Chemicals maker BASF India Q2 profit falls 14% on higher input costs

SRF

12/11/2024 09:33

Nov 12 (Reuters) - Chemicals maker BASF India  BASF.NS  posted a 14.2% drop in second-quarter
profit on Tuesday, hurt by higher input costs amid the Middle East crisis.
    Net profit fell to 1.28 billion rupees ($15.2 million) for the three months ended Sept. 30, from 1.49
billion rupees a year earlier.
    The Indian arm of Germany's BASF  BASFn.DE  saw its revenue from operations rising 14.5% to 42.11
billion rupees.
    However, its expenses surged 16% to 40.95 billion rupees, owing to a 38% rise in input costs. 
    For further highlights, click  urn:newsml:reuters.com:*:nFWN3MJ0AC

KEY CONTEXT
    
    The materials segment of BASF India, which comprises of its performance materials & monomers
businesses used in segments such as transportation, appliances and footwear, reported a 27% rise in
revenue. 
    The agriculture solution segment, which includes insecticides, herbicides, fungicides among others,
grew nearly 6%.
    Analysts have also flagged that chemical companies could face higher expenses due to an increase in
container and freight costs amid the Middle East crisis.

PEER COMPARISON
    
   
                                 Valuation (next  Estimates (next 12   Analysts' sentiment           
                                   12 months)           months)                                      
                     RIC         PE      EV/EBIT  Revenue   Profit     Mean      No of     Stock to  Div
                                         DA       growth %  growth %   rating*   analysts  price     yield
                                                                                           target**  (%)
 BASF India Ltd       BASF.NS     37.67    23.94   11.81      28.60    Hold             1    1.38     0.18
 Coromandel           CORF.NS     26.05    16.69    5.65      14.31    Buy              9    0.96     0.34
 International Ltd                                                                                   
 SRF Ltd              SRFL.NS     44.77    22.86   12.99      21.70    Hold            26    1.06     0.31
 Deepak Fertilisers   DPFE.NS     20.50     9.73    9.69      35.15    Buy              1    0.92     0.64
 and Petrochemicals                                                                                  
 Corp Ltd                                                                                            
     
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE
            
    
-- All data from LSEG IBES

-- $1 = 84.4025 Indian rupees    

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BASF India Sept Qtr 2024 vs Peers    https://tmsnrt.rs/3AByaW8
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 (Reporting by Ashish Chandra and Yagnoseni Das in Bengaluru; Editing by Rashmi Aich)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))