India's Bayer Cropscience post jump in Q2 profit as rainfall recovery aids demand

Date:11-06-2023

Bayer Cropscience (BAYE.NS), the Indian unit of German drug and pesticide maker Bayer AG (BAYGn.DE), reported a more than 37% jump in quarterly profit on Friday as rainfall recovery in September aided the sale of its farm products.

Profit rose to 2.23 billion rupees ($27.62 million) during the three months ended Sept. 30 from 1.63 billion rupees a year earlier.

Revenue from operations grew more than 11% to 16.17 billion rupees.

The firm also declared a dividend of 105 rupees per share.

KEY CONTEXT

A revival of seasonal rainfall in September aided sowing and other farm activities, uplifting demand for the company's products, which include herbicides and pesticides, analysts said.

Unsold stock from the last winter crop season and Chinese oversupply have kept product prices under check, analysts added, aiding volumes for agribusinesses.

The company said a "sustained focus on maintaining optimal channel inventory" helped growth in profit before tax.