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BASF INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

BASF INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BASF INDIA Income Statement Analysis

  • Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 44.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.6% in FY19 as against 9.1% in FY18.
  • Depreciation charges decreased by 4.1% and finance costs increased by 46.5% YoY, respectively.
  • Other income grew by 260.3% YoY.
  • Net profit for the year declined by 66.8% YoY.
  • Net profit margins during the year declined from 4.5% in FY18 to 1.4% in FY19.

BASF INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 54,441 60,257 10.7%
Other income Rs m 302 1,089 260.3%
Total Revenues Rs m 54,744 61,346 12.1%
Gross profit Rs m 4,972 2,756 -44.6%
Depreciation Rs m 1,534 1,471 -4.1%
Interest Rs m 1,130 1,655 46.5%
Profit before tax Rs m 2,610 719 -72.5%
Tax Rs m 145 -99 -167.9%
Profit after tax Rs m 2,465 817 -66.8%
Gross profit margin % 9.1 4.6
Effective tax rate % 5.6 -13.7
Net profit margin % 4.5 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BASF INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 21 billion as compared to Rs 21 billion in FY18, thereby witnessing an decrease of -1.5%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY18, a fall of 5.4%.
  • Current assets rose 3% and stood at Rs 26 billion, while fixed assets fell 8% and stood at Rs 12 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 38 billion as against Rs 38 billion during FY18, thereby witnessing a fall of 1%.

BASF INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 13,419 14,104 5.1
 
Current Liabilities Rs m 21,094 20,779 -1.5
Long-term Debt Rs m 3,207 3,034 -5.4
Total Liabilities Rs m 38,479 38,111 -1.0
 
Current assets Rs m 25,533 26,186 2.6
Fixed Assets Rs m 12,946 11,925 -7.9
Total Assets Rs m 38,479 38,111 -1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BASF INDIA Cash Flow Statement Analysis

  • BASF INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs -772 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 2 billion, an improvement of 11.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -950 million, an improvement of 80% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 47 million from the Rs -164 million net cash flows seen during FY18.

BASF INDIA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 2,900 -772 -
Cash Flow from Investing Activities Rs m 1,583 1,768 11.7%
Cash Flow from Financing Activities Rs m -4,647 -950 -
Net Cash Flow Rs m -164 47 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BASF INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.9, an decline from the EPS of Rs 56.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,473.8, stands at 78.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 1,257.6 1,391.9
TTM Earnings per share Rs 56.9 18.9
Diluted earnings per share Rs 56.9 18.9
Price to Cash Flow x 20.7 32.0
TTM P/E ratio x 72.0 78.1
Price / Book Value ratio x 6.0 5.2
Market Cap Rs m 79,906 73,259
Dividends per share (Unadj.) Rs 3.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BASF INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY19, from 1.2x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.4x during FY19, from 3.3x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 5.8% during FY19, from 18.4% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 13.9% during FY19, from 22.5% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 6.5% during FY19, from 9.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.2 1.3
Debtors’ Days Days 73 63
Interest coverage x 3.3 1.4
Debt to equity ratio x 0.2 0.2
Return on assets % 9.3 6.5
Return on equity % 18.4 5.8
Return on capital employed % 22.5 13.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how BASF INDIA has performed over the last 5 years, please visit here.

BASF INDIA Share Price Performance

Over the last one year, BASF INDIA share price has moved down from Rs 1,908.5 to Rs 1,473.8, registering a loss of Rs 434.8 or around 22.8%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for BASF INDIA and quarterly results for BASF INDIA)

Annual Report FAQs

What is the current share price of BASF INDIA?

BASF INDIA currently trades at Rs 3,336.9 per share. You can check out the latest share price performance of BASF INDIA here...

What was the revenue of BASF INDIA in FY19? How does it compare to earlier years?

The revenues of BASF INDIA stood at Rs 61,346 m in FY19, which was up 12.1% compared to Rs 54,744 m reported in FY18.

BASF INDIA's revenue has grown from Rs 43,223 m in FY15 to Rs 61,346 m in FY19.

Over the past 5 years, the revenue of BASF INDIA has grown at a CAGR of 9.1%.

What was the net profit of BASF INDIA in FY19? How does it compare to earlier years?

The net profit of BASF INDIA stood at Rs 817 m in FY19, which was down -66.8% compared to Rs 2,465 m reported in FY18.

This compares to a net loss of Rs -141 m in FY17 and a net loss of Rs -304 m in FY16.

Over the past 5 years, BASF INDIA net profit has grown at a CAGR of NaN%.

What does the cash flow statement of BASF INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BASF INDIA reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs -772 m as compared to Rs 2,900 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 1,768 m as compared to Rs 1,583 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -950 m as compared to Rs -4,647 m in FY18.

Here's the cash flow statement of BASF INDIA for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations-9631,9892,2112,900-772
From Investments-1,6311,993-6601,5831,768
From Financial Activity3,720-4,251-1,330-4,647-950
Net Cashflow1,126-269221-16447

What does the Key Ratio analysis of BASF INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BASF INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 4.6% in FY19 as against 9.1% in FY18.
  • Net profit margins declined from 4.5% in FY18 to 1.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.2 as compared to 0.2 in FY18.

Here's the ratio/financial analysis of BASF INDIA for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)3.86.46.19.14.6
Net Profit Margin (%)-1.6-0.7-0.34.51.4
Debt to Equity Ratio (x)0.80.80.60.20.2

Read: Latest Annual Report Analysis of BASF INDIA

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