getting good sale there, but still we stick to that growth in export market. Reaching 100 in vegetables shouldn't be a difficult time in the coming time. Okay. Okay. And sir, we have done a commendable job in the past years to build our noncotton portion of the business. And a question on the cotton business. As we know that this business does not have significantly lower margins than the noncotton business. And, to the heavy loss or focus on, let's say, we are we focusing less on this... We are giving less importance to this business. And because there are many factors like illegal seeds, capping off prices from the government, And you haven't come up with such new hybrids in the last many years in the cotton business.

10:16 So and just to add on the part, the last two years, we have seen we have huge inventory around 1,200 crores of inventory we have. So on that front, could you please let us know something? Coming back to the quarter end question first. Yes, quarter end, we have lost market share in the last seven, eight years. And we have... I'll just correct you. We have developed many hybrids in the past three, four years. And if you see the growth in Northern India, we have grown even though the... If you see the overall sale as a flattish one, but we are grown in Northern India in terms of... We almost, like, doubled it in Northern India in terms of with the base of... With a small base. But those are all new habits, and we are doing very well. When you come back...

11:01 When you come down to Gujarat and Maharashtra, the rainfalls are very low, scattered rainfall initially, and then the illegal BT. These all have impacted to some extent. As I said, that this is one of the year where we should not see... Where where we should not take as a benchmark. We are very confident with the new cotton hybrids. And even in the sale, you have seen the contribution of the cotton hybrid, new cotton hybrids. We are fairly confident that we'll go back to a 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 when we can't ignore cotton as such. Cotton is a very big market, and we are very strong in those markets. So we'll be 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 because of the alumina effect and the delayed rains, scattered rains here and then that has impacted the sale. But any of that's a part and parcel of the business, we'll we'll manage the inventory, and the inventory is pretty much stored properly.

12:13 And we'll be reducing our productions next year. So we'll we'll not take up the production what we have taken up this year. That's that's a continuous process. So we are monitoring it. Nobody as of now to maintain the inventory except for the holding time what we have. And so just to follow-up on the market share part, lost of market share in cotton. I think we had lost market share in So, Rasi is a market leader, like, over India. So just wanted to know, like, I mean, what is helping them to gain more market share? Is there is there better pharma connectivity? Or are they a better brand? Or just wanted to know. So, basically, if you see in the last four, five years, I don't think they have increased the market share. At the most, they are maintained or declined in terms of the market shares.

13:07 And the cotton market also slightly declined in the last three, four years. And the legal cotton has also gone up. A smaller price also coming up. So in terms, based on the heavy performance, the hybrids are doing well, and they are accepting. They are grown. But these are all old hybrids there. We have not seen any new hybrids that take any market share in the last three, four years. Okay. Thank you. I'll get back in the queue. Thank you. Your next question comes from the line of Disha Garg with Sanko Mutual Funds. Please go ahead. Yeah. Hi, sir. Good evening. Yeah. Sir, as the season was not that good, so have we also got hit on our margin, which was a... For a particular crop, which is compensated by other crops? So is there any Sorry? Crop where we Sorry?

14:00 Is there any crop where we got a low low margin versus last year? No. If you see if you see the margins, in fact, expanded even though the sale declined, The EBITDA margin was slightly expanded. If you see the other expenses, like 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 two to 3%. So in anticipation of a good season, we deployed many people across, and we couldn't sell as that, and that's... That has slightly impacted our margin, but we are... In fact, we we we have done more margin than last year if... For this season was good. Okay. Okay. Thank you.

14:51 Thank you. The next question comes from the line of Himanshu Upadhyay with Stedford. Please go ahead. Yeah. Hi. I had a question on subsidiaries. Okay? In one of the recent calls, we stated that our subsidiary also sell. If we have multiple hybrids, all launching all hybrids through Kaveri is not viable. So out of, like, the four, five hybrids that they have, one or two can go to subsidiary. But I could not understand why all cannot be sold through Kaveri, and why not choose best two, three high rates and put our entire efforts on... With focus behind doing them rather than diversifying our energy across multiple products and multiple places through subsidiaries or all that. So some That all on this will be helpful.

15:49 That all depends on the company's strategy, how they do it. For us for us, I should take Kaveri as such. Kaveri focus only on those hybrids. Even though subsidiaries are there, we are committed in the market. They operate as a different company. The team is different. All the efforts are different. 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 sale is booked in the subsidiaries are also are all independent sales. I could not understand, but 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 gets sold through the same company.

16:52 Why does this strategy is more helpful of what... I was selling through compare... Subsidiary and competing with our own subsidiaries. So some thoughts on this will be helpful. That is what I'm trying to understand. Of FMCGs and seed is altogether a different business. Because seed seed, the farmer only pick up by seeing the performance of the hybrid. And India has got many climatic conditions. Seeds have been performed differently in each segment. There are very few hybrids which are successful across all zones. So when we have v two hybrids, so we need to discard one hybrid and market only one hybrid. So 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.

17:47 We have sold an intended to a lakh package in in subsidiaries. So that's an... There I are other 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 meter hybrids, basically. When some hybrids perform differently in different segments, so they 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... That's what I was saying. Again, that depends on the strategy of the company. Okay.

18:32 Okay. And one more thing. And one more thing I'll just add on to that. Even in the Indian farmer, usually tries different products. You will not go for one go. For example, if you have 10 acres of land, even though it's very much, I would say, used to one hybrid, Even in that way, tries other three or four hybrids from different companies or other different... Other same company. And when we see the new cotton products or any, let's say, you know, new hybrids, so the new product would mean launched within three year, five year or... What is the duration or how Basically, three years. Okay. Okay. In last three years.

19:19 Okay. So whatever is launched in three years is... See new product. Okay. Yes. 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? And if they replace the older ones, okay, and I think they would be replacing. That's why their share is continuously increasing even when the... Our revenues in cotton and some have not increased. But how is the pricing and the profitability for these products or the newer products? Some thoughts on what the is capped. In in quarter, the MRP is capped.

20:08 But in terms of the realizations, we are almost, like, in the top three segments of the cottonseed where we realize higher than many other companies. Okay. And one more thing. With the later rains coming, do we see any hybrids which can... Which are... Or any change in the cropping pattern which might benefit for a shorter duration crops, let's say vegetables, which generally have a three month type of time frame. So any product or any place where we can manage For for us, vegetables are very smaller segment even though that might come this quarter. But in the very quarter, it's very small segment, which may not add up much for us. But but for us, Karnataka is a major state where still we are waiting for the rainfall, and now the tanks are full... Getting full now. But in that segment, in Karnataka, what we believe is that we are not lost in. It can come again in terms of maze.

21:16 So that that is a a positive point what we see is that we can get back Karnataka sale. Other part, 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 of the parts. They're leaving the southern part like Karnataka or Andhra, some parts of Telangana. But Northern India mid part, the tanks are fully... So in that way, that probably might be a bit encouraging this year. And if you see the maze price, the start of the season was only $16.17 rupees. Now the maize price is also around $27.28 rupees. So even most of the is comes from maize crop. So maize should pick up in the last second half.

22:07 Okay. Okay. And, Leia, it's in the exports last year. How much was to Bangladesh, and what is the outlook overall for the exports and especially to Bangladesh where you were making special efforts? I I don't have the exact speed per state as of now. But definitely from last year, we'll go at at least 25% compared to last year or... As overall exports. Okay. I'll join back in queue for further queries. Okay. Thank you. Your next question comes from the line of Dhruv Sarraf with Bowhead India Fund. Please go ahead. Q1 numbers, if I compare the fee revenues of other large companies such as Bayer, such as Advanta, there may see revenues almost grew by 20% plus, while we had a 40% decline.

23:02 So can you help me pin down why this big difference in performance? 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 than one of the impact what we have seen. And if you see last year, the 25% to 30% of sale came from Karnataka last year in terms of. Okay. Right, sir. So... But, you know, even we are, strong in areas like Madhya Pradesh as well where the grade has grown. So were we not able to perform well in those markets? What... Because those numbers are quite divergent. Masses for minus 40, them is plus 20. So I'm just trying to understand apart from There mixed there are mixed use in some pocket. For example, we have grown in Rajasthan.

23:52 We've grown in other parts of Northern India, but not in the state of Madhya Pradesh, Maharashtra, and Bihar. Especially in Maharashtra and Madhya Pradesh, are not able to do well. If you see the overall acreage, Madhya Pradesh is the one where we are seeing a huge increase in acreages. Yeah. That that we were not able to capture. That's the only area where we went down. But whereas if you take Maharashtra and other parts, it remains the same. 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 are not able to do that. So, sir, is it the problem that we don't have a product, let's say, in that for those geographies?

24:37 Or Yes. Yes. That that... That's the main reason. Okay. Okay. Understood, sir. Sir, secondly, you know, you spoke about the fact that rainfall has picked up in Karnataka and, you know, made the create, which was, like, down 15% at the start of July year on year. If you look at that cropping now, made the create is down only 4% year on year, you know, out of the latest government data. So do you expect to cover up a large part of your sales in q two and in q two? Basically, if you see Karnataka now, even now in some parts of Karnataka where the maze where the maze goes in, still Mhmm. The rains are not there. So... But the dams at Chungabadha are getting full now. So... And now this... In the last couple of days, the season, the maize seed is going up. So... But but in Karnataka, usually, they have a habit of sowing maize across the years during the entire year.

25:32 So whatever we have done last year in Karnataka, still we are confident that we'll do, but it will be in quarter two or three, I mean, just need to see. Sure. So, sir, now, you know, in terms of you ended one with a 14% sales decline. Yeah. I'll I'll just correct. The sale in Karnataka, we might able to recover, but the sale in other parts for the Karif that is already lost. But whatever we have done Yeah. From Karif in May, that we might recover in Karnataka. Great. So sir, if I then want to look at the full year for this FY 'twenty seven, you've ended Q1 with a 14% sales decline. Or 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? What's your view on that, sir? Definitely, the margin will be lower than what we have shown in the first quarter because we are expecting some below us here in the second year, second should be good because of the May's prices.

26:26 It should it should narrow down to... But to what extent that we need to see. It should not it should not... Why why... It should not move up, but it definitely should be... The gap will narrow down. Understood, sir. Understood. Sir, just one last question on, sir. So you spoke about, you know, in our previous interaction, you spoke about that this year, there was an expectation that the illegal feed could come down. But the legal feed has again gone up this year. So do you see further threat or let's say, do you see this becoming a even bigger problem going ahead? And what are the reasons why, you know, the illegal heat went up while our expectation was that it would come down? Basically, it was because of monsoon. As the season gets prolonged and as the monsoon gets delayed, the farmer compromises on the seed.

27:12 If you see Northern India, which was earlier than the monsoon, we were able to do well. Mhmm. But whereas in states like Gujarat, Maharashtra, these are impacted a lot, especially Gujarat are impacted a lot this year. Okay. Okay. Sure. All right, sir. I'll get back in with you. Thank you. Thank you. The next question comes from the line of Karan Talwar with DAM Capital. Please go ahead. Yes. Hi, sir. Can you hear me? Yes. Yes. Hi, sir. Sir, thank you for taking my question. So just two from my end. So firstly, you highlighted that there's a chance that, you know, we may recover sales in Karnataka. If you could just quantify how much we've done last year, which is how much you've done till now so that we can just have a sense on what is the scope of recovery, please? That's number one. Last time in the, we had done close to 2,600 tons in Karnataka.

28:10 This year, the... We have only done 1,500 tons in Karnataka. So we are down there on 1,100 to 200 tons only in Karnataka. And you're confident that we of sale. I'm sorry? Which is close to 40 to 50... 40 to 60 crores of sale. And we remain fairly confident that we may get a chance that you may still be able to recover As of now, we are pretty confident because we don't see any alternate coming there. Understood, sir. So secondly, while you've 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? As I said, I just answered an earlier question.

28:58 If... For the rest of three quarters, it should not come down because as we see the Karnataka sale coming in this... In the next three quarters, and should be well because of the maze prices and because majority of the contributor remains in the second half in the next three quarters. So, definitely, the sale will be higher than the last year three quarters, and the and the and the sale revenue and the revenues will narrow down from this level. But to what extent it will cover, that we'll see. Right. So so just one last from my end. Sir, any new hybrids or any performances of... Or any field trials that you've been doing across that you'd like to highlight? 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 crops.

29:51 So we are very bullish in the start of the year. We thought all the hybrids will do well, but, unfortunately, unfortunately, the season has not come up as anticipated. But, okay, that's fine. We are in a business where we are prone to these type of. That's fine. This one one off a year at us here. 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 longer term... Mid or longer term period. Right, sir. So any color on how our product pipeline is also shaping up? It's it's excellent when you compare the product pipeline. If you come... If you see in the last eight, ten years, the line... Product line, what we have right now is one of the best in the last ten years.

30:36 But, unfortunately, that is not turning up in the sales. There are various seasons, might be season for something else. But, definitely, that will definitely come up. And in the next two or three years, that will definitely reflect in the revenues as well. Right. Got it. Thank you so much, and wish you all the best. Thank you. Our Our next question comes from the line of Viraj Kacharya with SIMPL. Please go ahead. Yeah. Hi. Am I audible? Yeah. 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.

31:25 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 category improving further? Or was there an element of price increases? So I mean, you look at it two, three years back, we have seen a very material increase in cost of production for Seed. So is it normalization of that? Or is it share of new products increasing? Any color you can give? Rightly observed. In fact, the... If you recollect last call also, we said that the cost of production is lower than compared to previous year.

32:10 So that has added up. In fact, the realizations have... Most of the crops are down than compared to last year. Okay. But if you still compare to the We had an advantage 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 two to 3% compared to last year. Even though we are... We realized lower at the dealer side. What what do mean by we have an advantage in cost of production? 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 two to 3% compared to last year.

32:58 And the cost of production, even if this is a lower realized rate, the cost of production is lower than last year. I mean, they said the cost of production is four to 5% lower than last year, and the realizations are two to 3%. You... Even in that stage, we are able to maintain that 3% growth in terms of the cost of production. Right. And do you see further I don't know whether you... I was able to communicate it properly to know you or not, but the realizations were lower by two to 3% than last year. No, I got that. But do see from the channel. Okay. But do you see scope for further normalization in cost of production? So compared to, say, '25, please, do you see a scope of further normalization in the cost of production? Not just for us, but everyone in the industry?

33:49 Yeah. It's it's it's it's it's 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 we'll... The production is very minimal for the next year. So the cost of production, what we incurred last year should be more or less same for the next year. Okay. Okay. Second question is, see, if you look at the 2020, you know, we had a guide of... And put a little towards. So we had some good success in May and May. But there was, you know, quite volatility in sustaining the sales because the regional contribution was quite, high among few Southern states, say for me and same for rice for us.

34:42 Now if you look at the current year, even in 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? So 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, may rise, how do you see that evolving? If you see, we are not regionally concentrated. If you see cotton cotton is in different states. Maybe they're in different states. Sunflower is in different states. Rice is in different states. So we are across India, but the only issue is that India is a vast country.

35:29 We need to have a suitable hybrid for those segments. In Karif, we are very strong in Karnataka, Andhra, and Telangana. In Ravi, we are strong in Bihar, UP, and some parts of Maharashtra. Madhya Pradesh, we are slightly weak. That hybrid, we need to launch it, and we have hybrids in Madhya Pradesh also, but but we are... We are all pretty new, so we couldn't do that. That's one of the reason. But if you take other crops, if you take rice, even in these tough conditions, we're able to grow in rice with a with a big market share. We are one of the largest player in rice. Okay. Okay. Got it. And similarly, in terms of, say, maize or rice, you know, especially maize, if I look at on an annual basis, you know, last year, we did something like 400 crores of sales.

36:24 How would the product portfolio be distributed, say, Kariv, Ravi and Spring? Last year, we have introduced some home products in Spring. Earlier, we were not that big in Spring. Yeah. The the good in in SpringCon. 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 Ravi, we are strong in other states. And now the hybrids are... The pipeline hybrids are there. We are considering both Kharif and Ravi. Most of them are single class hybrids, and we'll be catering to all the markets in India now. But most of the are new. It need to be just get more visibility at the farmer's level. That's the reason it it will take some time.

37:11 But in terms... Otherwise, in terms of the portfolio, in terms of the pipeline, in terms of their performance, we are pretty much bullish. Okay. Thank you. Thank you. Your next question comes from the line of Praveen Pothinuru, an individual investor. Please go ahead. Hello. Can you hear me? Yeah. 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 end of quarter two? And about how much cash also we are going to expect the buyback, if there is any?

38:02 So one thing, we have a cash of close to INR $2.65 INR $2.70 crores out of June 30. By the next second quarter under, there may not be a much significant cash increase, maybe $20.30 crores plus, close to 300 crores, not much. But coming back to buyback, that's again a good decision. We'll see whether the... If the board recommends we'll do and what what amount they decide that we'll let you know once it's finalized in the board. Yeah. That answers my question. Thank you. So my second question, for the last ten years or so, we didn't see much growth in sales profit.

38:47 You know, it's close to inflation only. And how do we see our future, let's say, next five years or ten years? And what would be the driver? So I'll I'll answer this question in the start of the call itself, but anyway, I'll answer once again. I said that the... From the last ten years, it looks like we remain same there in terms of the revenues and profitability. But the product mix has changed, and the margins in the quarter now stand by more than 15 to 20%. Like, earlier, was 75% in terms of the EBITDA. Now right now, it's only 15% in terms of EBITDA. Even in the tough conditions, we're able to shift our focus to noncotton crops, and we were able to manage the margins. Going forward, we see growth in both the segments, cotton and noncotton segments, as we have very good hybrids in the pipeline.

39:41 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'll we are confident that we can deliver both revenue growth and profitability. And what would be the contribution from exports look like? In the next three years, we spent five years. In the last three years, we said that five years will reach 100 crores. But in the next three years, we'll reach 100 crores. Both in terms of vegetables and Would it it be margin accretive? Margin Would that be margin accretive? It will be in line with what we get now. It should be in between that 25% to 30%.

40:30 Okay. Thank you very much. Thank you. The next question comes from the line of Dhruv Sarra with Powerhead India Fund. Please go ahead. Mitun, sir, if I look at the presentation, you spoke about two new products in hybrid RISE, which almost were, like, 53% of your sales. 52% of your sales. KRH $7.03 double four and KRH 7 double two seven. Of the sales in the new products, new product contribution. Yes. So out of the INR $2.47 crores of hybrid rise, 53% came from 62% came from new sales, new products, right? That's what it means. Sorry.

41:33 This is this is only for the new products, 62% hybrid drives. Yeah. Yeah. Contributor one, this is only for the new products, not for the entire portfolio. 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. Is that what it's... So not that case. Right? So fair. No. No. No. So what would be the contribution from these products? Would it be, like, 10, 20%, 30%? It should be below 20%, 20, 25%. I'll give you the exact number, but majority of that is previous four hybrids. But there are new hybrids in different segments where we see a lot of potential in that. Okay. So sir, are the replacements for four sixty eight or are they like, you know In a different market also. They are all in a different markets. Most of the most of the new launches are in the different markets.

42:25 Sure. Alright, sir. Thank you. Our next question comes from the line of, an individual investor. Hello, sir. Earlier, were kind of using Sorry to interrupt., sir, your voice is very muffled. If I can request you to use the handset, please. Yeah. I'm using the handset. Can you hear me? Yeah. Yeah. This is slightly better. 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, going to have lost due to the weather condition. Other things, your target is on intact the coming years because of the leasing?

43:15 Yeah. We have been... Are that there is still we maintain that 18% to 20% going forward, 15% to 18% that's what we said. Still, even though this year is 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, the next two to three years, definitely, we'll be able to recover that. In the longer or mid or longer term, 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 of the year for us. Means that the next two, three, we'll continue to grow? Yeah. Yeah. Understand. The last year level? Yes. Yes. Yes. Okay. Thank you, sir.

44:02 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 Ramanaidoo from Intellect PR on (992) 020-9623. 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.