BASF India Q4 Net Profit Falls By 51%

BASF India’s operating EBITDA went down by 18.4% to Rs 32 crore in Q4FY14 against Rs 39.2 crore in same period of the last year. Further net profit of the company fell by 51% to Rs. 6.7 crore in the said quarter from Rs 13.32 crore as finance cost also grew by 27% to Rs 6.4 crore in Q4FY13.

Profitability of the company went down mainly due to sharp increase in its cost of material and finance cost during the said quarter. Cost of material for the company surged (by 88.8%) to 69% of total operating revenue in Q4FY14 against 48% in Q4FY13. However other expenses like purchase of trade goods and employee expenses grew in proportion revenue growth during the mentioned quarter.

Increase in material cost and finance cost adversely affected the company’s profit margin. The EBITDA margin of the company came down to 3% in the quarter from 5% in same quarter previous year. Further net profit margin went down to 1% in Q4FY13 from 2% in Q4FY13. 

Functional and material solution division which was earlier in plastic division (contribute to 43% of total revenue) went up by 30% to Rs 463.7 crore and performance division segment (account for 42% of total revenue) increased by 28% to Rs 446.7 crore in Q4FY14. Agriculture solution segment of the company which is seasonal in nature grew by 42.4% to Rs 123.26 crore in Q4FY14 from Rs 88.6 crore in same quarter of previous year.

On yearly basis the company performance was satisfactory. Total operating revenue of the company stood at Rs 4429.9 crore in FY14 with a considerable yearly growth of 12.7% while operating profit came up by 11.2% to Rs 213 crore in FY’14 from Rs 191.8 crore in FY’13. Moreover net profit of the company also recorded a marginal growth and stood at Rs 128 crore in FY’14 from Rs 124 crore in FY’13.