Bayer CropScience Q3 net profit drops by 57%

Company had posted net profit of Rs 90 crore in the same quarter of 2012-13 fiscal

Bayer CropScience Ltd today posted 57% drop in net profit to Rs 39 crore for the third quarter ended December, 2013-14 fiscal, primarily due to asset impairment losses

It had posted net profit of Rs 90.31 crore in the same quarter of 2012-13 fiscal, the company said in a BSE filing.

"The company has recognised net impairment loss of Rs 15.4 crore during nine months ended December 31, 2013 (loss of Rs 17.7 crore for the quarter ended September 30, 2013 and reversal loss of Rs 2.3 million for the quarter ended December 2013)," said the agro-chemical firm.

The impairment losses are recorded as the company has signed a pact with Deccan Fine Chemicals for sale of its chemical manufacturing unit located at Ankleshwar, and another agreement for sale/transfer of assets related to poly- isocyanate unit facility to Bayer MaterialScience, it said.

"The sale pursuant to both the agreement will be recognised subject to satisfactory fulfilment of certain conditions and receipt of such government approval or permission, as may be required," the company added.

As per the BSE filing, net sales rose by 12% to Rs 626.6 crore in the October-December quarter of the current 2013-14 fiscal, from Rs 559.1 crore in the year-ago period.

The Board has approved appointment of Richard van der Merwe as Vice Chairman and Managing Director of the Company with effect from February 01, 2014, it added. He will replace Stephan Gerlich, the filing added.

Bayer CropScience operates in three business segments: crop protection, bioscience and environmental science. It offers wide range of products and extensive service backup for modern, sustainable agriculture as well as for on-agricultural applications.

The company scrip rose by 1.30% to settle at Rs 1,693.90 on the BSE.