Bayer CropScience (506285) Q4 11/12 earnings summary

Executive summary

• FY2011-12 total revenue was ₹23,176m versus ₹21,578m; PAT rose to ₹1,390m from ₹1,316m, despite a ₹579m exceptional charge.

• Innovation-led crop protection, seed launches and growth in Environmental Science supported performance; the Indian crop protection market slowed to single-digit growth.

Financial highlights

• Net revenue from operations was ₹22,723m versus ₹21,373m; other income increased to ₹453m from ₹205m.

• Profit before finance costs, depreciation, exceptional items and tax was ₹2,980m versus ₹2,436m; profit before exceptional items and tax reached ₹2,623m versus ₹2,026m.

• PBT was ₹2,044m versus ₹1,988m; PAT was ₹1,390m versus ₹1,316m, a reported increase of 5.62%.

• Exceptional items were ₹579m versus ₹38m, including Thane demolition and remediation expenditure following cessation of manufacturing.

• Export sales (FOB) were ₹3,096m versus ₹2,363m.

Outlook and guidance

• Crop protection outlook remained positive, supported by farm incomes, quality-focused agriculture, herbicide use and demand for fungicides in horticulture.

• Lesenta and Solomon insecticides were planned for launch in H2 2012; Quickbayt was expected following approval for Environmental Science use.

• An extensive product pipeline, distribution reach and more than 3,500 sales managers and field advisers were expected to support growth from 2012 onward.