Published : 3 weeks ago, on 12/11/2024

(Reuters) – Chemicals maker BASF India 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 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.

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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 37.67 23.94 11.81 28.60 Hold 1 1.38 0.18

Coromandel 26.05 16.69 5.65 14.31 Buy 9 0.96 0.34

International Ltd

SRF Ltd 44.77 22.86 12.99 21.70 Hold 26 1.06 0.31

Deepak Fertilisers 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

(Reporting by Ashish Chandra and Yagnoseni Das in Bengaluru; Editing by Rashmi Aich)