BASF India (BASF) Q4 96/97 earnings summary

Executive summary

• FY ended 31 Mar 1997 income rose 11% to Rs 2,710.15m; gross profit before depreciation and interest increased 32% to Rs 504.14m, while PBT fell to Rs 152.72m from Rs 223.91m.

• PAT was Rs 161.72m, including a Rs 29.20m prior-years’ tax adjustment; EPS was Rs 11.89 pro rata on expanded capital, and a 30% dividend was recommended.

Financial highlights

• Sales were Rs 2,546.49m vs Rs 2,316.05m; technical advisory service fees were Rs 106.81m vs Rs 99.77m, and miscellaneous income was Rs 56.85m vs Rs 23.85m.

• Depreciation rose to Rs 132.92m from Rs 52.74m and interest to Rs 218.50m from Rs 106.24m, reflecting Mangalore project charges and higher funding costs.

• Export sales were Rs 168.02m vs Rs 189.87m; exports of own-manufactured products increased to Rs 163.38m from Rs 146.27m.

• Cash flow from operations increased 16% to Rs 110.01m; cash and cash equivalents closed at Rs 20.81m vs Rs 8.92m.

Outlook and guidance

• Styropor capacity expansion from 3,576 tpa to 7,300 tpa was completed, with commercial production starting in Mar 1997; increased Acidol dye availability from Mangalore was expected to lift exports.

• Tamol, Dispersions and ongoing capital expenditure projects were progressing to schedule; Bavistin FL formulation was on hold due to changed market conditions.

• Crop-protection product development and new molecules were intended to support profitability and market share; energy-saving studies and projects were also planned.