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BASF INDIA 2018-19 Annual Report Analysis

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BASF INDIA 2018-19 Annual Report Analysis
Mon, 24 Jun

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 7.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 52.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.7% in FY19 as against 6.2% in FY18.
  • Depreciation charges decreased by 4.1% and finance costs decreased by 24.7% YoY, respectively.
  • Other income declined by 41.8% YoY.
  • Net profit for the year declined by 66.8% YoY.
  • Net profit margins during the year declined from 4.4% 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 55,834 60,257 7.9%
Other income Rs m 229 133 -41.8%
Total Revenues Rs m 56,063 60,390 7.7%
Gross profit Rs m 3,459 1,647 -52.4%
Depreciation Rs m 1,534 1,471 -4.1%
Interest Rs m 1,130 851 -24.7%
Profit before tax Rs m 1,025 -542 -152.9%
Tax Rs m 145 -99 -167.9%
Profit after tax Rs m 2,465 817 -66.8%
Gross profit margin % 6.2 2.7
Effective tax rate % 14.2 18.2
Net profit margin % 4.4 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 0.0%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY18, a fall of 5.4%.
  • Current assets rose 4% and stood at Rs 26 billion, while fixed assets fell 13% and stood at Rs 10 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 39 billion as against Rs 38 billion during FY18, thereby witnessing a growth of 0%.

BASF INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 13,439 14,129 5.1
 
Current Liabilities Rs m 20,669 20,663 0.0
Long-term Debt Rs m 3,207 3,034 -5.4
Total Liabilities Rs m 38,464 38,515 0.1
 
Current assets Rs m 25,108 26,101 4.0
Fixed Assets Rs m 11,448 9,992 -12.7
Total Assets Rs m 38,464 38,515 0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 57.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,345.2, stands at 71.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.5 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 1,290.1 1,392.3
TTM Earnings per share Rs 57.0 18.9
Diluted earnings per share Rs 56.9 18.9
Price to Cash Flow x 14.6 25.5
TTM P/E ratio x 71.2 71.3
Price / Book Value ratio x 5.9 5.2
Market Cap Rs m 58,220 58,234
Dividends per share (Unadj.) Rs 3.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 0.4x during FY19, from 1.9x 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 18.3% 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 9.1% 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 4.3% 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 71 63
Interest coverage x 1.9 0.4
Debt to equity ratio x 0.2 0.2
Return on assets % 9.3 4.3
Return on equity % 18.3 5.8
Return on capital employed % 22.5 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 1,952.5 to Rs 1,345.2, registering a loss of Rs 607.3 or around 31.1%.

Overall, the S&P BSE SENSEX is up 10.4% over the year.

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

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Related Views on News

BASF INDIA Announces Quarterly Results (4QFY19); Net Profit Up 30.7% (Quarterly Result Update)

May 2, 2019 | Updated on May 2, 2019

For the quarter ended March 2019, BASF INDIA has posted a net profit of Rs 863 m (up 30.7% YoY). Sales on the other hand came in at Rs 13 bn (down 1.9% YoY). Read on for a complete analysis of BASF INDIA's quarterly results.

BASF INDIA Announces Quarterly Results (3QFY19); Net Profit Down 654.5% (Quarterly Result Update)

Jan 24, 2019 | Updated on Jan 24, 2019

For the quarter ended December 2018, BASF INDIA has posted a net profit of Rs 384 m (down 654.5% YoY). Sales on the other hand came in at Rs 14 bn (up 9.9% YoY). Read on for a complete analysis of BASF INDIA's quarterly results.

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