The Indian wing of German-based company BASF, BASF India, declared their Q1 FY21 results on Thursday. The company reported a net loss of Rs 29.15 crore for the quarter ended June 2020. This is significantly lower when compared to the net profit of Rs 8.20 crore reported in June last year.

Q1 FY21Q4 FY20Q1 FY20QoQYoY
Revenue17961,8481613-2.81%11.3%
Net Profits-29.140.38.20-172%-454%
Values in Crore Rupees

About BASF India

BASF India operates under the Indian chemical industry. The company operates under the following segments: Chemicals Performance Products, Functional Materials & Solutions and Agricultural Solutions. The company manufactures products which are used in construction, agriculture automotive, consumer durables, pharmaceuticals, consumer care paper and paints.

COVID-hit quarter

The net sales of BASF India increased by 10%, but the company failed to control the increasing of cost expenditure. The nationwide lockdown was one of the major reasons for poor performance this quarter .

The capacity utilization at manufacturing plants was reported to be at lowest levels in the month of April. This increased the cost of managing the plants. Supply chain disruptions was another major issue which guided these poor results.

“The Agricultural Solutions business recorded strong growth on account of its diversified product portfolio and a favourable monsoon. Growing consumer demand for personal hygiene and health were drivers for a surge in demand for the Nutrition and Care segments of the Company,” said Narayan Krishnamohan (Managing Director, BASF India).

Low demand for automotive, construction and consumer durable products made the situation worse for the company. The total expense for the company in this quarter was amounted to be Rs 1809 crore, which is 13% higher than last June. Thus, even though the sales have seen a surge, growing expenditure pushed the company into a loss this quarter.

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