Bayer CropScience has posted a profit of Rs 169.8 crore for the quarter ended September 2019, following brisk business in the Kharif season. The healthy result was also aided by the merger with Monsanto India Ltd, and the adoption of the new tax regime.
The company has computed income tax at the revised rate (at 25.17 per cent, inclusive of surcharge and cess) this financial year.
The merged entity includes Bayer Crop Science and Monsanto’s listed and unlisted businesses.
The profit after tax for the merged entity in the September quarter stood at Rs 169.8 crore as against Rs 166.8 crore in the same period last year.
The company stated in a note that the “Scheme of Amalgamation” of Monsanto India Limited (MIL) with Bayer CropScience Limited (BCSL) became effective on September 16, 2019. The Q2 results ended September 30, 2019 include results of erstwhile MIL. The results for the quarter ended September 30, 2018 also include results of erstwhile MIL from June 7, 2018 (the date on which Monsanto Company, USA was acquired by Bayer AG) and are therefore these results are not comparable.
Commenting on the financial results, D Narain, Managing Director, Bayer CropScience, said, “In Q2, our business recovered from the slow onset of monsoons with a good Kharif planting season and was aided by strong performances in key crops, including corn and vegetables.”
Sharing the company's future outlook, Narain said, “While post-monsoon non-seasonal rain in key markets has caused crop damages, with the overall improvement in water availability across the country, we expect a favourable Rabi season.”
During the first half ended September, the merged entity's revenue from operations stood at Rs 2,296.7 crore, compared with Rs 2,140 crore for the corresponding period in 2018-19. Profit before exceptional items and tax for the H1 ended September 30, 2019 stood at Rs 497.8 crore, compared with Rs 491.3 crore for the corresponding period in 2018-19.