Bayer Cropscience

Bayer Cropscience posted a good set of Q2FY15 numbers. It reported a 50% (YoY) rise in net profit at Rs.176 crore and this was on a 18% rise in total income at Rs.1241 crore. Its EBITDA showed a smart 32% rise to Rs.24 crore. The market was most enthused with the jump in EBITDA margin, which rose from 17.6% to 19.66%.

Compared to the rest in the sector, Rallis India and PI Industries, both of which reported very muted numbers, Bayer has done very well. . In terms of margins, Bayer’s margins came in best - OPM of 21.89% and NPM of 14.19%, Rallis India was slightly lower with OPM at 21.14% and NPM at 13.03% while PI Industries had a much poorer performance than both, with OPM at 18.32% and NPM at 11.48%.

The company is the Indian subsidiary of Bayer Germany which holds 68.96% stake and like a typical MNC, has negligible debt, a tight working capital cycle and strong reserves at Rs.1705 crore.