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Bayer
CropScience standalone net sales declined 8.00% to Rs 954.90 crore during
Q3FY24 compared to Q3FY23. Operating profit margin has jumped from 8.23% to
13.39%, leading to 49.77% rise in operating profit to Rs 127.90 crore. Raw material cost as a % of total sales (net
of stock adjustments) decreased from 46.40% to 45.05%. Purchase of finished goods cost fell from
5.48% to 2.14%. Employee cost decreased
from 16.03% to 14.10%. Other expenses
rose from 22.82% to 22.87%.
Other
income fell 3.95% to Rs 14.6 crore.
PBIDT rose 41.65% to Rs 142.5 crore.
Provision for interest fell 8.82% to Rs 3.1 crore.
PBDT rose
43.42% to Rs 139.4 crore. Provision for
depreciation rose 6.29% to Rs 15.2 crore.
Profit
before EO grew 49.82% to Rs 124.20 crore.
The company reported nil EO items during the quarter compared to EO
income of Rs 100.7 crore. PBT after EO fell 32% to Rs 124.2 crore.
Exceptional
item for the quarter and nine months ended December 31, 2022 and year ended
March 31 , 2023 represents profit on sale of its Environmental Science Business
(Divested Products) which offers solutions to control pests, diseases, and
weeds in non-agricultural areas to 2022 ES Discovery India Private Limited
(ESDIPL) on a slump sale basis effective October 1, 2022 pursuant to the
approval accorded by the Board at its meeting held on September 28, 2022.
Pending transfer of product and import registrations in its favour, ESDIPL has
entered into an interim arrangement to procure the Divested Products from the
Company for further sale/ distribution. The registration authority has approved
transfer of product and import registrations in favour of ESDIPL vide its
letter dated October 10, 2023.
Provision
for tax was expense of Rs 31.1 crore, compared to Rs 49.1 crore. Effective tax rate was 25.04% compared to
26.74%.
Profit
after tax fell 30.78% to Rs 93.10 crore.
Promoters’
stake was 71.43% as of 31 December 2023 compared to 71.43% as of 31 December
2022.
Commenting on the quarterly performance,
Simon Wiebusch, Vice Chairman/Managing Director and CEO, BCSL said, “An erratic monsoon led to low water
reservoir levels. The resulting crop shifts and missed sprays, had an
unfavorable impact on our quarterly sales performance owing to lower volumes
and sales returns. While Crop Protection liquidation has been sluggish on the
back of the weak season, we actively managed rebates and discounts and thus
maintained our margins to a large extent. A more diversified corn footprint
supported seeds sales. We continue to steadily expand our efforts in support of
the Government’s collectivization endeavors by reaching out to 3000+ Farmer
Producer Organizations (FPOs), of which 10 belong to women, with BCSL
supporting the creation of over 110 FPOs in the country. Also, we continue to
focus on Better Life Farming as our extended smallholder farmer go to market.”
Simon Britsch, Chief Financial
Officer, BCSL said,
“We continued our efforts and focused on optimizing our operating expenses,
achieving sizable efficiencies in the past 9 months. We were thus able to
expand our profit margins in a difficult market environment. While managing
operating expenses, we continue to make significant investments into future
growth and market reach.”
For year-to-date (YTD) results
analysis
Net sales
(including other operating income) of Bayer CropScience has increased 3.72% to
Rs 4,311.70 crore. Operating profit
margin has jumped from 17.28% to 19.89%, leading to 19.35% rise in operating
profit to Rs 857.40 crore. Raw material cost
as a % of total sales (net of stock adjustments) increased from 48.45% to
53.79%. Purchase of finished goods cost
fell from 4.87% to 2.65%. Employee cost
decreased from 10.30% to 7.55%. Other
expenses fell from 17.98% to 14.99%.
Other
income up 18.98% to Rs 51.4 crore. PBIDT
rose 19.33% to Rs 908.8 crore. Provision
for interest fell 2% to Rs 14.7 crore.
PBDT rose
19.76% to Rs 894.1 crore. Provision for
depreciation rose 10.88% to Rs 58.1 crore.
Profit
before EO grew 20.43% to Rs 836.00 crore.
The company reported nil EO items during the period compared to EO
income of Rs 100.7 crore. PBT after EO fell 32% to Rs 124.2 crore.
Provision
for tax was expense of Rs 191.5 crore, compared to Rs 195.2 crore. Effective tax rate was 22.91% compared to
24.56%.
Profit
after tax rose 7.47% to Rs 644.50 crore.
Promoters’
stake was 71.43% as of 31 December 2023 compared to 71.43% as of 31 December
2022 .
The stock
trades at Rs 6064
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Bayer
CropScience: Results
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|
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2312 (03)
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2212 (03)
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Var. (%)
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2312 (09)
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2212 (09)
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Var. (%)
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2303 (12)
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2203 (12)
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Var (%)
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Net Sales
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954.90
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1037.90
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-8
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4311.70
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4157.20
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4
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5139.70
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4734.40
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9
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|
OPM (%)
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13.4
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8.2
|
|
19.9
|
17.3
|
|
18.0
|
17.1
|
|
|
OP
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127.90
|
85.40
|
50
|
857.40
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718.40
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19
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924.20
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811.10
|
14
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Other Income
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14.60
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15.20
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-4
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51.40
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43.20
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19
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63.90
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54.60
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17
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PBDIT
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142.50
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100.60
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42
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908.80
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761.60
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19
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988.10
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865.70
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14
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Interest
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3.10
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3.40
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-9
|
14.70
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15.00
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-2
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22.30
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12.90
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73
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PBDT
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139.40
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97.20
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43
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894.10
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746.60
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20
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965.80
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852.80
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13
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Depreciation
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15.20
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14.30
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6
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58.10
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52.40
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11
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79.50
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64.50
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23
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PBT before EO
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124.20
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82.90
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50
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836.00
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694.20
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20
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886.30
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788.30
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12
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EO income
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0.00
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100.70
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0
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0.00
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100.70
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0
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103.80
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58.50
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0
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PBT after EO
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124.20
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183.60
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-32
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836.00
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794.90
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5
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990.10
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846.80
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17
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Tax
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31.10
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49.10
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-37
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191.50
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195.20
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-2
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231.90
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201.50
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15
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PAT
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93.10
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134.50
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-31
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644.50
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599.70
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7
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758.20
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645.30
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17
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PPI
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0.00
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0.00
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0
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0.00
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0.00
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0
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0.0
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0.0
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0
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PAT after PPI
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93.10
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134.50
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-31
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644.50
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599.70
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7
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758.20
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645.30
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17
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EPS (Rs)*
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#
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#
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#
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#
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151.0
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133.7
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* Annualized on equity of Rs 44.94 crore. Face Value: Rs 10
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# EPS cannot be annualized due to seasonality in business
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EO: Extraordinary items, LP: Loss to Profit. PL: Profit to loss
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EPS is calculated after excluding EO and relevant tax
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Figures in Rs crore
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Source: Capitaline Database
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