Ladies and gentlemen, good day and welcome to Kaveri Seed Company's Q2 FY 2026 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 would now like to hand the call over to Mr. Mithun Chand. Over to you, sir.
Thank you. Good evening, and welcome, everyone, to our quarter two H1 financial year 2026 earnings conference call. We hope you have had a chance to review the presentation of our results, which is also available on our website. I will touch upon the operational and financial performance of the company and then open the floor for question and answer session. Revenue from operations have registered a growth of 17.09% up to INR 1,031.91 crore as compared to INR 889.85 crore in first half 2025. EBITDA was at INR 333 crore, grown by 11.12% as compared to INR 299.68 crore in first half 2025. Net profit was at INR 301.45 crore as compared to INR 279.41 crore in first half 20 25, grown by 7.9%. Cash on books stands at INR 363 crore as against INR 559 crore.
For quarter two financial year 2026, revenue from operations were at INR 96.61 crore. EBITDA was at INR 0.16 crore. Net profit were at loss INR 15.05 crore. Board has recommended 250% dividend, that is INR 5 per equity share and a face value of INR 2 per equity share. The double-digit growth in revenue and EBITDA are very impressive. A substantial increase in maize volumes resulted in much higher growth in terms of its revenue, which shows its potential in our non-cotton portfolio and also shows the strength of the company in this segment. In spite moderate volume growth in selection and hybrid rice, the realization were higher. Maize volumes increased by 29.7%, our revenues increased by 56.76%. The contribution of new products to volumes of cotton is up from 11% to 36%.
Cotton sales impacted by increased illegal cotton seed usage. Increasing cost of production of cotton seed impacted the profitability. Hybrid rice volumes increased by 0.9% and revenues increased by 21.48%. Selection rice volumes increased by 2.6% and revenues increased by 11.01%. Vegetable seed revenue increased by 31.06%. I will now open the floor for question and answer session.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on their touchtone telephones. If you wish to remove yourself from the queue, you may enter star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the queue assembles. The first question is from the line of [Yogesh Mittal], who is an individual investor. Please go ahead.
A question about the vegetable seed. Since last few years, we have increased the focus on the R&D and we also have a dedicated sales team for this. But the sales and this have not gained much traction in last few quarters. Can you please explain what the company is taking initiatives for growth of the vegetable seeds? And how is the competitive landscape happening in this area?
Vegetable market is a very competitive market, and it's a year-long business. Vegetables in the sense like, there are many segments in vegetables, but majority of the segment is dominated by chili, okra, and tomato. These three contribute to majority of the revenues. As a company, we are very much focused on vegetables. As you rightly said, we have intensified our R&D team. We are much focused on few vegetables, and we have a separate dedicated team. Yes, last couple of years, we were not able to grow much as anticipated, but definitely we have grown in terms of vegetable seed business. Even this year, we have grown in terms of revenues. Going forward, we are very bullish on vegetables and definitely we will be achieving good growth in vegetables. This year also, in the second half, we see a good growth in vegetable.
Because first half we are seeing heavy rains. Even that has impacted a few amount of sales, but we are pretty optimistic about the second half.
Thank you. Yes. Okay. Thank you, sir.
Thank you. The next question is from the line of Dhruv Saraf from Bowhead India Fund. Please go ahead.
Yeah. Hi, Mithun sir. Just wanted two questions to ask you, sir. One is, sir, what is the R&D spend for the quarter, sir?
For last year, the entire R&D spend was INR 60 odd crore. This year, the R&D spend, if you take in a quarter wise, it will be slightly here and there, but every quarter we will be spending in between INR 15 crore-INR 20 crore.
INR 15 crore?
Yeah, I am talking about only recurring expenses. Again, CapEx is different. If you observe the balance sheet, it increased the amount of depreciation also.
Yeah.
That is one because we have set up a new office, and we have already this quarter, we started the R&D facility also. Both are impacting the depreciation.
Okay. Secondly, sir, employee and the other expenses have barely grown at 14% in H1. Does this benefit continue for the rest of the year? Do you expect an increase or decrease in R&D spending?
It will be in between the 12%-15% rise. One is the increments, and the other is new headcount because as we are adding new crops and new people, new R&D facilities, that is why the costs are going up. That should be in between 12%-15%, combination of both increments and headcount.
Understood. So finally, sir, inventory has gone up significantly on a year-over-year basis, will be half year balance sheet. Will there be further build-up in inventory going ahead, or does it remain at the current level?
Last year we had built up inventory in anticipation of a good sale this year. Unfortunately, even though we have achieved the sale, but we got not per our anticipation, especially in seeds like cotton. Cotton we had built up inventory, but because of illegal usage and the acreages were coming down, that has impacted. We have seen some sort of inventory, higher inventory, and we have produced some buffer stock because last year the entire inventory was cleaned up. So in rice and maize also, we have some buffer stocks and inventory. This year it will be high, but going forward it should be in line with this year. It will not increase.
Okay. Understood. I will come back. Thank you.
Thank you. Participants with questions may enter star and one. The next question is from the line of Amit Doshi from Care PMS. Please go ahead.
Yeah, thank you. Sir, this cotton has again, Q1 also did not do well, Q2 also didn't do well. I wanted to understand in the inventory, which the earlier participant asked, what portion of it would be cotton, and have we taken I mean, is it because illegal cotton seeds are cheaper? Then you also mentioned that there is a higher cost of production of cotton seeds. Have you taken hit in the P&L towards that and the inventory is valued at the market price? How would the treatment go? Because trying to understand the impact on the margin despite such a huge rise in the maize price revenue as well as volume growth.
Basically, we take the inventory cost at cost. We'll not take it as selling price. We'll take it at cost. The cost incurred by the company. As a policy, whenever we write it off the inventory, we take it in the balance sheets. All the inventory which is there in the books are sellable inventory, and we are not worried about the inventory as it's all a fresh production. In terms of cotton, the inventory stays for three to four years, so we are not worried about that. Whereas in other crops also the inventory, the cost of production has gone up, both in maize and rice, but we were able to pass it on to the farmers in those segments. Whereas in cotton it was a restricted one, so we were not able to pass it on.
That's the reason you see a huge rise in the revenues and the volumes. As maize as a crop is growing crop and we see a huge potential in maize going forward. As a company, we are very much focused on maize and that's how even the volumes are reflecting that growth. Even in the second half we see a good growth in maize, and that will continue for at least three to five years.
Yeah. Okay. That was my point was about the cotton seed, since you cannot sell it beyond a point. If we already have a higher cost inventory, which we are not going to be selling at that same cost, then why don't we kind of take it a hit?
No, we can sell it in the next years also, right? We will sell it in the next five years.
Seed is already high, right? So basically just to understand, so we are sitting on a high-cost inventory, correct? Out of that INR 920 crore, there will be some portion which is cotton and which is a high-cost inventory. At which price it is difficult to liquidate? Just correct me if I am coming.
No. The inventory, what I meant to say is that the cost of production was higher than last year, but definitely lower than selling price.
Okay. That is what I wanted to confirm.
Yeah.
Okay. Understood.
The margins are taken. I mean to say we are not getting any negative returns on that.
Okay. Now coming to the sorry, before that, exports, sir, can you share what, how has been export? We were quite positive on exports.
Yeah.
What portion is exports, and if you can just give any color on that.
Compared to last year, we will do well in the exports. Exports will come in the third and fourth quarter majorly. We will do better than last year. Last year the base was also very much lower, but we will be growing at least 25%-30% more than last year's figures. In fact, we should be in that INR 35 crore range this year in terms of exports. That will come in the third and fourth quarters. Overall sales.
Okay.
That means going forward, year on year it will grow in terms of exports because we have tested in many countries. The results are very positive. Now we are getting new orders from different countries. But you know, as a seed business, it will be very minimal in the first few years, then it will increase. So we are in the trialing and initial stages, but year on year, we will definitely see growth in export sales, both in terms of oilseed crops and vegetables.
Okay. So far, the rabi season has already begun. If you can just give ways to how the season is looking, especially because of extended monsoon. How the next two quarters are looking like for rabi season?
Majority of the sale will come from maize. Maize sowing has not yet started because of the, as I just said, the extended monsoon. Now it will start. Some areas it has already started, but now majority of the areas will start in this month. We are very much bullish on maize and we have good inventories also. We have planned inventory for this rabi, anticipating good rabi. So we will see a good volume growth in maize even in the second half.
Okay. Last time you had given guidance that Q2, Q3, Q4 will be better than last Q2, Q3, Q4. It's not the case in Q2, at least on the profitability front. How do you see Q3, Q4?
Even in the profitability front, if you take EBITDA minus other income portion, we are positive. In terms of the percentage, even though Q3 is usually a loss quarter because it suggests a lower sale. Even in that instance, if you take the EBITDA minus other income, even the other income is lower this year in this quarter than compared to previous quarter. The depreciation was high. If you take out these components, in terms of the margins, even though it's negative margins, we have done better than this last quarter. Q3, Q4 also will do better than the last two quarters, both in terms of the revenues and in terms of the profitability.
Okay. Dividend, we announced INR 5. That has been the case historically. But at that time, we used to do even buybacks. Now with the buyback probably not happening going forward with law amendments. How are we trying to reward the shareholders?
We'll have a separate discussion in the board after that because this time we have the entire money. Even if you see the balance sheet, the results and the money all went into inventory. That we'll be utilizing in the next six to eight months, majority of the inventory, then we'll take a call on that.
Okay. I will join back if you have any more questions. Thank you. All the best.
Thank you. The next question is from the line of Sonaal Kohli from Bowhead. Please go ahead.
First of all, congratulations on your sales growth. After a pretty long period, it was very healthy in the first half. I want to question the timing. The coming crop season, because of this rain, do you expect the outcome can be different than what you may be thinking now? Or can it postpone the consumption of seeds in any way? Or lead to a permanent dent in seed demand? Not only for you, but generally for the industry.
We don't see that.
That's my first question then.
Yeah. We don't see that as of now because usually, this year we have seen an excess rainfall and most of the crops were impacted in the first quarter itself. First quarter, which are the major seeds and the sowing pattern also has taken hit. For example, in rice, majority of the rice moved to the varietal rice this time. That's the reason we have not grown much in hybrid rice. The impact is already done. Whereas in the second half, there's one positive point is that all the tanks are full, the moisture levels are pretty good. We see good rabi coming up. The season got extended by a week or two, but we don't see any threat as of now.
Sir, some parts of India are still going to rain. If it continues for a longer period, then that will make you change your view. Let's say-
We don't see that. We don't see that because now you don't get any monsoon now. If you get any, you get any cyclone rains. But earlier it was all monsoon rains. Monsoon is a continuous thing. Cyclones are once in a while. We don't see that now.
So you don't see that any dent in demand?
No.
Secondly, sir, in terms of your margins, your gross margins have been falling while your product mix has improved because cotton hasn't done that well. I'm talking not only this quarter, but from a half-yearly perspective, because I understand, your business looking from quarter to quarter doesn't make sense. But mostly from a six-month perspective, it will make a lot of sense because this is the year is gone in terms of profitability. While you were expecting a margin increase, what happened? What led to a lower gross margin, hence a lower EBITDA margin for you? How would you expect it to go forward?
Basically, if you take the margins, we are down by 1.5% - 2% in terms of the EBITDA levels. But if you take the entire cost as one to the cost of goods, the major portion, the 2%- 2.5% was rise in the cost of goods. That said that the production cost is up both in cotton and non-cotton segments also. There was a huge price hike and everything we were not able to pass it on to the farmer. Majority of that we have passed it on. In the crops, cotton, we were not able to pass it on. But this year was one of the year where we have taken a hit, but we'll definitely go back to our own previous profitable margins. Because crop—
So this increase is permanent in nature or do you expect the cost is falling or already started falling? Because the cost increase has been going up for last few years.
No, usually every year. Not every year, but when you see a three to five year-on-year, the cost of production definitely goes up as the grain price goes up, and we will pass it on to the farmer. This year, the cost of production was up by more than 15%-20%. That's the reason the entire cost was not passed to the farmer in one go, because previous year, most of the companies were not having inventories and their production was very aggressive. This year, the cost will remain same or will come down from compared to last year.
Sir, if I split it into cotton and non-cotton, were you able to pass on anything at all in cotton side?
Cotton, we were not able to pass it on. Cotton, we were not able to pass it on because the price remained there. Even though there was a few, like 3% increase in price, but actually we were not able to pass it on to the farmers because the inventory was very high. There was full of inventory in the market. The sentiment was not good for farmer. The prices were not good so that we were not able to pass it on in cotton. But in non-cotton segments, majority like 2% here and there, but majority, we were able to pass it on this one.
Oh, I see. Because of this trade deal, sir, there is a risk that the maize crop may come under a problem. Do you see anything like that?
Sorry?
There is a lot of rumor that because of U.S.-India deal that happens, the maize crop may get impacted.
As of now, we don't see much, but when you see the agriculture ministry, if you can go back to the statement which we have given a couple of months back, a month up, we wanted to double the maize production in the next five years. By 2035, we want to double maize production. Because most of the canal crops have gone up now, most of the maize is going for the industrial usage. Earlier in India, more than 70%-80% was poultry. We don't see that sort of a threat. If you see as an overall acreages also, this year, even in this market, the heavy rains fall, the maize market overall acreages were up by 10%-12% at the Indian level. That we see there.
This year, your revenue growth of 15% is possible according to you?
We already grown at 17% in terms of revenue in the first half. Second half, definitely it will be more than that.
Okay, great. Thank you so much.
Thank you. Ladies and gentlemen, if you have any questions, you may enter star and one on your phones. The next question is from the line of Siddhant from Goodwill. Please go ahead.
Yeah. Hi. I just wanted the usual updates on new GM crop. Is there any update from the government?
As of now, nothing has moved in terms of the government. It stands still there. There is sort of confusion even in the U.S.-India trade deal also, nothing is moving forward.
Okay.
We need to wait for some more time to get a clarity on that.
Understood. Thank you.
Thank you. The next question is from the line of [Anurag Jain], who is an individual investor. Please go ahead.
Good afternoon, sir. Congratulations on the good results. My query is that, of all the other listed peers which have reported their results till now, they have shown flat or slightly negative sales growth. This shows that at the industry level, the industry is still not out of the low growth or flat add-on. So what is happening at the industry level and what is the outlook for the seed industry for the next one, two years?
Basically, seed industry, when it's to a mid to long-term range, it will definitely grow in terms of the seed segment. Yes, but which crop will grow, that is more important. What we see as of now is that the maize crop and rice, these are the two segments which will grow much faster. Maize will grow much faster and rice will also grow. Whereas cotton, we don't see that sort of a growth, in terms of the segment. Companies who are dependent on one or two crops may suffer. That's the reason if you see our portfolio, we have very diversified portfolio. We are not dependent on one crop. If you see our company in the last seven, eight years, we are constantly saying that we want to decrease dependency on one crop. That's what we are seeing now.
The cotton is less than 20%, whereas earlier it was more than 70%. So in that way, we have balanced our portfolio well. Now we are also trying to increase revenues from vegetables and exports. So we are de-risking ourselves from the entire seed industry. But overall, if you see, de-risking ourselves by depending on one crop, but overall, if you see, the industry is in very good shape and it will grow well going forward. And this year there were many constraints in that one, in terms of cotton crop, illegal Bt, because there was no new technology there, that's one part. There were heavy rains. Most of the time the crop is damaged. The farmer was not able to sow the seeds. When the men do amend to select, it was not having good choice because already the season got delayed because of excess rain.
There are many constraints in that. Even the chili prices were not good earlier. Now the chili prices are also good. So these all impacted the seed business. But these are very short-term things. But when you see in mid to long-term, seed industry will be very bullish. And they say that by 2030, hybrid seed market itself will be like $6 billion from like $3 billion.
The current industry size is $3 billion, and it is expected to grow to $6 billion for the Indian seed market by 2030?
Yes.
Sir, if you allow, what is the outlook for jowar seeds, bajra seeds, and vegetable seeds in the next five years?
Vegetables are doing well. Vegetables will definitely grow going forward. Vegetables are a very big market, and year on year, the vegetables are growing at more than 18%-20%, hybrids vegetable market. That’s a very good market to be in. Whereas in bajra and jowar , there are very limited markets and stagnated markets. Bajra is a bit bigger market than jowar. We are also releasing hybrids in bajra. Even that revenue will also come in the next two to three years.
Sir, there are some smaller like oil seed segments, sunflower seeds and mustard seeds. How are they doing?
These are very small markets. When you talk about mustard, sunflower, they are there in both the crops. In sunflower, we are in the top three segments, but the market is very small. Mustard, we have started doing well in mustard. In terms of only in mustard segment, we have grown by more than 40% year-on-year. It's a small base. Going forward, mustard will also do well, but they are very limited and small markets. The biggest markets in India are maize, rice, and cotton. These vegetables, these four contribute more than 85% of our total seed market.
Sir, mustard seed market is also a small market like sunflower, or this should be much bigger than sunflower?
Mustard is slightly better than sunflower.
Okay.
Mustard, it's all varieties, but we are concentrating on hybrids. That is a very small market, but it is picking up now. Government is also focusing on mustard cultivation. So that’s another advantage for that.
And sir, just one follow-up. For the cotton seeds also, there was an expectation that government will allow the new technology. Is there any development on that, on the cotton seeds front?
As of now, nothing. I think in the last five, six months, all the negotiations and talks are all standstill. But once the U.S. and India trade deal is done, then they may talk on it. But no one is taking a call on that. But at Kaveri, even though we have done very low in cotton, going forward, with the new technologies also, we have very good hybrids which were already tested last year, and now the hybrids are already on ground now, which are giving very good results. Kaveri will grow in terms of cotton as well, going forward.
Thank you, sir.
Thank you. We have the next question from the line of Dhruv Saraf. Please go ahead.
Sir, you mentioned that 36% are from cotton seeds are from new products. How do you see scaling these products up? Has the team good response? Can you tell us which particular sales going ahead, like in one year or two years?
Majority of the revenues, we say anything in the first five years are new products. Majority of the sale in the cotton, most of the crops are in the second and third year.
Okay.
Some are in the first year also. Going forward, the majority of the contribution will be from the new products.
Okay. Any feedback for that? Any overall feedback about your products?
Cotton, as of now, it is like 100- 120 days. Crop is really doing well.
Okay. Sure. Thank you.
Thank you. Participants with questions may enter star and one. The next question is from the line of Amit Doshi from Care PMS. Please go ahead.
You mentioned that vegetable is a very strong or whatever, where it is growing very fast, 18%- 20%. We are also doing well, but the size or the contribution that we have is extremely low. Why is it that our numbers are so low, considering that the market is so huge and we have good R&D spend in the vegetable seed space as well?
So vegetable market, big market. It is a growing market year on year. But to be more successful, we need to have better product which can beat the competition. So in that way, we are putting our effort there. Now the pipeline hybrids are good, and we are scaling up the revenues in vegetables. You know that seed industry, the research itself takes 8 - 10 years to get a good product. So it is taking time, but most of the varieties or hybrids are there in trialing segments. Some are doing well. Definitely we will increase our revenues in vegetables going forward.
Okay. How many new products are in pipeline as far as vegetable is concerned? Because you mentioned in cotton, you are significant and by FY 2028 you will have all the new products in the cotton segment. But about the vegetables, if you can share.
Vegetables also, most of the products are new products, because we have launched all the products in the last couple of years, and every year we are launching and trying new hybrids. So most of the sales are from new hybrids. And vegetables, there are many. Vegetable is one, but there are tons of vegetables in that. So we have many varieties of vegetables in the pipeline. And mainly in okra, chili, gourds, and tomato. We are breeding more in these crops, and most of the hybrids will be in these crops.
Okay. Sir, you mentioned that in May, there is a huge price jump that we have seen because inventory was probably at the industry level was low. Do we see this receding in the next year, coming year for main—
Yeah.
—price rise.
I've already commented on that. This year, the prices for sure it will not go up than last year. In some crops, it's lower than last year.
It will be lower than last year. Okay. Sir, any update on that tax matter?
We filed an appeal. Once we get any sort of communication, that will be disclosed.
Okay. And any discussion on that, we were trying to, with this new tax bill, et cetera, anything that we—
Yeah.
—can get a clarity about.
That has become a continuous effort from our side as a seed industry. But we have not seen any decision coming in our favor, but it's still pending there.
Okay. Thank you.
Thank you. Participants, if you have any questions at this time, you may enter star and one on your touchtone telephones. We have the next question from [Jasmeet], an individual investor. Please go ahead.
Hello.
Yes, ma'am. Please go ahead.
Right. So in percentage terms, what is the decline in the sale of cotton volumes? Also, according to you, when do you think the market will normalize? Is there any other hybrid that can compete with the illegal variety that is being sold in the market currently?
In terms of the cotton, we are down by more than 20% in terms of the volumes. In terms of the illegal market, as of now, we don't see that it will go up next year. But governments, both all the state governments and central government, are taking a view on how to cut down illegal Bt. But we are not afraid of that because that's not legal, and we can't fight with those things in the market.
Right. In terms of hybrid paddy, was there any other reason apart from the restrictions in Punjab that has impacted the volumes?
So if you see hybrid volumes, we are up by 2%-3%, even though we lost like 500 tons in Punjab. We are gaining other markets. If you see overall hybrid market, the markets are down when compared to the previous year. The acreages were down because of the heavy rains. But this is a very short-term thing. Going down the line, hybrids will definitely come in, will take major share in price. The market will—
So the main reason is lower acres, maybe.
Sorry.
The main reason is lower acres.
Lower acres in the sense like hybrid market. Most of the hybrids move to varieties this year because of acres.
Okay. Yeah. Sir, one more thing I will ask. Do you have any hybrid that can counter, that can have the similar characteristics to the illegal seed of cotton that is being sold?
No, that is what I answered. But illegal, we cannot compete with it because these are illegal technologies which are there in the market. As a company, we do not enter into illegal things.
Sure, sir.
The technology is illegal.
Okay. Thank you.
Thank you. The next question is from the line of [Yogesh Mittal], an individual investor. Please go ahead.
Sir, thank you for giving me the opportunity again. Sir, I have heard in the call a few times that it takes about seven to eight years to launch a new seed of any variety. Just wanted to clarify that, do we mean to say that suppose any new seeds have been launched in this year, say for example, the research and development and the development process started about seven to eight years ago on those? Is that right thing to understand?
Yes. Because it's a continuous activity. We get many hybrids. We test on many things. It will take so much time. Based on the need and for that, we sometimes fast-track it. The basic time is six to seven years. The higher the research spend, the higher the amount of time you spend on it, the more the chance of getting hybrids.
Yes. On the costing part of it, do we understand that any cost being incurred to develop any new seed for last seven, eight years or continuing even now, those are being captured in the P&L?
Sure.
The actual cost of that seed, which will be for the actual production when it is sold, it is put in the cost of goods sold.
No, we don't capitalize anything. We just expense it out every year as and when.
Yes. I meant to say. I was saying the same thing. R&D expense is basically expense off, and the actual cost of the seed is captured in the cost of goods sold.
Yes.
When it is actually ready to sell.
Yes. When it is produced, it is there in the cost of goods. When it is in the research stage, it is expensed out directly.
Right. Okay. Thank you.
Thank you. To ask a question, you may enter star and one. The next question is from the line of [Balaji], who is an individual investor. Please go ahead.
Sir, good evening. Sorry, I am in traffic. My voice could not be audible. Sir, I have one question regarding tax. Is there any update regarding the tax demand we received from commissioner of tax?
No. We are there in the appeal stage, and everything is already there disclosed to exchanges. As of now, we have not received any fresh demand or fresh objections from there, or any adverse or unfavorable announcement.
Okay. Sir, I have another question regarding the recent floods in Andhra Telangana. Does it have any impact on our receivables, sir? Are we directly impacted? Is there any impact on our receivable?
Sorry?
Recently there are floods in Telangana, Andhra Pradesh. Does it have any impact on our receivables, sir?
Not much. Regarding these floods, we don't see any impact on the receivables.
Okay. Sir, I have another thing here. As my understanding, they lease some agriculture land, they produce hybrid seeds, then we sell in market. Is this a type of flood situation, is there any impact on our inventory, sir?
In terms of the production, yes, we do take production in areas. When these type of rains are there, we are also part of it. Even that's impacted. That's the reason we de-risk even production model because we give it in many states and many seasons. That's a continuous activity somewhere here or there will be there. But as of now, we don't see much of impact because most of the crops have not sown yet.
Yes, sir. We are diversifying other non-cotton production. As seen in presentation, sir, maize production is almost, it has increased drastically. Is it sustainable in the future, sir, area-wise? If you see area-wise or in value-wise.
We see a good potential in maize crop, and we do not see any threat in maize crop at all. We are very much bullish on maize and most of the harvest in maize are coming in the next year. We are not worried about that. In fact, we are very bullish and optimistic.
Yes. Sir, there is any impact of inventory return, sir? Because as seen in our cash flow statement, almost in inventory they have positive with regard to cash flow. But in receivable we are in negative. This year compared to previous year, in cash flow from operation, we are in negative side. Does it have any impact on our inventory, sir?
No. Because as I told earlier, we have produced more this year because most of the inventory levels were low, and some we were not able to sell in the harvest, especially in cotton. Other we have produced as a buffer stock. Everything will get normalized in next two or three. For six to nine months it will get normalized.
Thank you, sir. Thank you. That is all from my side. Thank you very much.
Thank you very much. Ladies and gentlemen, that was the last question. Thank you all for joining this conference call. For any further information, please be in touch with Mr. Rama Naidu from Intellect PR on +91 99202 09623. On behalf of Kaveri Seed Company Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.