Bayer Cropscience Ltd has reported a net profit of Rs.84.8 crore for the third quarter ended December 2021, despite unusual rainfall, crop blight and a challenging corn season.
The company had posted a net loss of Rs 45.1 crore in the corresponding quarter of last fiscal year.
Net revenue increased to Rs.999.9 crore in the third quarter of FY2021-22 compared to Rs.936.5 crore in the same period last year.
In a statement, the company said it had made a profit of Rs.58.5 crore from the sale of its seeds business to Crystal Crop Protection on December 1, 2021.
Expenditure remained higher at Rs 940.6 crore against Rs 830.4 crore in the said period.
The company said it had incurred expenses related to the separation of employees resulting from restructuring measures resulting from the merger of Monsanto India Ltd with Bayer CropScience.
Simon-Thorsten Wiebusch, Bayer CropScience Executive Director, commented on the performance, saying sales rose in the third quarter despite unusual rainfall, crop blight and a challenging rabi corn season.
“Growth was largely driven by our crop protection portfolio, which saw a surge in demand with double-digit liquidation growth supported by our strategy of prudent channel management and demand generation,” he said.
Overall profitability was impacted by higher input and operating costs, including the establishment of new business models to increase market reach for smallholders, corn seed yields and obsolescence effects driven by exceptional revenue from sales of the mustard, cotton, sorghum and sorghum seed, he added .
He further stated, “Improving real-time agricultural advice, efforts to farm collectivization and fostering market linkages through Producer Organizations (FPOs) and digitalization are key drivers for the transformation of Indian agriculture.”
Bayer is keen to maximize its efforts in favor of small farmers, expand the base of its Better Life Farming centers, create gender-sensitive interventions, redouble its sustainability efforts and make Indian agriculture competitive, he added.
From April to December 2021, Bayer conducted drone tests for spraying purposes in agriculture for the first time. Bayer’s global value-added initiative Better Life Farming (BLF) also formed several strategic alliances to support over five lakh small farmers across the country.
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