15 August 2020 Kaveri Seeds (KSCL) 1QFY21 revenue increased on account of growth in hybrid rice, selection rice and vegetable seed segments. Cotton seed volumes grew 5% despite challenges faced by the industry as illegal cotton seeds were sold in the market. EBITDA growth was higher than revenue growth due to (a) non-payment of royalty fees (of INR140m), and (b) savings on travel costs. This was partially offset by contraction in gross margin. Revenue and EBITDA were in line. Factoring in the same, we have increased our PAT estimates by 15% for FY21 and maintained FY22E estimates. Maintain KSCLs 1QFY21 revenue (standalone) was up 14% YoY to INR7,485m (v/s est. EBITDA was up 20% YoY to INR2,793m (v/s est. EBITDA margin expanded 170bp YoY to 37.3%, mainly due to savings on royalty payment. However, it was partially offset by lower gross margin, which contracted 220bp YoY to 44.