BASF India on a standalone basis, registered sales of Rs 23,958.0 million for the second quarter, which ended on 30 September 2020, as compared to Rs 20,743.3 million in the corresponding quarter of the previous year, representing an increase of 15%.
The company reported profit before tax (before exceptional items) of Rs 1,087.5 million compared to profit before tax (before exceptional items) of Rs. 140.8 million in the prior-year quarter.
For the half-year, which ended on September 30, 2020, the company registered sales of Rs 41,655.0 million, as compared to Rs 36,880.8 million for the corresponding period of the previous year, an increase of 13%. Profit Before Tax (before exceptional items) stood at Rs 709.5 million for the half-year, compared to Profit Before Tax (before exceptional items) of Rs 316.4 million for the previous year’s corresponding period. Profit After Tax (after exceptional items) stood at Rs 3,818.3 million in the second half of 2020, compared to Profit After Tax (after exceptional items) of Rs 105.2 million posted in the corresponding period of the previous year.
The Construction Chemicals business of the company was transferred to Master Builders Solutions India effective 1 July 2020, for an overall consideration of Rs 5,951.6 million.
“The company bounced back strongly from the previous quarter impacted by the Covid-19 lockdown, and continued on its path to profitable growth. Growth in volumes and results, were registered across segments on a comparable basis to previous year with business improving on a month-to-month basis through the quarter,” said Narayan Krishnamohan, managing director, BASF India.
“Volume growth through enhanced customer-centric projects, improvements in operating margins, and efficient cost as well as working capital management enabled us to deliver higher EBITDA and PBT before exceptional items. Additionally, exceptional gain of Rs. 424 crores were recorded in this quarter dominated by gains from divestiture of the construction chemicals business effective July 1st”, he added.
The company has acquired a 100% stake in BASF Performance Polyamides India from BASF Nederland BV and BASF SE on 18 August 2020 for an aggregate consideration of Rs 3,029.0 million. According to the said transaction, BASF Performance Polyamides India (BPPIPL) is now a wholly-owned subsidiary of the company.
BPPIPL is into the business of manufacturing or trading of performance polyamides and has one manufacturing site in Panoli, Gujarat. It has a wide range of engineering plastics and serves automobiles, electrical, and consumer goods industries.
BASF has successfully partnered India’s progress for more than 125 years. As of the end of 2019, BASF had 2,431 employees in India at 11 production sites and 34 offices throughout the country. The Innovation Campus Mumbai and the Technical Support Centre in Mangalore are part of BASF’s global technology platform. In 2019, BASF registered sales of approximately EUR 1.3 billion to customers in India.