BAYER CROPSCIENCE 2022-23 Annual Report Analysis

Mon, 17 Jul

BAYER CROPSCIENCE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BAYER CROPSCIENCE Income Statement Analysis

• Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.8% in FY23 as against 18.3% in FY22.
• Depreciation charges increased by 23.3% and finance costs increased by 72.9% YoY, respectively.
• Other income grew by 21.7% YoY.
• Net profit for the year grew by 17.5% YoY.
• Net profit margins during the year grew from 13.6% in FY22 to 14.8% in FY23.

BAYER CROPSCIENCE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	47,344	51,397	8.6%
Other income	Rs m	599	729	21.7%
Total Revenues	Rs m	47,943	52,126	8.7%
Gross profit	Rs m	8,643	10,190	17.9%
Depreciation	Rs m	645	795	23.3%
Interest	Rs m	129	223	72.9%
Profit before tax	Rs m	8,468	9,901	16.9%
Tax	Rs m	2,015	2,319	15.1%
Profit after tax	Rs m	6,453	7,582	17.5%
Gross profit margin	%	18.3	19.8
Effective tax rate	%	23.8	23.4
Net profit margin	%	13.6	14.8

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BAYER CROPSCIENCE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 20 billion as compared to Rs 21 billion in FY22, thereby witnessing an decrease of -3.0%.
• Current assets rose 4% and stood at Rs 41 billion, while fixed assets rose 14% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 75 billion as against Rs 70 billion during FY22, thereby witnessing a growth of 8%.

BAYER CROPSCIENCE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	25,243	27,121	7.4
Current Liabilities	Rs m	20,729	20,114	-3.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	69,617	75,159	8.0
Current assets	Rs m	39,891	41,303	3.5
Fixed Assets	Rs m	29,726	33,856	13.9
Total Assets	Rs m	69,617	75,159	8.0

BAYER CROPSCIENCE Cash Flow Statement Analysis

• BAYER CROPSCIENCE's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 182.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 833 million, an improvement of 29.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 794 million from the Rs -4 billion net cash flows seen during FY22.

BAYER CROPSCIENCE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,155	6,093	182.7%
Cash Flow from Investing Activities	Rs m	642	833	29.8%
Cash Flow from Financing Activities	Rs m	-7,033	-6,132	-
Net Cash Flow	Rs m	-4,236	794	-

Current Valuations for BAYER CROPSCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 168.7, an improvement from the EPS of Rs 143.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,679.2, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 25.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,053.5	1,143.7
TTM Earnings per share	Rs	143.6	168.7
Diluted earnings per share	Rs	143.6	168.7
Price to Cash Flow	x	31.5	25.7
TTM P/E ratio	x	34.7	27.7
Price / Book Value ratio	x	9.1	7.9
Market Cap	Rs m	229,849	215,366
Dividends per share (Unadj.)	Rs	150.0	130.0

Ratio Analysis for BAYER CROPSCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.9x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 45.4x during FY23, from 66.6x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 28.0% during FY23, from 25.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 37.3% during FY23, from 34.1% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.4% during FY23, from 9.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	2.1
Debtors’ Days	Days	77	69
Interest coverage	x	66.6	45.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	10.4
Return on equity	%	25.6	28.0
Return on capital employed	%	34.1	37.3

To see how BAYER CROPSCIENCE has performed over the last 5 years, please visit here.

BAYER CROPSCIENCE Share Price Performance

Over the last one year, BAYER CROPSCIENCE share price has moved down from Rs 5,284.0 to Rs 4,679.2, registering a loss of Rs 604.9 or around 11.4%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for BAYER CROPSCIENCE and quarterly results for BAYER CROPSCIENCE)