BASF India (BASF) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 sales rose 39% and profit after tax rose 26%; results included a Rs 70 million plant impairment charge, while merger integration supported agricultural business growth.

• Dividend of 50% (Rs 5 per share) was recommended on the expanded share capital; EPS was Rs 10.02.

Financial highlights

• Sales were Rs 5,843.88 million versus Rs 4,190.06 million in FY 2000-01; profit before exceptional item was Rs 455.70 million, up 26%.

• After Rs 70 million asset impairment, PBT was Rs 385.70 million versus Rs 360.32 million; PAT was Rs 282.47 million versus Rs 224.32 million.

• Basic and diluted EPS was Rs 10.02 versus Rs 9.29; cash profit was Rs 573 million, up 32% YoY.

• Exports were Rs 584 million versus Rs 250 million; total assets were Rs 4,321 million and borrowings Rs 1,080 million at year-end.

Outlook and guidance

• Agricultural Products & Nutrition was positioned for growth, supported by new crop-protection molecules, rising demand for nutrition products and a more promising Asian market outlook.

• Speciality Chemicals was expected to grow significantly in the ensuing year, with favourable export prospects; paper, construction and detergent products offered growth opportunities.

• Leather chemical demand was expected to improve from Q2 of the current year; medium-term opportunity centred on environment-friendly and high-performance speciality products.

• EPS demand could benefit from cold-chain development and air-conditioner growth; capacity debottlenecking and cost reductions were underway.