Bayer CropScience surges 10% on strong Q4 results; stock nears record high

The stock is trading close to its all-time high level of Rs 5,050, hit in intra-day deal on the BSE on June 2, 2017

Shares of Bayer CropScience surged 10 per cent to Rs 4,875, also its fresh 52-week high, on the BSE on Tuesday after the company reported profit before exceptional items and tax (PBET) of Rs 54.3 crore for the quarter ended March 2020 (Q4FY20), on the back of strong operational performance. The agrochemicals company had posted a loss before exceptional items and tax of Rs 95 crore in the corresponding quarter of the previous year.

The stock surpassed its previous 52-week high of Rs 4,665, touched on May 11, 2020. It is trading close to its all-time high level of Rs 5,050, hit in intra-day deal on the BSE on June 2, 2017.

The company’s revenue from operations rose 82 per cent year on year at Rs 459 crore, compared to Rs 252 crore in the same quarter of last fiscal.

The management said a good monsoon in 2019 ensured sufficient water reserves for Rabi sowing. "This coupled with stable commodity prices, favorable climate and strong portfolio performance in corn and horticulture, helped us achieve strong growth in Q4", they said.

With the ongoing Covid-19 situation, the external business environment remains uncertain in the short term. However, agriculture and food production will continue to be essential for good health and nutrition. The transformational agri-reforms announced by the government will help India become more self-reliant and food secure, they said.

The management further said that going forward, the company will focus on new business models and value chain collaborations to expand the reach of our agri-solutions, support scale-up of FPOs and digital farming solutions.

Meanwhile, the board recommended a dividend of Rs 25 per share, subject to the approval of the shareholders.

At 09:46 am, the stock was trading 6 per cent higher at Rs 4,725 on the BSE, against 1.1 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined around 27,000 equity shares changing hands on the NSE and BSE so far.