Bayer Cropscience

For pesticide making companies, the first half is usually the best and Q2 is seasonally the best after which the numbers kind of start tapering off. So after the loss making numbers of Q4, the company has bounced back with vigour in Q1FY13  and though, YoY, the performance was good for Q2, sequentially, it was muted. On a drop of 11% in net sales at Rs.800 crore, the company posted a 10% rise in net profit at Rs.98 crore. This was thanks to the tight leash on operating costs and lower charges for demolition and remedial activities at its Thane which has now been sold.

The stock was up on Friday after it announced having received the balance consideration of Rs.730 crore from the sale of its property at Thane in Maharashtra to Agile Real Estate. The aforesaid property is approximately 100 acres. The company is the Indian subsidiary of Bayer Germany which holds 71% as at end of Sept 2012. The company has negligible debt, a tight working capital cycle and strong reserves at Rs.940 crore which will be further buttressed by recent land sale. Once again, based on the seasonal demand, the second half for such agri based companies is usually slow.