BASF India Q3 results: PAT falls 26.1% to Rs 104 cr on higher input costs

Chemicals maker BASF India reported a 26.1 per cent fall in third-quarter profit on Tuesday, hurt by higher input costs despite healthy demand.

The profit fell to Rs 104 crore ($11.95 million) for the three months ended Dec. 31, 2024, from Rs 140 crore a year earlier.

The company saw a 15 per cent rise in its total expense, driven by a 7.9 per cent rise in its raw materials cost. 

 

The Indian arm of Germany's BASF also said it will close its manufacturing unit at Dahej, located in western India, due to outdated technology, low utilization and high maintenance costs.

The closure, expected in the first half of the year, will result in fixed cost savings with minimal earnings impact, as the unit contributed to 0.3 per cent of total revenue in 2024.

KEY CONTEXT

Analysts believe the "worst is over" for India's agrochemical sector as they expect the industry to grow in 2025, rebounding from global agrochemical destocking that had squeezed margins through lower sales, falling prices, and inventory losses. However, some firms are still experiencing the lingering effects.

The materials segment of BASF India, comprising performance materials and monomers for transportation, appliances and footwear, posted a 13.9 per cent rise in revenue.

The agriculture solutions segment, including insecticides and herbicides, grew 25.2 per cent.