India's Bayer CropScience Q1 profit falls on sluggish demand

UPL

08/08/2024 13:25

BENGALURU, Aug 8 (Reuters) - Bayer CropScience  BAYE.NS , the Indian unit of German drug and pesticide maker Bayer
AG  BAYGn.DE , reported a 22.6% fall in its first-quarter profit on Thursday due to sluggish demand for its crop-protection
products.
    The company's profit for the April-June quarter declined to 2.54 billion rupees ($30.3 million), while revenue dropped
by 6.2% to 16.31 billion rupees from 17.4 billion rupees a year earlier.
    For further results highlights, click  FWN3JV18B .

    KEY CONTEXT
    Agrochemical and fertilizer companies experienced a lackluster performance in the first quarter due to factors such as
excessive inventory in the domestic market, leading to continuous pressure on volume and margins.
    Peer UPL  UPLL.NS  posted a bigger-than-expected quarterly loss as it took a hit from rising input costs.
    
    PEER COMPARISON 
                                  Valuation (next 12   Estimates (next 12    Analysts' sentiment              
                                  months)              months)                                                
                      RIC         PE     EV/EBITDA     Revenue     Profit    Mean     # of     Stock to       Div yield (%)
                                                       growth (%)  growth    rating*  analyst  price target   
                                                                   (%)                s        **             
 Bayer CropScience     BAYE.NS    36.05  26.12         11.32       12.35     BUY      7        1.14           2.02
 Ltd                                                                                                          
 PI Industries Ltd     PIIL.NS    38.61  26.18         15.55       4.90      BUY      24       1.06           0.34
 Rallis India Ltd      RALL.NS    37.44  18.10         11.56       24.65     SELL     14       1.41           0.69
 UPL Ltd               UPLL.NS    19.04  7.55          7.43        NULL      BUY      23       0.93           0.18
 

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE
 
    
    -- All data from LSEG IBES
    -- $1 = 83.9280 rupees


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BAYER CROP STOCK APRIL-JUNE    https://tmsnrt.rs/3WVO2eH
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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Yagnoseni.Das@thomsonreuters.com;))