BASF India (BASF) Q4 04/05 earnings summary

Executive summary

• FY ended 31 Mar 2005: sales including excise Rs. 7,401.8m, up 13% YoY; PBT Rs. 600.6m, up 17%; PAT Rs. 379.7m, up 11%.

• Improved results reflected better realizations, stronger Plastics & Fibers, Agricultural Products, Nutrition and Chemicals operations, lower interest costs, and cost controls.

• Recommended dividend of 60% (Rs. 6/share), absorbing Rs. 169.1m.

Financial highlights

• Net sales after excise duty were Rs. 6,590.0m vs Rs. 5,806.9m; other income was Rs. 35.0m vs Rs. 61.2m.

• PBT Rs. 600.6m vs Rs. 513.3m; PAT Rs. 379.7m vs Rs. 340.8m.

• Materials consumed Rs. 3,333.5m vs Rs. 2,592.3m; other expenses Rs. 1,475.5m vs Rs. 1,328.1m.

• EPS Rs. 13.47 vs Rs. 12.09; proposed dividend Rs. 169.1m, unchanged YoY.

Outlook and guidance

• Chemical-industry outlook was optimistic, supported by manufacturing growth, higher customer capacity utilization and planned expansions across end-user industries.

• Demand opportunities cited in consumer electronics packaging, construction, paints, paper, textiles, leather, automotive and consumer products.

• EPS production capacity expanded from 12,000 to 20,000 tons/year, with further expansion subject to market demand.

• Dispersions and specialty chemicals were expected to improve; Nutrition outlook was favourable; Agricultural Products remained dependent on monsoon conditions.