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BASF INDIA 2020-21 Annual Report Analysis
Wed, 31 Mar

BASF INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BASF INDIA Income Statement Analysis

  • Operating income during the year rose 25.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 320.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY21 as against 3.2% in FY20.
  • Depreciation charges decreased by 3.8% and finance costs decreased by 73.2% YoY, respectively.
  • Other income declined by 79.0% YoY.
  • Net profit for the year grew by 2316.3% YoY.
  • Net profit margins during the year grew from 0.3% in FY20 to 5.8% in FY21.

BASF INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 75,946 95,583 25.9%
Other income Rs m 851 179 -79.0%
Total Revenues Rs m 76,796 95,762 24.7%
Gross profit Rs m 2,458 10,336 320.5%
Depreciation Rs m 1,809 1,739 -3.8%
Interest Rs m 1,401 376 -73.2%
Profit before tax Rs m 99 8,400 8,384.4%
Tax Rs m -130 2,874 -2,315.5%
Profit after tax Rs m 229 5,526 2,316.3%
Gross profit margin % 3.2 10.8
Effective tax rate % -131.0 34.2
Net profit margin % 0.3 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

BASF INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 34 billion as compared to Rs 32 billion in FY20, thereby witnessing an increase of 5.9%.
  • Current assets rose 21% and stood at Rs 43 billion, while fixed assets fell 9% and stood at Rs 11 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 54 billion as against Rs 47 billion during FY20, thereby witnessing a growth of 13%.

BASF INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 12,408 17,818 43.6
 
Current Liabilities Rs m 32,497 34,426 5.9
Long-term Debt Rs m 1,471 0 -100.0
Total Liabilities Rs m 47,308 53,693 13.5
 
Current assets Rs m 35,504 42,997 21.1
Fixed Assets Rs m 11,804 10,696 -9.4
Total Assets Rs m 47,308 53,693 13.5
* 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 FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 732 million from the Rs 867 million net cash flows seen during FY20.

BASF INDIA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 5,716 4,831 -15.5%
Cash Flow from Investing Activities Rs m -870 1,819 -
Cash Flow from Financing Activities Rs m -4,638 -5,918 -
Net Cash Flow Rs m 867 732 -15.6%
* 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 127.7, an improvement from the EPS of Rs 5.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,073.6, stands at 16.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 1,754.3 2,208.0
TTM Earnings per share Rs 5.3 127.7
Diluted earnings per share Rs 5.3 127.7
Price to Cash Flow x 23.9 9.9
TTM P/E ratio x 262.9 16.2
Price / Book Value ratio x 4.0 4.0
Market Cap Rs m 49,431 71,615
Dividends per share (Unadj.) Rs 3.0 10.0
* 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 1.2x during FY21, from 1.1x during FY20. 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 improved and stood at 23.4x during FY21, from 1.1x during FY20. 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 improved and stood at 31.0% during FY21, from 1.8% during FY21. 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 improved and stood at 49.2% during FY21, from 10.8% during FY20. 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 improved and stood at 11.0% during FY21, from 3.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.1 1.2
Debtors’ Days Days 68 79
Interest coverage x 1.1 23.4
Debt to equity ratio x 0.1 0.0
Return on assets % 3.4 11.0
Return on equity % 1.8 31.0
Return on capital employed % 10.8 49.2
* 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 up from Rs 1,124.2 to Rs 2,073.6, registering a gain of Rs 949.4 or around 84.4%.

Overall, the S&P BSE SENSEX is up 74.1% 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 FY21? How does it compare to earlier years?

The revenues of BASF INDIA stood at Rs 95,762 m in FY21, which was up 24.7% compared to Rs 76,796 m reported in FY20.

BASF INDIA's revenue has grown from Rs 46,526 m in FY17 to Rs 95,762 m in FY21.

Over the past 5 years, the revenue of BASF INDIA has grown at a CAGR of 19.8%.

What was the net profit of BASF INDIA in FY21? How does it compare to earlier years?

The net profit of BASF INDIA stood at Rs 5,526 m in FY21, which was up 2,316.3% compared to Rs 229 m reported in FY20.

This compares to a net profit of Rs 817 m in FY19 and a net profit of Rs 2,465 m in FY18.

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 FY21 and stood at Rs 4,831 m as compared to Rs 5,716 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 1,819 m as compared to Rs -870 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -5,918 m as compared to Rs -4,638 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations2,2112,900-7725,7164,831
From Investments-6601,5831,768-8701,819
From Financial Activity-1,330-4,647-950-4,638-5,918
Net Cashflow221-16447867732

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 down at 10.8% in FY21 as against 3.2% in FY20.
  • Net profit margins grew from 0.3% in FY20 to 5.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)6.19.14.63.210.8
Net Profit Margin (%)-0.34.51.40.35.8
Debt to Equity Ratio (x)0.60.20.20.10.0

Read: Latest Annual Report Analysis of BASF INDIA

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