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Prabhudas Lilladher Report
Bayer CropScience Ltd. reported better than expected results during Q1 FY23 led by strong performance from crop protection portfolio and product liquidation.
It reported revenue growth of 18% YoY to Rs 16.6 billion (our estimate: Rs 15.9 billion). Ebitda surged by 23%YoY to Rs 3.9 billion and was higher than our as well as consensus estimate.
We believe, better performance in the crop protection business was aided by higher realisations in Glyphosate. Healthy revenue growth coupled with price hikes taken in the recent past helped to partially mitigate the cost inflation.
Corn seeds business witnessed volume growth during Q1. While rice hybrids were impacted due to delay in monsoons and unfavorable weather conditions. Other expenses were higher led by cost coming back to pre-Covid levels coupled with continued investment into the strategic initiatives to expand distribution reach.
Going forward, Bayer CropScience expects challenges to persist in terms of global supply of roundup (glyphosate) in the near term.
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