BASF India Ltd posts standalone net loss of Rs38.37cr in Q3FY19 vs. net profit of Rs6.92cr in Q3FY18: Misses Estimates

The company’s standalone revenue stood at ~Rs1,405cr, up 9.9% yoy, but down 16.15% qoq.

Jan 23, 2019 09:01 IST India Infoline Research Team

BASF India Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,404.99 9.9
EBITDA -11.85 -
EBITDA Margin (%) -0.8 [615]
Net Loss (adjusted) 38.37 -
***EBITDA margin change is bps
BASF India Ltd's revenue for Q3FY19 came in at ~Rs1,405cr, an increase of 9.9% yoy. BASF India reported an EBITDA loss of Rs11.85cr for the quarter as against an EBITDA profit of Rs67.91cr in Q3FY18. The net loss after tax (including exceptional items) for the company came in at Rs38.37cr in Q3FY19 vs. net profit of Rs6.92cr in Q3FY18. The revenue was in line with the consensus estimate. However, EBITDA and net profit missed the consensus estimates of Rs73cr and Rs15cr, respectively.

• Revenue growth was majorly due to higher sales volume during the quarter. However, the realization is likely to remain subdued with no pass-on of high input costs as evident in the gross margin.
• The performance products segment is likely to have witnessed healthy sales volume during the quarter. Higher operating leverage led to positive EBIT for the segment during the quarter.
• Gross margin declined by ~666bps yoy to 22.2% in Q3FY19 on account of increase in input costs coupled with rupee depreciation.
• Agricultural Solutions - Segment revenue decreased by 6.0% yoy to Rs120.1cr in Q3FY19. The segment reported EBIT loss of ~Rs9.9cr during the quarter. This is majorly on account of likely subdued realizations on softer crop prices and rising levels of input costs.
• Performance Products - Segment revenue increased by 24.8% yoy to Rs654.1cr in Q3FY19. The segment reported EBIT of Rs4cr during the quarter vs. loss of Rs2.3cr in Q3FY18.
• Chemicals - Segment revenue was down 43.5% yoy to Rs58.1cr in Q3FY19. However, the segment reported significant EBIT loss of ~Rs5cr due to pressure arising from likely imported raw materials.
• Functional Materials & Solutions - Segment revenue increased by 8.2% yoy to Rs559.7cr in Q3FY19. However, there was a significant segmental loss of ~Rs25.8cr in Q3FY19 vs. profit of ~Rs15cr in Q3FY18.





Technical View:

BASF India Ltd is currently trading at Rs. 1,471, down by 53.05 points or 3.48% from its previous closing of Rs. 1,524.05 on the BSE.
The scrip opened at Rs. 1,517.70 and has touched a high and low of Rs. 1,535 and Rs. 1,451 respectively. So far 50,736 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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