Bayer CropScience Q2 profit rises to Rs 163cr

Bayer CropScience Ltd has posted a 5.51 per cent rise in net profit at Rs 162.6 crore in the September quarter.

The large-cap company that operates in the agrochemicals sector had a net profit of Rs 154.1 crore in the same quarter previous fiscal, according to a regulatory filing.

Its total income increased to Rs 1,451.9 crore in the second quarter of the current fiscal from Rs 1,365.1 crore in the year-ago period.

The major division of the multinational company in India is crop science and it works in the fields of environmental science, seeds, and crop protection. In India, Bayer is the industry leader in crop protection.

Bayer CropScience said it concluded the sale of a part of its seeds distribution portfolio consisting of mustard, millet, cotton and sorghum seeds during the third quarter of 2021-22 fiscal.

"Considering this, the portfolio-adjusted revenue from operations grew by 8 per cent for Q2 and 14 per cent for H1 of the 2022-23 fiscal respectively," the company said.

Bayer CropScience Executive Director Simon-Thorsten Wiebusch said, "Our continuing revenue growth in Q2 was driven largely by strong demand and product liquidation of our crop protection portfolio despite continuing supply chain challenges and a tough hybrid rice season."

Supportive commodity prices led to better acreages and strong sales of corn seeds. A near-normal monsoon in most parts of the country except for the states of Uttar Pradesh, Bihar and West Bengal also aided positive demand momentum, Wiebusch said.

"Our efforts of reaching larger segments of smallholder farmers through alternate go-to-market initiatives such as Sahbhaagi and Better Life Farming Centers are also steadily gaining ground," he added.

Simon Britsch, Chief Financial Officer, Bayer CropScience, said, “We have maintained our growth momentum in H1. We continue to invest in our business growth opportunities and focus on sustaining margins despite continuing challenges associated with global supplies and rising costs.”

The Board of Directors has also approved an interim dividend payment of Rs 100 per equity share for 44,942,092 shares of Rs 10 each for the financial year ending March 31, 2023. The record date for the purpose of determining the entitlement for payment of the interim dividend is fixed as November 19, 2022.

Due to the recent Gazette Notification on the application of Glyphosate, the Bayer CropScience management sees a potential impact in the short term on the sale of Glyphosate and is working with all stakeholders to understand the implications and to best serve the critical weed management needs of farmers, the company said in a press release.