BASF India registered sales of Rs. 20,143.8 million for the third quarter of 2019 which ended on December 31, 2019, as compared to Rs. 14,049.9 million in the corresponding quarter of the previous year, representing an increase of 43%.
The Company reported loss before tax (before exceptional items) of Rs. 240.4 million as compared to loss before tax (before exceptional items) of Rs. 632.5 million in the prior-year quarter.
Further, the Board of Directors of the Company approved the proposal to transfer its Construction Chemicals business to Master Builders Solutions India Pvt Ltd, a fellow subsidiary company, at a consideration of Rs. 5,951.6 million, subject to the approval of the shareholders of the Company and other required approvals. The transaction is expected to close by the second quarter of the financial year 2020/21.
The Company’s Construction Chemicals business, which was reported under Surface Technologies, generated sales of Rs. 4,835.2 million for the year ended March 31, 2019.
“Despite the backdrop of weak industrial and automotive growth, we were able to increase revenues for the Company on account of change in business model and price management,” said Narayan Krishnamohan, Managing Director, BASF India Limited. “With improvement in margins, we were able to minimize our losses to Rs. 240.4 million as compared to Rs. 632.5 million in corresponding quarter of previous year.”
In the first nine months of the financial year, the Company registered sales of Rs. 57,024.6 million, as compared to Rs. 47,076.7 million for the corresponding period of the previous year, an increase of 21%. Profit before tax (before exceptional items) stood at Rs. 76.0 million for the nine months that ended on December 31, 2019, compared to loss before tax (before exceptional items) of Rs. 163.0 million for the corresponding period of the previous year.