BASF INDIA 2023-24 Annual Report Analysis

Tue, 9 Jul

BASF INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BASF INDIA Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY24 as against 5.1% in FY23.
• Depreciation charges increased by 5.0% and finance costs increased by 11.6% YoY, respectively.
• Other income grew by 117.1% YoY.
• Net profit for the year grew by 39.8% YoY.
• Net profit margins during the year grew from 3.0% in FY23 to 4.1% in FY24.

BASF INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	136,448	137,675	0.9%
Other income	Rs m	384	833	117.1%
Total Revenues	Rs m	136,831	138,508	1.2%
Gross profit	Rs m	7,010	8,824	25.9%
Depreciation	Rs m	1,821	1,912	5.0%
Interest	Rs m	139	155	11.6%
Profit before tax	Rs m	5,434	7,590	39.7%
Tax	Rs m	1,405	1,956	39.2%
Profit after tax	Rs m	4,029	5,634	39.8%
Gross profit margin	%	5.1	6.4
Effective tax rate	%	25.9	25.8
Net profit margin	%	3.0	4.1

Don't Miss: Key Information for Long-term Investors

BASF INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 40 billion as compared to Rs 37 billion in FY23, thereby witnessing an increase of 8.4%.
• Current assets rose 15% and stood at Rs 63 billion, while fixed assets fell 10% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 74 billion as against Rs 67 billion during FY23, thereby witnessing a growth of 11%.

BASF INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	26,958	32,201	19.4
Current Liabilities	Rs m	37,113	40,245	8.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	66,670	73,834	10.7
Current assets	Rs m	54,623	62,945	15.2
Fixed Assets	Rs m	12,048	10,889	-9.6
Total Assets	Rs m	66,670	73,834	10.7

BASF INDIA Cash Flow Statement Analysis

• BASF INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 52.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 125.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 2 billion net cash flows seen during FY23.

BASF INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	5,308	8,072	52.1%
Cash Flow from Investing Activities	Rs m	-1,991	-4,499	-
Cash Flow from Financing Activities	Rs m	-907	-1,021	-
Net Cash Flow	Rs m	2,410	2,553	5.9%

Current Valuations for BASF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 130.1, an improvement from the EPS of Rs 93.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,595.9, stands at 43.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	3,151.9	3,180.3
TTM Earnings per share	Rs	93.1	130.1
Diluted earnings per share	Rs	93.1	130.1
Price to Cash Flow	x	16.9	16.5
TTM P/E ratio	x	24.5	43.0
Price / Book Value ratio	x	4.6	3.9
Market Cap	Rs m	123,795	124,336
Dividends per share (Unadj.)	Rs	8.0	15.0

Ratio Analysis for BASF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x during FY23. 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 49.9x during FY24, from 40.1x during FY23. 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 17.5% during FY24, from 14.9% during FY24. 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 24.1% during FY24, from 20.7% during FY23. 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 7.8% during FY24, from 6.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.5	1.6
Debtors’ Days	Days	63	67
Interest coverage	x	40.1	49.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	7.8
Return on equity	%	14.9	17.5
Return on capital employed	%	20.7	24.1

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 2,582.9 to Rs 5,595.9, registering a gain of Rs 3,013.0 or around 116.7%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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