KAVERI SEED CO LTD (KSCL) Q3 FY23 Earnings Concall Transcript

KAVERI SEED CO LTD (NSE:KSCL) Q3 FY23 Earnings Concall dated Jan. 25, 2023.

Corporate Participants:

Mithun Chand — Executive Director

Analysts:

Nitin Awasthi — InCred Equities — Analyst

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Keshav Garg — Counter Cyclical PMS — Analyst

Samridh Rela — Value Research — Analyst

Anurag Jain — — Analyst

Vipul Moody — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to Kaveri Seed Company’s Q3 and 9M FY ’23 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 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 now hand the conference over to Mr. Mithun Chand. Thank you and over to you, sir.

Mithun Chand — Executive Director

Thank you. Good afternoon, and welcome, everyone, to our quarter three and nine months financial year ’23 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on the website. I will touch up on the operational and financial performance of the company, and then open the floor for the question-and-answer session.

We are delighted to declare good results for both quarter three and nine months financial year ’23. We have witnessed higher area coverage during the quarter in two of the large segments rice and wheat, which has resulted in good revenue growth. Besides this, there has been good revenue growth registered in cotton, hybrid rice, maize, vegetables and all other three segments. Another major achievement during the quarter and nine months result that is we were able to convert volume growth into revenue growth across these segments.

As a part of our rewarding our shareholders during the quarter, the company had successfully completed the buyback of 23,99,831 shares of INR2 each for an aggregate amount of INR125.37 crores. There was a margin expansion in nine months financial year ’23. EBITDA margin was up by 378 basis points and PAT margin was up by 409 points. This is a very encouraging sign, and we would be able to maintain the margins going forward. Overall response for increasing hybridization, increasing share of new products in each segment as good results in the current year and in the coming years.

I would now like to touch up on operational highlights for the quarter. Quarter revenues increased by 6.2% in the non-cotton segment. Hybrid rice and maize revenues increased by 117.1% and 46.5%, respectively. Hybrid paddy KPH468 scaled up as well as margin, which has resulted in volume and market share gain. Paddy higher area is reported from the states of Tamil Nadu, Andhra Pradesh, Orissa, Karnataka and Telangana. The contribution of new products was up from 19.73% to 34.29% in the overall volumes of maize. Wheat has reported 2.86 lakh acres compared to 278.25, which has resulted in 8.2 lakh acres more. Exports continued to strong. Currently exporting to Sri Lanka, Bangladesh and Vietnam.

Quarter three financial ’23 highlights — financial highlights. Revenue from operation was at INR123.49 crores as compared to INR102.08 crores in quarter financial year ’23, registered a growth of 20.97%. EBITDA was at INR43.95 crores as compared to INR16.32 crores in quarter three financial year ’23, increased by 160.31%. Net profit was at INR37.54 crores as compared to INR9.02 crores in quarter three financial year ’23, registered a growth of 313.24%. EBITDA margin was at 35.59%, up by 1,960 basis points. PAT margin was at 30.40%, up by 2,150 basis points.

Nine months financial year ’23 highlights. Revenue was at INR939.93 crores as against INR860.44 crores. For nine months financial year ’20, they registered — for nine months financial year ’23 registered a growth of 9.24%. The EBITDA was at INR3.67 crores, up by 23.69% on a year-on year basis. PAT stood at INR80.93 crores, up by 26.55%. EBITDA margin was at 32.31%, up by 378 basis points. PAT margin was at 29.89%, up by 409 points. Cash on books stands at INR403 crores.

Government commitment to support Indian research and encouraging approvals given by them for the indigenously develop new hybrid and the advanced seed varieties are going to regain changes for the coming years. This would go a long way in overall growth of the company, and we are expecting revolution in technology changes and see that segment on both domestic and international business segments. We would like to reiterate again that we are a strong R&D company and have been agile in bringing multiple new variants across these new segments.

I will now open the floor for the question and answer session. Thank you.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Nitin Awasthi from InCred Equities. Please go ahead.

Nitin Awasthi — InCred Equities — Analyst

Hello, sir. I would like to understand where are we on the regulatory —

Operator

— handset, Nitin. Sorry, your voice is not very clear.

Nitin Awasthi — InCred Equities — Analyst

Hello, is it more audible now?

Operator

There is an echo. But, yes, you may try and go ahead.

Nitin Awasthi — InCred Equities — Analyst

Okay. Just give me a second, one second. Hello, is this better?

Mithun Chand — Executive Director

Yes. Thank you. Better. Yeah.

Nitin Awasthi — InCred Equities — Analyst

Okay. So, I just wanted to understand where are we on the regulatory front when it comes to GM Master and HTBt cotton. If you could give us a view of where we stand, where the government stands and how probable is the commercialization of the same?

Mithun Chand — Executive Director

Yeah. If you see in the last two quarters, there is a moment in the action from the government. The GAC is also moving in terms of introducing the new technologies, most probably they are likely to introduce BG-III — BG-II RRF in the next one or two seasons. There’s a continuous meetings which are happening with multiple technology providers, government and from the private players. So there’s a conversion of this thing, what we see is that a lot of positivities in the last two quarters. We, as a company, we are expecting that the technology will come very soon.

Nitin Awasthi — InCred Equities — Analyst

Got it, sir. Sir, also on the HTBt cotton, so you’re saying there is no commercial light — green light being given by the approval is you see as it now because if I’m not wrong GEAC did approve it.

Mithun Chand — Executive Director

No, this is still under trial. Most of the trials are completed. The commercialization, the license needs to be given by the government for the commercializing, then everything will fall under it. We are waiting for the approval of the GAC, which is the authority for giving the approval for the technology provider, not for the individual product.

Nitin Awasthi — InCred Equities — Analyst

Okay. Noticed. Understood. That’s all the questions from my side.

Operator

Thank you. [Operator Instructions] The next question is from the line of Sanjeev Zarbade from Dreamladder Investment Advisors. Please go ahead.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Yes, sir. Am I audible, sir?

Mithun Chand — Executive Director

Yeah. Thank you.

Operator

There is phatic that is coming from your line.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Hello.

Operator

Yes. It’s better now. Please go ahead.

Nitin Awasthi — InCred Equities — Analyst

Okay. Great. Great. So I wanted to know about the cash on the balance sheet, now that we have completed the buyback.

Mithun Chand — Executive Director

So — as on 31st December the cash is INR403 crores. That’s after the completion of the buyback. We have completed a buyback in the last week of December.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Okay. Can you throw some light on the competitive landscape? And are we in a position to pass on price increases in the future?

Mithun Chand — Executive Director

It’s a highly competitive market. The competition is between both the domestic and the international sales. We have all the international players present in India. It’s not now from the last three, four decades they are present. As a company, we are competing with both the domestic and international players in the respective crops and we are able to gain market shares and we are able to realize much better than most of the companies. And as you all know that seed is most important part of the entire agriculture and it costs less than 5% of the total input costs — and most of the costs. Spending money for seeds is not an issue with the farmer, because that derives the entire yield. So usually farmer doesn’t compromise on seed and usually we are able to pass it on to farmer and I think it will continue going forward. We don’t see any challenges in it.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Right, sir. And whether these kind of margins that we have achieved in current fiscal, are they achievable in the next couple of years? Or can we even maybe better from current levels?

Mithun Chand — Executive Director

If you see the previous last eight, 10 years, if you compare our margins, always we were sustainable. In between, there were one or two years where the margins are under pressure where we were dealing with cotton and cotton was regulated. We had some issues in a couple of years. But if you see, always our margins segmented in between the 28% to 30% and we are pretty confident that those margins will remain and which is maintainable. As we go up and scale up sales, even there’s a chance of that slightly improvement in the margins going forward. But for sure, this can be available wended out.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Right, sir. And sir, if I look at your long-term financial performance, will be the peak revenue of INR1,100 crores in March 2015. And we’re still below that level. And during this period, even the stock assets kind of moved in a very range fashion. It’s almost at the area level of what it was. So how do we see as an investor in the next four years, whether there could be — there is a possibility of a quantum jump from — are there any figures? What kind of comfort you can share with us?

Mithun Chand — Executive Director

There are a couple of things to see in it. One, when we have done 2014-’15, the peak revenue, the cotton contributed close to 75%, the cotton [Indecipherable] non-cotton contributed only 25%. From there we — there were so many issues regarding cotton and the acreages were peak at that particular year. Later — the cotton acreages were down more than 20% from last year, in fact, more than 25%. The cotton was at 14.5 million this year. And it — now it’s 10.5 million, 11 million hectors. And the — there was a price cut in cotton seed. And we lost market share in some crops. So it’s all resulted in the decline in the revenue, but the other part of the thing what we need to see that from 25% to we have gone to 70% plus — about close to 70% in non-cotton crops.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Okay.

Mithun Chand — Executive Director

So, wherein we have improved realizations where we have seen continuing growth and these are the crops which are growing in India. For example, if we take rice — rice is growing in 44 million hectors, out of which around 5 or 6 million hectors are hybridized. These are the crops which are in a growing phase and we are gaining market shares in those crops and we have very good pipeline hybrids in the crops, not only cotton and maize — maize is also growing. We are growing in maize and all segments. Earlier we were present only in Kharif segment, now we have moved to Rabi segment also. And if you see both maize and cotton, maize and rice are comparable with cotton sales now. And the other segments even vegetables we are growing, sunflower vegetable — there, simultaneously we are growing indoor crops, but they may not be as big as these crops because most of the Indian hybrid market is — market shares are for these three crops. So what I mean to say that we are big in those three crops and we are also big in the other small segment crops.

Going forward what we see, we are in a much healthier position than what we were earlier. As a company, we were more dependent on cotton in 2014-2015, now we are not dependent on any crop, but we are there and big in most of the crops in India. So that means that — that’s a very encouraging sign. And moreover, we have strengthened our R&D in the last six, seven, eight years. We were having R&D, but we are spending more in R&D, and we have many good pipeline hybrids, which gives us confidence to grow going forward for the next five to 10 years. And the other part we need to see in between the new technologies were not introduced in the last five, six years. It’s all moving in the last six to eight months. So this is a very good sign for the entire industry.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Right, sir. And sir, just last question from my side. Has this change in product mix anything to do with the steady increase in working capital base over the last seven, eight years? Like, I can say it’s almost 172 days in March ’22 as tripled to around 30 or 29 days some seven, eight years back. Does it have anything to do with that?

Mithun Chand — Executive Director

So this will remain based on the seasonality, based on those things we need to give. But, I don’t see much of a change in that. And if you see whatever cash we have generated in the last six years, seven years, even though the stock price was not performing or we were not able to grow, but we have done five buybacks in the last five years is where India Western reached close to 20% of our equity. And it would place you see the quantum, which was distributed to shareholders in terms of the buyback or in terms of the dividend just close INR1,100 crores, INR1,200 crores.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Okay, okay. That’s very good. Great. Thank you sir for my — for answering my questions. That’s it from my side. Thank you.

Operator

Thank you. The next question is from the line of Keshav Garg from Counter Cyclical PMS. Please go ahead.

Keshav Garg — Counter Cyclical PMS — Analyst

Firstly, on behalf of all the shareholders, I want to thank the management and promoters for regular buybacks. And since the past two years, the company is doing open-market share buyback, wherein the promoters are not participating. So it is even more creditable and creditable and shows the confidence of the management in the company and the prospects, so sir, thank you very much once again. Sir, just wanted to understand, sir, taking from the previous caller, sir, we appreciate the reasons why after 2015, the company went in a sort of a lean patch due to the regulatory changes, which were detrimental to our interests, but the question is that, trailing 12 month, we are doing approximately INR240 crores to INR250 crores EBITDA whereas in FY 2015, we did around INR307 crore EBITDA. So, in your judgment, do you think that in FY24, company, if everything goes as per the plan, the company can exceed this all-time high EBITDA of around INR300 crores that we did in FY15?

Mithun Chand — Executive Director

What is the percentage, I just need to see, but the calculation what we have now where we stand, we will grow in-between 15% to 20% year-on-year basis and that’s how the calculation is as the demand. But we are pretty confident that that will continue for long.

Keshav Garg — Counter Cyclical PMS — Analyst

Sir, and also, sir, in the past — not in the third quarter, but in the first two quarters of this financial year, we had seen price erosion in our seeds. So, is that behind us and the kind of revenue growth we are seeing, sir, if you could just bifurcate broadly into realization growth and volume growth?

Mithun Chand — Executive Director

Yeah, compared to previous year, there are couple of things we need to be noticed. In some crops, we have not realized well compared to previous year. In some crops, we’ve realized well. For example, in hybrid rice, they are not able to realized well compared to previous year even though there was volume growth. In maize, we were able to realize more. In cotton, there was a price increase, but because of the competition as a part, this was the lowest realization in the last six, seven years for us in cotton. In-spite of all those things, as we have done good sales in other crops, which are high profitable, we were able to increase our margins. Going forward with the mix what we have and the crops where we have lost, where we were not able to realize well, we have pretty much scope of increasing more — increasing realization in those crops. That gives us more confident that we will be able to maintain and in fact, it may exceed from the present levels.

Keshav Garg — Counter Cyclical PMS — Analyst

Great, sir. I lastly wanted to understand about the vegetable segment. Sir, since there are so many vegetables, sir, I don’t know, how big is our portfolio, how much of the vegetable crops we are covering. Sir, but the nine-month revenues of INR35 crore, which are roughly like 3.5% of our total revenue. Is there — in your judgment, is there scope that in due course, the revenue from vegetables can become 10% or even beyond of the total revenue of the company?

Mithun Chand — Executive Director

Vegetables is one of the most important portfolio, what we have. Vegetables is growing at more than 20% at the industry level, 15% to 20% at the industry level and we are pretty much scope that. Even in vegetables, the majority of the market shares are by hot pepper, tomato and okra. These are the three crops, which contributes more than 50% of the total revenues. So, we are basically concentrating on three crops traditionally and apart from that, we are doing some cauliflower and vegetable where we are importing. As such, vegetable we are very bullish of vegetables. Vegetable will definitely contribute to more than 10% of the revenue in the next three to four years.

Keshav Garg — Counter Cyclical PMS — Analyst

Great sir. And sir, also apart from these segments that we have given of hybrid rice, selection rice, maize, vegetables, is there any other blockbuster products in the pipeline, which can — which you think can dramatically step up our revenue trajectory going-forward?

Mithun Chand — Executive Director

If you see, we see growth in what we mentioned there, cotton, rice, maize and vegetables. This contributes majority of Indian hybrid seed market. This contributes to more than 90% of the market-share. We have very good products in out of this four. Apart from this, we are into sunflower, mustard, bajira, wheat, which falls in the 10%. So in all the segments we are there, but we only highlight this four crops because this has been majority market shares.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay sir, thank you very much and best of luck to you.

Operator

Thank you. The next question is from the line of Samridh from Value Research. Please go ahead.

Samridh Rela — Value Research — Analyst

Hi, am I audible?

Mithun Chand — Executive Director

Yeah, yes.

Samridh Rela — Value Research — Analyst

Sir, I wanted to know what is the volume growth in the non-cotton segment, if you can share the numbers for hybrid rice, selection rice, maize and vegetables? Those are all there on the left side in the presentation. As of now, I don’t have the volumes. In all crops, we’ve grown. It’s better to — volume growth is one of the aspect, but the other thing is also — we need to also see the revenues growth. There are some crops, usually where in the value — the revenue is pretty high than what [indecipherable]. Okay, sir.

Operator

Thank you. [Operator Instructions] The next question is from the line of Anurag Jain as an individual investor. Please go ahead. Good afternoon. So my first question relates to the vegetable business. In the financial year 2022 annual report, Company had given a guidance of. Revenue of INR65 crores for the vegetable seed business. Now in the first-nine months, Company has achieved around INR35 crores of revenue for in the vegetable seed business. So would you standby with the old guidance or what is the updated guidance and how do you see the rest of the year for the different seed segments, even though I know it’s a basically a lean business in terms of leaving quarter?

Mithun Chand — Executive Director

Basically, we are pretty confident about the vegetable business in the fourth quarter. Usually the vegetables usually come in the fourth quarter. So have we are pretty confident but in that sort of figure, we need to see to what extent we can achieve it. As of now, we are on the direction.

Anurag Jain — — Analyst

Okay, thank you, sir. And sir my second question relates to the other income in the quarter, given that the Company has financial assets of around INR400 crores and probably at the start of the quarter, it would have been INR600 crores before prior to the buyback. So on an average of INR500 crores of assets there, other income during the quarter of almost INR31 crores-odd, INR30 crore-plus. So if you could — is there some onetime entry there or what would explain the jump in the other income of almost INR32 crores in the quarter?

Mithun Chand — Executive Director

If you see quarter, it looks higher, but if you take the year-on year basis, last-time it was like INR30 odd — INR38 crores, INR40 crores for the entire year. At this time, it’s like so for the nine months, INR47 crores or INR48 crores. It should be other INR5 crores to INR10 crores more but that all depends on what we really. Basically, you all know, it all depends on when we have invested and what time it’s getting expired. That’s how the redemption comes into the quarters. And apart from that, we had a buyback in the third quarter. So, we need to redeem money for that. That also resulted in more of other income. But on a year-on year basis, INR40 crores to INR50 crores what we were getting, that’s what we get at the end of the day. INR5 crores or INR10 crores plus-minus based on the date of investment and the maturity date.

Anurag Jain — — Analyst

Okay and one last question, sir. During the quarter, was there any recovery from — there were some outstanding receivables with government corporations, which were earlier provisioned for. So was there any recovery during this quarter?

Mithun Chand — Executive Director

A few amounts have been recovered, not significant, but it is in process of recovering. But to answer to your question, we have not provided for any other extra provision for this quarter.

Anurag Jain — — Analyst

Okay, so in this quarter, neither there is any significant recovery or nor there is any —

Mithun Chand — Executive Director

Yes, but we are pretty confident that will come.

Anurag Jain — — Analyst

Okay sir, thank you. Thank you. This is all from my side.

Operator

Thank you. The next question is from the line of Nitin Awasthi from InCred Equities. Please go-ahead.

Nitin Awasthi — InCred Equities — Analyst

Sir, going through the common documentation, government documentation, one function on that, there has been approval given for genetically modified potato and also banana. Is there any seriousness from the government to put these crops or are these on the — are they on an experimental level?

Mithun Chand — Executive Director

See that all depends — all the crop will follow. If they give clearance for any vegetable, for example, mustard is edible crop. We ae talking about GM mustard as well. If it is given to mustard, every crop will follow it. It’s not only banana, tomato — brinjal is there. All crops will follow it.

Nitin Awasthi — InCred Equities — Analyst

Correct. Brinjal is on a backbone for some time now. But, banana —

Mithun Chand — Executive Director

No, it’s not that. There was a debate saying that cotton is a non-edible crop, that is the reason they have not encouraged any permission for the edible crops. Now they are talking about GM mustard, which is a edible drop. If they give any permission or license or any sort of a trailing, then all the crops will be eligible for that.

Nitin Awasthi — InCred Equities — Analyst

Understood, sir. Thank you.

Operator

Thank you. [Operator Instructions] We have the next question as a follow-up question from the line of Keshav Garg from Counter Cyclical PMS. Please go ahead.

Keshav Garg — Counter Cyclical PMS — Analyst

Sir, just wanted to understand whether any new developments have been there on the tag demand notice that we had refused last quarter of INR71 crores pertaining to FY ’21? Sir, any new developments or what are we hearing from our legal team regarding that?

Mithun Chand — Executive Director

See last quarter, we have mentioned that we have went for an appeal for it. You know the court, how much time will it take. Whenever the result is there, that would definitely exclude from the exchanges as the moment we get it.

Sanjeev Zarbade — Dreamladder Investment Advisors — Analyst

Okay, sir. And sir also, are there any plans to get into food seeds.

Mithun Chand — Executive Director

As of now, no. We don’t have any focus on that. But we are into vegetables whether it’s solid fruit or not. I don’t know, because we are into watermelon.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay. Okay, sir. Sir, any plans to get into hydroponics?

Mithun Chand — Executive Director

As of now, no. No.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay, sir. Sir — and also, sir, in our last year’s annual report, sir, we had borrowed some small quantum of money from Department of Biotechnology at 2% per annum. Sir so, is there any possibility that we can really scale up this funding from this source since it is negligible cost of 2%.

Mithun Chand — Executive Director

We don’t require fund as well. We have enough cash on the books and we are a zero-debt company. That’s the only way — that is the only thing where we are taking government funding and government research program is there. For that we were having it, we’re availing it. So it’s a very INR2 crore loan, it’s a very insignificant loan.

Keshav Garg — Counter Cyclical PMS — Analyst

This is, sir, so that’s what I’m saying that. I mean, like we don’t need funds, we already have excess funds. But even if we can borrow at 2% and investing in liquid, mutual funds also, still we can on a —

Mithun Chand — Executive Director

No, no. That activity we don’t do. That is — it’s fair for that particular part.

Keshav Garg — Counter Cyclical PMS — Analyst

Great sir. Sir and — also sir, the CSR fund that we are using, sir, is there any possibility of losing those funds to increase our visibility and goodwill in our major markets?

Mithun Chand — Executive Director

Basically CSR funds will not be spent for the company’s branding or something. But they were now they known for the CSR. But we are investing in most of the education and the skill, rural skill employment and skill development and to their infrastructure. Basically we have for educational — we are spending for education.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay, sir. And sir, what kind of approximate CapEx program do we have over the next, let’s say, one year?

Mithun Chand — Executive Director

Year-on-year it will be in between like INR30 crores odd — INR25 crores to INR30 crores odd, as we have majority of the investment is already done in the new office. It’s only for the research what we need to spend. The year-on-year INR25 crores, that should be sufficient. That’s what we’re doing for the last six years, seven years, eight years.

Keshav Garg — Counter Cyclical PMS — Analyst

So this is R&D CapEx you’re talking about?

Mithun Chand — Executive Director

Across the company. Now, CapEx — majority goes for the processing or the R&D. We have building up R&D biotechnology plant. For that, we required CapEx. And that will be bringing INR25 crores to INR30 crores on a year-on year basis.

Keshav Garg — Counter Cyclical PMS — Analyst

Okay, sir. Sir and — also sir, our subsidiaries, we have not really been able to scale up the revenue from our subsidiaries which were around INR55 crore in FY ’22 after like nine years. So sir, going forward, sir — sir, firstly sir, what is the major business of these subsidiaries? And sir, also, what is the possibility of really scaling it up going forward?

Mithun Chand — Executive Director

Yeah. If you see the subsidiaries, year-on-year they’re growing. Most of the subsidiaries deal with cotton — dealing with cotton earlier and we have seen a dent in the cotton. But even in that scenario subsidiaries have done well in terms of the cotton sales. And most of the research has done in the main company, wherein we have some competitive products, where we see — where Kaveri cannot promote and they are unique. That products we’re marketing the subsidiary products — subsidiary companies. So they are also gaining and we’re pretty sure that — that will also go up. And if you find year-on year basis, we are growing. Compared to previous year also this year does won both. All the subsidiaries have gone in the — grown in the company with the share.

Keshav Garg — Counter Cyclical PMS — Analyst

Great, sir. Thank you very much, sir.

Operator

Thank you. The next question is from the line of Anurag Jain as an Individual Investor. Please go ahead.

Anurag Jain — — Analyst

Thank you, sir. This is more of a request rather than a question. In last five, seven years, the company’s product range has expanded significantly. But this is not reflected on the company’s website. So if you could consider updating the company’s website? And to bring the product portfolio shown on the website in line with what you have in the market already, especially —

Mithun Chand — Executive Director

That already there. But, sure, anyhow I’ll recheck it and if something is missing, definitely we will update. Thanks for the suggestion.

Anurag Jain — — Analyst

Thank you, sir.

Operator

Thank you. The next question is from the line of Vipul Moody, as individual investor. Please go ahead.

Vipul Moody — — Analyst

Hello. Am I audible?

Mithun Chand — Executive Director

Yeah.

Vipul Moody — — Analyst

Yeah. Good afternoon, sir. Yeah, congratulations for the good set of numbers. So my question is relating to gene-editing technology, which has been allowed in India. And there is no oppose regarding to that. How much of the companies prepared to deal with it? Is it — whether the company is looking for collaboration with gene-editing technology patent holder companies or is it like the company has applied for gene-editing or something? Will it pose straight to the hybrids, which the company is already into?

Mithun Chand — Executive Director

We are open to tie-up with the companies. Now the most of the new technologies, the gene-editing technology is coming now, which for — is the one which deals with it. We are already on — we are already in — we’re seeing exposed some options in that, but it will take some time. But we are open for your question.

Vipul Moody — — Analyst

Okay. Does it pose a threat to hybrid portfolio — existing portfolio? Is it better — is it — does it compete our portfolio?

Mithun Chand — Executive Director

See, when the new technology comes in, definitely most of the companies upgrade to those technologies. Really the companies adapt those technologies whichever is better for the better result. That’s what we do in hybridization. Even, you take any hybrid, if we — if — there is any good germplasm or if any new issue terns, definitely we’ll big for that one. So — definitely every — most of the companies will upgrade to those technologies. And then — don’t think that’s it for existing one. The only thing that might be replaced with new technologies. For example, if you take cotton, when the genetically modified crops came in, most of the hybrids moved to genetically modified hybrids.

Vipul Moody — — Analyst

Okay. That is very well understood. Okay. One more thing I want to talk — what are some special — like what is a special — like what are the efforts given for exports to increase our exports?

Mithun Chand — Executive Director

We are very — again, on exports, we are very well bullish on exports. We are exporting to neighboring countries, Southeast and even the African countries. So we see a lot of opportunity there and some of the products that are very, very much accepted there. And going forward, definitely you see a good revenue growth in exports also. But it will take time as we need to test that products in other countries. The registration itself takes three years to five years, most of the companies. We are already in the process of registering it in some companies. And we are marketing to some other companies there.

Vipul Moody — — Analyst

Okay.

Mithun Chand — Executive Director

But definitely we’ll see increase in the revenue.

Vipul Moody — — Analyst

Yeah. Thank you.

Mithun Chand — Executive Director

Thank you.

Operator

[Operator Closing Remarks]