Bayer CropScience (506285) Q4 2005 earnings summary

Executive summary

• FY05 sales and other operating income reached Rs 7,664.60m; profit after tax rose 41% YoY to Rs 371.47m.

• Crop protection market share increased to 16% despite a 12% industry decline, adverse weather effects, Bt cotton adoption and generic-led price erosion.

• Consolidated PAT was Rs 383.47m versus Rs 314.53m; prior-year business disposals limit comparability.

Financial highlights

• Standalone sales and other operating income were Rs 7,664.60m versus Rs 7,563.56m; other income rose to Rs 391.38m from Rs 261.72m.

• Standalone PBT before prior-period and exceptional items was Rs 815.97m versus Rs 513.27m; reported PBT was Rs 746.84m after net items of Rs 69.13m.

• Standalone PAT was Rs 371.47m versus Rs 263.61m; consolidated PAT was Rs 383.47m versus Rs 314.53m.

• Consolidated sales and other operating income were Rs 7,750.93m versus Rs 8,430.84m; the subsidiary’s previous-year business sales make the comparison less meaningful.

• Exports rose to Rs 867.76m from Rs 688.17m; export turnover in the segment disclosure was Rs 921.38m versus Rs 688.17m.

Outlook and guidance

• Crop protection market recovery depends on normal monsoon timing and distribution, commodity prices and the impact of genetically modified crops.

• Three new crop-protection product registrations were expected in 2006, with potential to add revenue through new crop-pest segments.

• Two Environmental Science launches were planned for 2006 to strengthen Vector Control and Professional Pest Control positions.