BASF India posts first profit growth in six quarters, shares jump

BASF India

09/11/2023 11:01

BENGALURU, Nov 9 (Reuters) - Chemicals maker BASF India
 BASF.NS  on Thursday reported a jump in second-quarter profit
after five-straight quarters of a fall, helped by easing input
costs, sending its shares up about 9%.    
    The Indian arm of Germany's BASF  BASFn.DE  said its profit
rose to 1.49 billion rupees ($17.90 million) in the quarter
ended Sept. 30 from 1.13 billion rupees a year earlier. 
    Weak global demand due to inventory destocking and lower
rates of Chinese supplies have hurt chemicals makers.
    Last month, peer SRF  SRFL.NS  reported a fall in profit for
the third consecutive quarter, as its mainstay chemicals
business and packaging film businesses remained under pressure. 
 
    Meanwhile, revenue from BASF India's main materials
business, which formed more than 28% of the quarterly revenue,
rose 5.3% to 10.49 billion rupees. 
    The segment's portfolio includes specialised goods for the
plastics and plastic processing industries.
    Cost of materials, which forms almost a third of the total
expenses of Mumbai-based BASF India, fell 14.5%, a first in 11
quarters
    Total revenue rose to 37.07 billion rupees from 35.82
billion rupees a year ago, first growth in four quarters.     
    Shares of BASF India closed 6.9% up after the results. 


($1 = 83.2520 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by
Subhranshu Sahu and Shinjini Ganguli)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))