BASF India (BASF) Q4 03/04 earnings summary

Executive summary

• FY ended Mar. 31, 2004: sales Rs 6,533.1m and PBT Rs 513.3m, each up 11% YoY; PAT reached Rs 340.8m, up Rs 7.3m.

• Performance improved on stronger Plastics & Fibers, Agricultural Products & Nutrition and Chemicals results, lower interest costs and cost controls.

• Directors recommended a 60% dividend, or Rs 6 per share, absorbing Rs 169.1m.

Financial highlights

• Sales Rs 6,533.1m vs Rs 5,893.7m; net sales after excise Rs 5,806.9m vs Rs 5,270.6m.

• PBT Rs 513.3m vs Rs 462.5m; PAT Rs 340.8m vs Rs 333.5m; basic and diluted EPS Rs 12.09 vs Rs 11.83.

• Interest expense fell to Rs 105.2m from Rs 138.8m; depreciation was Rs 211.6m vs Rs 214.3m.

• Operating cash flow was Rs 826.3m vs Rs 2.5m; fixed-asset additions were Rs 46.7m vs Rs 116.5m.

• Export sales were Rs 510.7m vs Rs 620.1m; export goods revenue was Rs 502.7m vs Rs 614.2m.

Outlook and guidance

• EPS demand was expected to grow with GDP and market development; capacity debottlenecking targeted an increase from 12,000 to 20,000 tonnes p.a.

• Performance Products outlook benefited from textile export opportunities after the MFA phaseout; the industry also faced uncertainty and cheaper-import competition.

• Dispersions and speciality chemicals were expected to grow on demand across product segments and newer applications.

• Nutrition chemicals outlook was described as encouraging; chemicals business prospects were viewed as favourable.