Bayer CropScience Limited (BSE: 506285) on 11 February 2021 announced its unaudited results for the quarter and nine months ended 31 December 2020. In the third quarter (Q3) of Financial Year (FY) 2020-21, Bayer CropScience Limited (BCSL) earned Revenue from Operations of Rs. 9,182 million, as compared to Rs. 8,540 million in the corresponding period of FY 2019-20. Profit before Exceptional Items and Tax stood at Rs. 1,061 million, compared to Rs. 1,612 million in the corresponding period of the previous financial year.
Commenting on the company’s quarterly performance, D. Narain, Managing Director & CEO, Bayer CropScience Limited, said, “Our third quarter was driven by double-digit sales growth in our Crop Protection products, especially in fungicides and herbicides. It was adversely affected by low commodity prices for corn in India, which caused sizeable reduction in corn acreages, especially in the late corn segment and significantly lowered sales of our corn seeds. Overall profitability for Q3 was impacted due to the drop in high margin corn seed volumes, along with impacts driven by strong customer initiatives to widen the market reach of our Crop Protection portfolio, and a non-cash actuarial effect related to employee benefits.”
For the nine months ended December 31, 2020, Bayer CropScience Limited reported Revenue from Operations of Rs. 35,276 million, compared to Rs. 31,507 million for the corresponding period in FY 2019-20. Profit Before Exceptional Items and Tax for the nine months ended December 31, 2020 stood at Rs. 7,159 million, compared to Rs. 6,590 million for the corresponding period in FY 2019-20.
Profit After Tax for the quarter and nine months ended December 31, 2020 takes into account a one-time tax expense of Rs. 1,272 million. This resulted out of orders issued by tax authorities based on the Company’s application under ‘The Direct Tax Vivad Se Vishwas Act, 2020’, eliminating several longpending disputes and litigations, which will safeguard long-term shareholder interest.
Key developments during April to December 2020, included the company’s strong efforts to scale up its new business models, including its partnerships with players across the crop value chain. In the third quarter, Bayer’s Better Life Farming global value chain initiative in India for improving rural livelihoods and promoting self-reliant agri-entrepreneurs was scaled up significantly. Currently 440 Better Life Farming centers are operational across nine states in India. Further, BCSL ensured business continuity despite the uncertainty due to Covid-19 restrictions and provided real-time crop advisory to over six million Indian farmers through digital connects in thirteen regional languages.
Sharing an outlook for the year ahead, D. Narain further stated, “Indian agriculture is seeing a rise in demand for high-quality agri-inputs that can help double farm incomes and enhance crop yields. Bayer CropScience Limited reports Q3 results for FY 2020-21 ▪ Revenue from Operations of Rs. 9,182 million ▪ Profit before Exceptional Items and Tax of Rs. 1,061 million - 2/2 - committed to support farmers with innovative products and solutions to accelerate their crop productivity and farm profitability and improve the livelihoods of rural farming communities.”
