Bayer CropScience Hits One-Month Low After Q1 Profit Misses Estimates

Bayer CropScience Ltd. shares fell to over a month on Friday, making it the worst-performing stock in the Nifty 500 after its first-quarter profit declined and missed analysts' estimates.

The company's net profit fell 22.8% year-on-year to Rs 254 crore in the quarter ended June 2024, according to an exchange filing. That compares to the Rs 390 crore consensus estimates provided by analysts polled by Bloomberg.

Bayer Cropscience Q1 Results: Key Highlights (Consolidated, YoY)

• Revenue down 6.3% at Rs 1,631 crore versus. (Bloomberg estimate: Rs 1,950 crore).

• Ebitda down 26.1% at Rs 314 crore. (Bloomberg estimate: Rs 514 crore).

• Margin at 19.2% versus 24.4% (Bloomberg estimate: 26.4%).

• Net profit down 22.8% at Rs 254 crore. (Bloomberg estimate: Rs 390 crore).

The company said that despite the slow progression of monsoons and the impact of low reservoir levels on its first quarter, it still achieved a 3% growth in liquidation. "Business picked up towards the end of June, coinciding with increased farming activity, indicating a positive market shift," it said. "However, supply constraints in our seed business affected availability and increased the cost of corn seeds."

Although revenue from operations declined, the company maintains optimism for the upcoming season due to promising monsoon coverage across the country. "Nevertheless, we remain sensitive to rain distribution, cropping patterns, and price pressure resulting from high industry inventories,” it said.

Shares of the company fell as much as 8.30% to Rs 6,350 apiece, the lowest level since June 26. It pared losses to trade 4.83% lower at Rs 6,590 apiece as of 11:53 a.m. This compares to a 1.02% advance in the NSE Nifty 50 Index.

The stock has risen 18.82% on a year-to-date basis and 37.07% in the last 12 months. Total traded volume so far in the day stood at 2.83 times its 30-day average. The relative strength index was at 47.64.

Out of the 10 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 3.1%.