Bayer CropScience Ltd. shares gained more than 6 percent on Tuesday after the company reported a growth of 8 percent in its June quarter net profit compared to the same period last year.

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Bayer CropScience posted a 4 percent rise in its revenue to Rs 1,740 crore for the June quarter, as against Rs 1,667 crore in the corresponding quarter a year ago.

While operating profit or EBITDA grew by 8 percent from last year, EBITDA margin expanded by 80 basis points on a year-on-year basis.

The management said that Bayer continues to see strong growth in its sales, along with a liquidation of its Crop Protection portfolio.

The price normalization in a few products did impact the company’s sales in the quarter ended on June 30, 2023, to some extent, while its volume growth was driven by the company’s portfolio and better acreages in the Kharif crop.

Brokerage firm Prabhudas Lilladher has an ‘Accumulate’ rating on Bayer CropScience, with a price target of Rs 4,720 per share on it, depicting a small 1.9 percent downside from the stock’s last traded price.

The brokerage believes that the company has witnessed strong growth in its corn hybrid seeds, which was largely led by better maize acreages.

The high inventory provisions in the Crop Protection segment are likely to have dented the company’s gross margins, the brokerage said.

Shares of Bayer CropSciences ended 5.8 percent higher at Rs 4,859. The stock is flat on a year-to-date basis.