BASF India Q2 net profit tanks 94.58% to Rs 9.38 cr

BASF India Tuesday reported 94.58 per cent decline in standalone net profit at Rs 9.38 crore in the quarter ended September, against a profit of Rs 172.91 crore in the year-ago period.

Sales rose 16 per cent to Rs 1,669 crore in the reporting quarter, compared with Rs 1,433 crore in the same quarter last year, a company statement said.

It posted a profit before tax (before exceptional items) of Rs 11.9 crore, against Rs 42 crore last year.

BASF India chairman and managing director Raman Ramachandran said improved sales from agricultural solutions business and Dahej site contributed to the revenue growth, while rising input cost and currency depreciation impacted profitability for the quarter.

"The transfer of the pigments business will enable us to move forward with a streamlined business model and serve customers better," he said.

Meanwhile, the company's board of directors Tuesday approved the transfer of its pigments business to BASF Colors & Effects India, a 100 per cent subsidiary of BASF Colors & Effects GmbH, effective January 1, 2019, for a consideration to be determined by an independent valuer.

All of the BASF's coloured and effect pigments portfolio is being bundled under the 'Colors & Effects' brand globally, serving customers across five key industries, including coatings, plastics, printing, cosmetics, and agriculture, the company said.

In India, the pigments business, which forms part of the performance products segment, had generated sales of Rs 98 crore for the year ended March 2018, according to the release.

The company said the new legal entity will be able to operate the pigments business with more flexibility, higher speed and increased independence and will help to fully leverage the growth potential out of the emerging Asian region.

Its scrip ended 0.33 per cent higher at Rs 1,658.30 apiece on the BSE Tuesday, against 0.52 per cent decline in the benchmark.