Bayer CropScience drops to 52-week low, down 7% on weak Q2 results

Shares of Bayer CropScience hit a 52-week low of Rs 4,677.85, down 7 per cent on the BSE in Tuesday’s intra-day trade after the company reported 31 per cent year-on-year (YoY) decline in net profit at Rs 154.10 crore for the September quarter (Q2FY22). The agrochemicals company had posted net profit of Rs 224.6 crore in Q1FY21.

The previous 52-week low of the stock was of Rs 4,928.25 touched on March 25, 2021. At 01:16 pm; the stock was trading 6 per cent lower at Rs 4,705, as compared to 0.05 per cent decline in the S&P BSE Sensex.

In Q2FY22, the company’s revenue from operations decreased 1.2 per cent YoY to Rs 1,365 crore from Rs 1,382 crore in a year ago quarter.

The management said overall profitability was impacted by a challenging season for the company’s corn seeds portfolio and pressure on margins in crop protection business. The Kharif Corn season witnessed a drop in acreages owing to lower relative profitability ofcCorn for the grower versus other crops, as well as some weather-related events leading to higher seeds returns in the second quarter, the management said.

Crop protection business was impacted by higher material & logistics costs and product mix, partially offset by product price increases. Given unseasonal rains and subsequent slowing of liquidation in late September, the company consciously reduced its channel placements.

Meanwhile, to commemorate Bayer’s presence in India for 125 years, the board has declared a special dividend of Rs 125 per equity share of Rs 10 each for the financial year 2021-22. The record date for the purpose of determining the entitlement for payment of special dividend is fixed as November 13, 2021.

Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population.