InvestorQ : Why was Bayer Cropsciences up so sharply on 07 August on the bourses?
rhea Babu made post

Why was Bayer Cropsciences up so sharply on 07 August on the bourses?

12 months ago

On 07 August, Bayer Cropsciences stock was up nearly 15% at Rs.6449 on the back of very encouraging numbers for the Jun-20 quarter. The company reported an 86% increase in its net profit at Rs.252 crore. The profits got a big boost from better monsoon which helped Bayer to boost its sales of seeds and crop protection products, as rural incomes were strong.

In fairly difficult market conditions, Bayer also reported 29% growth in total revenues at Rs.1228 crore for the Jun-20 quarter. The growth was front-ended this quarter as the preparations for Kharif started earlier this year due to Covid-19. Bayer also launched digital training and advisory for farm customers to enable greater awareness.

The company also admitted that the timely arrival of monsoon and the consistent supply of agri-inputs helped farmers procure seeds and crop protection in a timely and economical manner. Bayer also took up novel sales channels like e-commerce sale of agri inputs which allowed early demand estimates and also timely delivery.

Bayer has been a strong agri input play for a very long time. Post the acquisition of Monsanto, it has a complete array of products ranging from agri inputs to hybrid seeds covering the complete value chain including mid end and high end products for the Indian farmer. That has given the company a unique positioning and will hold them in good stead.