BASF India (BASF) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001: sales rose 11% to Rs. 4,188 million; PBT increased 8% to Rs. 360.32 million and PAT rose 12% to Rs. 224.32 million, despite margin pressure.

• Cost controls and lower interest costs supported profit growth; cash flow increased 4% YoY.

• Strategic changes included transfer of textile dyes to DyStar and a proposed amalgamation with Cyanamid Agro, intended to refocus operations and build crop protection scale.

Financial highlights

• Sales were Rs. 4,188.315 million vs Rs. 3,796.548 million; total income was Rs. 4,265.906 million vs Rs. 3,838.846 million.

• PBT was Rs. 360.322 million vs Rs. 334.335 million; PAT was Rs. 224.322 million vs Rs. 199.835 million.

• EPS was Rs. 9.29; dividend recommended at 50%, including a 10% special dividend funded from compensation for the textile dyes transfer.

• Excluding the textile dyes transfer compensation, reported other income included Rs. 18.709 million; transfer consideration received was Rs. 70.16 million.

Outlook and guidance

• Cyanamid Agro amalgamation, effective appointed date 1 Apr 2001 subject to approvals, was expected to generate crop protection sales and profit synergies.

• Crop protection demand outlook depended on a normal monsoon; management planned stronger brand investment, biotechnology initiatives, services and exports.

• Dispersions outlook was positive over the medium term on demand for high-performance chemicals and infrastructure growth.

• Styrene prices stabilized in H2; cost-cutting measures were expected to have their full impact from FY 2001-02.

• The company set a long-term Vision 2015 centered on growth, investment, technology, customer service and returns on capital.