BASF INDIA = Q1 FY2011 RESULT = VERY GOOD PROFITABILITY = ON AMALGAMATION = FY 11 PROMISING

BASF

INDIA LTD

Q1 FY 2011 RESULTS

COMPARISON

BASF INDIA LIMITED  has declared its results for Q1 FY 2011 – which show significant improvement over the previous quarters. The results are analyzed below :

Net Sales for Q1 FY11 are higher by a huge 91.2% to Rs.659.84 cr – compared to Rs.345 cr in previous Qtr – and by 72.7% compared to Q1 FY 2010 (Rs.382.18 Cr). The annualized Net sales (multiplied by 4) is higher by 91% compared to the net sales of FY2010 (Rs.1381.69     Cr).

The increase in Sales, profit, EPS etc appears to be on account of improved sales in existing lines of business, and also on sales due to the amalgamation of Ciba Group Companies in India with BASF India Limited. Hence, previous quarter’s figures do not seem to be exactly comparable with current quarter’s figures.

Total Expenditure has also increased in Q1 FY11 by 79.7% (to Rs.589.87Cr)- compared to previous qtr (Rs.328.33 Cr) – and by 83.9% compared to Q1 FY2010(Rs.        320.78 Cr). Its annualized figure is higher by 90% compared to 2010 expenditure of Rs.1241.93 Cr.

Net Profit      has increased in Q1 FY11 by 365.8% to Rs.48.86 Cr from Rs.10.49 Cr in previous Quarter – and by 19% compared to Q1 FY10 (Rs.41.05 Cr). Annualised Net profit has increased by 101.9% compared to FY2010 net profit of Rs.96.81 Cr.

Paid Up Equity Has increased to Rs. 40.77 Cr in q1 FY11 from Rs. 28.19 Cr in Q1 FY10.

Basic EPS  has increased to Rs.11.99 from previous Quarter’s EPS of Rs.2.57 – but has come down from Q1 FY10 quarter’s EPS of Rs.14.56 by 17.7%. But, Q1 FY10 has Lower equity of Rs.28.19 Cr, while Q1 FY11  has higher equity of Rs.40.77 Cr.

PE RATIO : However, at current market price of Rs.450, the annualized EPS of Rs.49.96 (i.e., 11.99 x 4) gives out a PE Ratio of just 9.01 – which indicates that there is good scope for price appreciation, if current trend is maintained /improved in the rest of the year.

COMPANY SAYS : “Our results in the first quarter signify continued improvement in customer demand and success of our products and innovations in the market. Sales in our Performance Products segment increased significantly due to higher demand from the industry and synergies derived from the integration of Ciba Group Companies in India”, said Mr. Prasad Chandran, Chairman &  Managing Director, BASF India Limited.  

Quarterly results in Figures :

BASFINDIA	Jun-10	Mar-10	dif%1	Jun-09	dif%2	fy10-n.c	dif%3
Net Sales	65984	34507	91.2	38218	72.7	138169	91
Other Optg Incom	377	417	-9.6	197	91.4	1245	21.1
SIT&WIP	-9310	-3817	143.9	-5930	57	-4759	682.5
Raw Materials	29041	14390	101.8	17992	61.4	62927	84.6
Traded Goods	27776	12208	127.5	11918	133.1	31258	255.4
Employees Cost	3715	3104	19.7	2655	39.9	10878	36.6
Depreciation	894	851	5.1	687	30.1	2608	37.1
Other Expdr	6871	6097	12.7	4756	44.5	21281	29.1
Total Expdr	58987	32833	79.7	32078	83.9	124193	90
P.Operations	7374	2091	252.7	6337	16.4	15221	93.8
P B  I&EI	7374	2091	252.7	6337	16.4	15221	93.8
Interest6	19	20	-5	22	-13.6	84	-9.5
P A I B B EI	7355	2071	255.1	6315	16.5	15137	94.4
P B T	7355	2071	255.1	6315	16.5	15137	94.4
Tax expense	2469	1022	141.6	2210	11.7	5456	81
P A T	4886	1049	365.8	4105	19	9681	101.9
Net Profit	4886	1049	365.8	4105	19	9681	101.9
Dividend (%)	-	80		-		80
Face Value.Rs	10	10	0	10	0	10
Paid Up Equity	4077	4077	0	2819	44.6	4077
Reserves	-	-		-		82500
Basic EPS A EI	11.99	2.57	366.5	14.56	-17.7	25	91.8
Public holding (%)	28.3	28.3	0	28.8	-1.7	28.3

ANNOUNCEMENTS

TO THE EXCHANGE

02-03-2010        BASF India Ltd has informed the Exchange that: "The Hon'ble High Court of Judicature at Bombay has sanctioned the Scheme of Amalgamation of Ciba India Limited, Diamond Dye-Chem Limited and Ciba Research (India) Private Limited ("the Transferor Companies") with BASF India Limited ("the Transferee Company") on Friday, 26th February, 2010. We have filed the copy of the High Court Order with the Office of the Registrar of Companies, Mumbai on Saturday, 27th February, 2010 and the Scheme has become effective as on Saturday, February 27, 2010. Consequently all the Transferor Companies stands dissolved without winding-up".

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