Kaveri Seed Company Ltd
NSE:KSCL
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
587.85
1 175.55
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Kaveri Seed Company Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to Kaveri Seed Company's Q4 FY '22 and Full Year FY '22 Earnings Conference Call. [Operator Instructions] Please note that this conference call will be recorded. Joining us today on this call is Mr. Mithun Chand, Executive Director.
Before we begin, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For a list of such considerations, please refer to the earnings presentation. I would now like to hand the call over to Mr. Mithun Chand. Over to you, sir.
Thank you. Good morning, and welcome, everyone, to our quarter 4 financial '22 and full year '22 earnings conference call. We hope you have had a chance to review the presentation of our release, which is also available on our website. I will touch upon the operational and financial performance of the company and then open floor for the question-and-answer.
The contribution from new agents is going at [ a healthy rate ] across rice, maize and vegetable segments. Our revenue and volumes during financial '22 were impacted due to supply chain disruptions on account of overall shutdown for the country in the first quarter of the year. This has led some low commodity prices and low confidence among our farming community.
The impact of the first quarter still shows an overall performance of the year. This has impacted both cotton and non-cotton crop sowing pattern during the current year. The revenue of cotton and maize were impacted and price and vetted performance of the company during the year was better than other segments. Besides that, we have lost some government business due to [ overall shutdown of the country ].
Having said that, company has outperformed the industry for seed segments, both on revenues and volumes. And volumes front in spite of prevailing non-conducive environment in the country. Currently, overall confidence among the farmer fraternity and general trade in the country has improved to either pre-covid levels or better than that. The demand driven increase in commodity prices across the world is also driving the sowing pattern of our farmers, and we have been witnessing good demand across cotton, rice, maize and vegetable seeds.
Revenues from operations for the quarter was at INR 54.56 crores as compared to INR 55.08 crores in quarter 4 '21. [ EBITDA ] quarter 4 was a negative of INR 7.1 crores compared to INR 7.7 crores. Net loss of quarter 4 '22 stood at INR 13.09 crores as compared to INR 14.3 crore. Revenue per operations was at INR 915 crores as compared to INR 986 crore in financial year '21. EBITDA was at INR 238.41 crores as compared to INR 334.89 crores in financial year '21. Profit after tax was at INR 208.9 crores as compared to INR 305.3 crores.
Cash on books stood at INR 468 crores. Cotton volumes decreased by 24% and revenue decreased by around 23%. Expecting cotton volumes to take a lead from this year and the demand would increase during the financial year -- during the quarter 1 of financial year '23 on account of prevailing cotton -- high cotton prices.
Hybrid rice volumes increased by 19.2% in financial year '22 and revenue by -- close to 30%. The new contribution of hybrid rice was up from 68% to 75%. During financial year '22, hybrid rice sales was not encouraging across the industry. But in spite of that, the company has grown its hybrid rice revenues by more than 40% and had gained market share. The prospects for hybrid rice growth during financial year '23 is better than financial year '22. Selection rice volumes grew by 6.26% in the financial year '22.
Maize volumes decreased by 16% and revenue by 7.69% in financial year '22. The contribution of new products in Maize was up from 10% to 24% of volumes. Vegetable sales volumes increased by 21% and revenue increased by 18%. The new contribution -- the contribution of new products in vegetables were up from 23% to 56% of volumes.
In terms of revenue growth is expected in vegetable seeds in financial year '23. Apart from the business operations, India is going to play a major role in [ cotton ] as a commodity in terms of production and integrating into value-added production of the world.
Launching 8 to 10 new products every year [ a core ] segment to drive the revenue growth. As part of rewarding our shareholders, the company has bought back shares worth of INR 120 crores during the year. The company has declared a total dividend of [ 200% on a face value of INR 2 ] per share during the current year.
Company's motorized to deliver consistent growth on both revenue and profitability, better margins, build sizable new products, invest in R&D to have new pipeline products speaking for breakthrough technologies in the market to utilize other strategy books on the company. Any major skin adoption of hybrid since May and in terms and increase in volume for the quarter we are going to drive the company will go to the company. Now I would like to open the floor for the question-and-answer session.
[Operator Instructions] Our first question is from the line of Nitin Awasthi with InCred Equity.
Two questions from my side. Firstly, the timing for the quarter fees out for this year? Is it out for this year? And what is the change over the last year?
The prices are up by around INR 40-odd compared to the previous year.
So even the selling price should be up by INR 30-odd for the company? Around INR 650 then? Last year it was around, INR 620, right?
Ladies and gentlemen, please stay connected as we have lost the connection for the management. [Technical Difficulty]
Ladies and gentlemen, we call Mr. Chand's line connected once again. Mr. Awasthi, you can proceed with your question.
Okay. So sir, I was asking last time around, the cost selling price for the company was around INR 620-odd saying of INR 40 rise. So is the company able to do retain INR 30 from that, it should be approximately at INR 650 per package this time around?
When compared to last year, the [ earlier prices ] are above INR 40, but we need to see how far we can realize from the biggest community. Last time, the sentiment was really bad. And we couldn't [ go for ] increasing the price as there was a lot of document of the brand to be. But compared to last year, what we see is that, one, the commodity prices are bad. The sentiment for the crop is also bad. The [ prices ] might go up in cotton and the legal Bt cotton may come down compared to last year.
But even in this scenario, we see that as the inventories are high in the industry, we see that we may not realize the actual increase in the prices, but we will try to see this on a situation basis, only we can have a clear idea whether we can realize that [ INR 40 or not ].
Okay. And sir, you've also pointed to the [ illegal cotton sales ]. Last time, it was [ managed ]. And wanted to understand how big is the [ manage ] this time around? Is the impact going to be as severe because the news reports saying that it's actually bigger than last year, the problem of illegal seeds.
What we see is that the illegal use of the [ cotton ] segment seed what we got [ DBTC ] not increase in last year, the initial sentiment or the initial [ feel ] that we get from the market to that. Last time, the farmers really suffered in terms of the low lease and the seed was really very bad in terms of the performance in [ compatible ] branded seeds. So as a sentiment, it's not as great as where it was earlier. Definitely, the usage will be there. It has given a [ mix gloom prorate it might go ]. But whatever we see the increase in the cotton acres that will only come from the branded seeds. That's what our initial feel. But at the end of the day, again, [ once we arising ] the right time, then the usage of organized players to organize seeding will definitely come up. If it gets related to sentiment was that then the initial for now. As of now, is that it will all come to [ the initial point ].
Understood. So your gross profit seems to be under stress in your non-cotton segment, which used to be predominantly more than 50% solely suddenly sliding down and is now closer to 45%. Are you taking price hikes because I don't believe the commodity prices which you -- raw materials that you use would have gone down in price. So are you taking equivalent amount of price hikes to cover on this gross profit loss?
Yes, if you see the profitability, if you see in the last 4, 5 years, non-cotton crops are more profitable than the cotton crops. And whatever increase in the commodity side or whatever in the production side, [ we tend to plateau to ] 0.5% of the [ peat ] value -- of the selling price. So that's not an issue in passing out to the farmers. But if you see the other side, the cotton revenues are down more than 20%. Actually, that has impacted the profitability of the company because even though it's not -- it doesn't contribute much to the bottom line as a crop.
But if you see as a whole, the other [ expenses ] get observed in the cotton sales that has impacted the profitability to some extent this year. And some nonreceipts of the government payments, but also which we have provided for the going for [ bandits a policy ] we are not able to report it in 2 years, we call it for that, that I also importantly profitability. Otherwise, compared to the pulp segment, non-cotton crops are more profitable. And to answer to your point, whatever increase in the price or whatever increase in prices, we can be pass it down to the farmer, and that's not an issue.
Okay. Got it, sir. Sir, February this year, there was a ruling by the Salina authority of advanced ruling. It seems that they're doing -- they said that GST is going to be implemented on seed sector because seed is different from grain and is not an agriculture produce. Could you shed some light on this ruling because if the ruling is true, wouldn't this mean that income tax would also start being levied on the agriculture sector, specifically on the seed sector because this ruling [ could set a predicament ] for the sale?
One thing that the [ ease of ] the individual company, that's not into the industry as such because the operations of that particular company which have applied for the clarification was different. And -- but it's not for the entire fleet second for the profit seats, which usually we take on a job work, for that they need to charge for that. But otherwise, as a company and an industry, we are not holding that and centralize the seeds are exempted on that NPS.
Understood. Sir, last question from my side. There was a ruling passed on [ Genting ] for how advantageous is this for the company and industry, if it is advantageous at all? Is it like bypassing the GMO regulation and now something can actually happen because [ Genting ] is something which was not allowed and now is allowed?
Definitely, that's a good sign for the industry, not in particular to one particular case. But what we need to see is that the government intention to get the new technologies. If you see the past 7, 8, 9 years, nothing is more -- again in terms of the [ ablation of the technology ] of getting later [ technology]. In the following year, we press in the last 6, 8 months, among the government accepted and the company's providing technology and the steel industry also. We are working proactively in terms of getting the new technologies in the country. What we have witnessed here is that in [ HTBT ] if you don't tend to new technologies, people get sourced for the million things and that's not beneficial for the farmers.
So the government is also understanding that and the technology core is also working in the government. What we see from the customer is that going forward, the government will be acting very fast in terms of getting the new technologies to contain the work in the advanced sales. So what we see is that we can definitely see the action, you can definitely see the new technologies that can be allowed in India.
Our next question is from the line of Sarvesh Gupta with Maximal Capital.
2, 3 questions. One is on the Maize side, we had a bad year. So I mean, the assumption that I was at least working with was that we should be able to, given the low penetration in the non-cotton side, we should be able to grow. So if you can shed some more light on the performance in the Maize segment. That's the first question.
So if you see the overall growth, overall performance of the year, as an industry, entireties, I mean, it has not grown. I've worked on it over the last year or in the first quarter and the last quarter in terms of the effect of the [indiscernible] second year. And the commodity prices really do. If you give a commodity price spot whether for maize and rice and the cotton or half of what is now during the first quarter, in the sentiment and the action of the farmer's intention to spend more on the fee or any other, it was a bit than in the first quarter.
So that has -- and that has impacted the actual growth of what we have received, but that's where the temporary this process and what we see now to retain the sentiment is that the headwinds will grow higher to what it has grown in the previous year. And there are many reports that we have received in India 10% to 12% for the next 15 years. So we are very quite bullish about the growth we have received. For more, even with the industry as that, we have done well in terms of the trade. We have only -- were down only in terms of the government business, as we have mentioned in both the current and our opening in -- and those who are not able to call for tenders and they were not able to the subsidies in some part of the -- some states and you are not able to participate in that.
So that has impacted sales to some extent. But otherwise, if you see the normal trade apart from the government trade in the 9-month and the revenues are also up. So what we see is that Maize will be a very good crop and we initiate element to you that the industry is. The new plan for the economy definitely tire for the last transaction and the cotton also is going up year-on-year. And not only for the even the human consumption is also going up in all 3 assets will further and human consumption, what we see maize as a very good crop. And definitely, the main production will increase going down the line. So maize will be a very good crop. We're very confident about the growth of the industry, and we will definitely offer on the growth of the investor because we launched many in hybrid. We have launched summer [ field crops ]. We are launching in food console. I mean it's a very lucrative part of the portfolio, and we still tend to work in this.
Okay. So the earlier guidance of 15% to 20% growth in the non-cotton side stays for sort of this year?
Yes, definitely. If you see, even if you take the non-cotton segment this year, growing 15-odd percent if you take on certain segments. And the contribution of oncoming 65% -- close to 65% from [ 5% ] to less than 30% or 4 years back. So that shows the growth of the non-cotton segment. And if you see high then the industry has a muted growth, we have grown by more than 25% in hybrid rice. So that shows [ spend on the products ] on the portfolio. And we then you have a lot of area to recall and the rice. So rice, [ maize ] and vegetables are 3 big crops, which can have [ anemic ] potential going forward and which can definitely grow. Cotton, we definitely have a chance to grow this. But it might remain sidewise on a longer term but a much short-term basis on the year -- in the coming year or also on next year.
Sir, what is the inventory that we are planning for cotton or placing this season compared to last year?
So we reduced it reaching the report and as it post like 15% compared to the previous year. And will grow in line with doing that. We will grow between 15% to 20% contribution in cotton.
So 15% to 20% for cotton? So we will still be below FY '21 level in a way because last year, we had degrown by 24%.
33% so you will be close to those numbers.
Okay. So we expect...
Again, we need to see the [ sentiment ] as a crop looks good, like we think [ the revenues will come up by ] 15% to 20%. So we are saying what we look in the base -- and based on that, our growth varies. But that's not a material growth in...
Okay. And what is happening on the cost side, sir, I mean, in terms of what we provide to our farmers for growing these seeds? Any escalation there?
On the production cost -- in terms of the production cost, there was slight improve in the production cost, but not much to impact.
Next question is from the line of Himanshu Upadhyay with O3 Capital.
I had a question on the SMAs only where you said the government did not take that much quantity, but the contribution of our new products has increased significantly from 10% to 24%. So the volume for our cold products has decreased very dramatically and are -- the only -- and do new products only go to the retail channel or new products also go through the government tender process? So can you elaborate on the mix? And what do we look ahead? So -- on this thing? And how should we read about new products growing significantly? Hello?
Ladies and gentlemen, we've lost line of the management. Please stay connected.
[Technical Difficulty]
Ladies and gentlemen, we've got the connection back of Mr. Mithun Chand.
So my question was related to Maize only. The -- what we have stated is that the new products have marked -- their contribution has increased significantly, okay, from 10% to nearly 24%, okay, which effectively means old products have gone down. Is it that the government only buys the old products or old or they even buy new products and -- but just we have been not able to sell them or it is -- means just what does this signify okay? And was the brand pretty big in the old brand, which was there in maize and hence, it brought around the whole market -- I mean, for the overall volume for us?
Lesion may go more than market site -- but for which [ 10 will ] have this contribute to just revenue. If you see, when we talk about the government, easily, we supplied the government asked for the varieties which are already proven in the market. We don't take a chance to renters. So that needs to be notified or that need to be sold in the market for 3 or 4 years. That's when you call for the tender on the [indiscernible] brand. So hybrids are already there in the market.
So -- in that way, the new hedges, which are increasing in the market may not be a part of it. And the other thing is that the new heavier [ produce ] usually, we give it to the new markets or the markets we're targeting so that to improve our sales. So that will be exciting for our new headwinds. And Maize, if you see even the revenues, even though the volumes are down, the revenues were not as on in respect to the one because the new hybrid that we are launching at a very high segment hybrids and in a very specialized [indiscernible] For example, you launched in. And that devices are pretty high.
And that is only specific areas where you can [ grow that silicon ]. So we are fine for how what we are launching. So that the product mix is already [indiscernible] if you see in the last 6 years, years, even the volumes are not that high in terms of year-on-year basis but the revenues are high. So if we collect what you are saying in 3 or 8 years back, we're saying that we're moving from 3 ways to new process hybrids with the lease and the price, both are high. We are moving the growth of our segment from more than 80%, 85% of the hybrid seeds in our portfolio. So that's what we're actually achieving.
And I see we are introducing many new products across the board, okay? And even in some of the crops we need to enter -- penetrate more. What special efforts are we making on the sales side, okay, and marketing side to grow the revenue besides cotton, okay? So in the non-cotton segment, what real efforts are we taking?
If you see our portfolio, if you see our company, we are the only company in India having the huge product portfolio. We are doing both cotton and non-cotton segments. And if you see most of the companies have done in cotton or any other crop. But as a company, we are the only company -- our strong growth in cotton and non-cotton segments. In the power we operate especially maize in the top 3, that [indiscernible] now we are thinking we are being working back also. If you see the 3, 4 crops, we are in the top 5. And the presence of the company is more than 25 years.
And even in terms of the marketing network or in terms of the presence across India, we have the highest presence and higher data network when it comes to any other company. And the efforts you can always see in the volume port -- if you see if you take volumes. The last 4 years, we are growing at more than 40%, 50% year-on-year. Although to start with, it was a small base that now we are close to getting market share that has started from less than 2% to 10% market share last year that it showed the center the product and -- sorry. And distribution sometime in effect. And the third, if we're talking in terms of the contribution for the non-cotton segment in the last 6 years has come from below 25% to almost like 65% that comes. So that's -- and the growth rate in non-cotton still going forward, non-cotton segment going much faster than the cotton.
And one small thing, one basic question. When we say new product or new hybrid rice, contribution has increased. So how do we define this? Is it 3-years vintage? 5-year vintage, 1-year vintage?
There's not any specific [ wireline ] for that, but when the same rice, the hybrid area there are a couple of rates which still has the potential to grow at large in terms of the market share. So in many areas where it can grow and really, when you talk about the hybrid for mature as where we see launch of 4, 5 years and stabilized. But when you see when you talk about me in the company, how do we still are growing at much faster [indiscernible] the penetration is higher. That depends on the hybrid-to-hybrid, which is not necessarily that any below 4 years, should we call that more than the potentially we say the renewal of the metro.
And then last year, effectively, how many crops or new products we would have introduced in all the 4 segments?
See, again, that depends like definitely nothing was [ from the hybrid ]. But all the on the variant which we have interviewed may not come up because some may not work in the markets.
Our next question is from the line of Sanjaya Satapathy with Ampersand Capital Limited.
My first question is that now you are looking at a better fiscal '23. So will your margin also go back to what you had seen in fiscal '21 along with recovery in revenue?
Definite margins will be in line with the prior year at start. In the start of the year, this is one of the year, and we cannot be a base for the margins. [ We go back ] to the previous margins are business and everything that's normalized and a stronger normalized path. We don't see any filler on the margins. In fact, 3-year transfers as the margin going forward, the margins will definitely grow and that will happen.
And sir, if I can just ask you in your balance sheet, I could see that your inventory for some biological, this thing has gone down a lot and overall inventory is not really higher as much on a year-on-year basis. Has that got anything to do with your demand outlook? And related to that, that though you were looking at a certain amount of growth. But are you prepared for a much higher demand, if that happens, considering the kind of inventory that you have?
So basically, if you see the inventories, inventories are in line with last year. So we are not seeing much of an inventory. The first we have enough inventory of cotton. So we are not given for production. So that's driving the value of the inventory. Apart from that, the non-cotton segment inventories are much higher than last year. So what -- as a policy, what we produce is only for the demand. So when we are talking about the 15% to 20% growth, we have an inventory for that, and we are doing that. Nothing to variable line will be normal things. [ Month which is done in the contaminates ] we have enough inventory, which is there, which we are having for the last because adjusting important that we are putting out this year.
Understood. And coming back to your -- you have been seeing volatility in your top line as well as bottom line for several years now. So on a 4-, 5-year basis, there has not been much of growth. Your mix...
Sorry, it was not clear. Can you please...
So my question is that -- I mean, for several years now, overall growth has not been there in over while the product mix has changed a lot. And every year, of course, it brings its own challenge. Though you had some kind of a plan that after changing the product mix, you will be able to consistently grow 15% kind of basis. So do we have that kind of visibility from here on?
Definitely, if you see, if you see -- when we say inventory for the last 5, 6 years. But if you see the product contribution, cotton was more than 75%. And on the cotton is down in the company. And the prices in the cotton is down by more than 25% [ because of the pandemic ] If you go back to the second 15 level, we got most of the [indiscernible] And now it's a reduced megabits, that's an effect of [indiscernible] over and above the cotton service. So these are impacted in terms of the revenue. But if you take the action volumes as such, except for the cotton and all of the crops do. And if you see now in the cotton is on back significant even if it's important and significant cut, but in terms of the contribution to the revenue is much lower than what it was. So now you see the growth fund because that was the driving portfolio that we had, and we are growing. So that's compensated or [indiscernible] as such. But hereon onwards, you can see the growth go back [indiscernible]
Understood. And a lot to that, considering that you have been paying out through buybacks or whatever and -- but still we have a lot of cash. Is there a possibility of Kaveri kind of getting into some kind of a non-sale business and make it less seasonal and less monsoon-dependent then? And is there any bigger part of investment? Or you'll just stick to what you are doing now?
Basically, we don't have intention or thought as of now go to other segments because Kaveri, we still have potential to grow more than 12% to 15% year-on-year basis. And when you see an Indian seed market when compared to other seed markets, it's much lower the [ the cabiration is ] lower and we spoke for growth is pretty high, and we are getting very new technologies. And now we are expanding to other countries. So in terms of our approach, we will be spending for the feed business only as of now [ on sedative point ]. And that's the reason we are going back and we can on this in the other aspects. So we don't require much of the specialty business. If there's any new technology in [indiscernible] cash. But as of now, whatever you want to do examine segment and still we see a long waited [indiscernible]
Our next question is from the line of Sumant Kumar with Motilal Oswal.
My question related to cotton sales. So you guided a 15% to 20% growth in volume. So whatever the growth guidance you have seen in the total number of package is coming around 6.4% on base of FY '22. But what we are expecting in FY '23 is all of the bumper cotton crop in -- and still, we are lower than 7 million package, 7 million to 7.2 million packet we have reported in FY '20 and '21. So why our guidance is lower, can we expect a 7 million package sales or more than 7 million package sales in FY '23? If not, is there any challenges in the market -- in current markets?
So if you take on the crop sentiment given the cotton crop looks good, but all the commodities, if you take any alternate crop like [ soya ] the prices are high. In terms of the growth in the cotton market will be only in between the 10% to 15%, not more than that. When we anticipate a growth of 10% to 15%, we are as a company, we're saying that we grow 15% to 20%. So we will be in line with the investors. If you say the industry will grow by 30%, 40%, but definitely in line with us. But what we see is the industry can grow between 10% to 15%, not more than them because all the alternate costs.
Okay. So 15% to 20% this year...
What I want to say is that we'll grow, but it is [indiscernible]
Okay. By any chance, do you think the scenario going on the ground and the overall cotton price is higher compared to other crop, the profitability is better? In that, do you think you can revise your guidance in maybe you can show a 7 million packet, any positive indication?
So we have the inventory. We have the network. We have the brand acceptance and the coming community. The industry growth in that session, we definitely will -- we said, will grow much better than in and we'll have the first advantage for that in terms of. But was what our anticipation is that -- when you see the alternate crop, apart from quaternaries for or any other alternate crops on the commodity prices are -- so in that sense, what we see definitely coaters will go up in some areas it will lead to quarters come down. But overall, as a country, what we see is that it will grow in between that 10% to 15%, not more than that. If by any chance if the cotton grow than our and distribution then definitely, we have inventory. That shouldn't be a challenge to take the market [indiscernible]
So you said quarterly 15% to 20%, correct? Cotton volume growth?
For the company, for the company, we say 15% to 20%. For the industry, it should be between 10% to 15%.
Our next question is from the line of Arul Selvan with Value Research.
This was more of a [indiscernible] I think the management's voice is a little bit muffled. If we could just request you to kind of keep some distance in the mic, we'll be able to hear better.
Okay.
Next question is from the line of Anurag Jain, an investor.
First, my question is on the mustard seeds. Management had highlighted last year that mustard seeds is going to be a growth area...
So the questions have been removed. There are no further questions. I would now like to hand the conference over to Mr. Mithun Gupta for closing remarks.
There was some question, someone was asking a question.
Sir, the questions have been removed. You can proceed for closing comments.
Thanks for the call. For any other further questions, feel free to ask the investigation desk or you can contact them and we'll be able to help. Thank you.
On behalf of Kaveri Seed, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.