Coromandel International Limited, India's leading Agri solutions provider is in the business of Fertilisers, Crop Protection Chemicals, Bio products, Specialty Nutrients, Organic Fertiliser and Retail. The Company has reported the financial results for the quarter ended 30th September 2024.
Highlights- Standalone Results:
-
Total Income in Q2 was at Rs. 7,509 Cr vs Rs. 7,031 Cr for the corresponding quarter of last year
-
EBITDA for Q2 was Rs. 983 Cr vs. Rs. 1,064 Cr for the corresponding quarter of last year
-
PAT for Q2 was Rs. 696 Cr vs Rs. 762 Cr in Q2 for the corresponding quarter of last year
-
Total Income in H1 was at Rs. 12,277 Cr vs Rs. 12,771 Cr for the corresponding period of last year
-
EBITDA for H1 was Rs. 1,490 Cr vs. Rs. 1,774 Cr for the corresponding period of last year
-
PAT for H1 was Rs. 1,027 Cr vs Rs. 1,267 Cr for the corresponding period of last year
Review of Businesses:
Nutrient and Allied Business
The Revenue for the quarter ended September 2024 was at Rs. 6,746 Cr as against Rs. 6,307 Cr for the quarter ended September 2023. Profit before interest and tax for the quarter was Rs. 861 Cr vs. Rs. 998 Cr for the quarter ended September 2023.
The Revenue for the first half was at Rs. 10,944 Cr compared with Rs. 11,499 Cr in the corresponding period of the previous year. Profit before interest and tax for the first half was Rs. 1,297 Cr vs. Rs. 1,670 Cr in the corresponding period of the previous year.
Crop Protection Business
The Revenue for the quarter ended September 2024 was at Rs. 755 Cr as against Rs. 722 Cr for the quarter ended September 2023. Profit before interest and tax for the quarter was Rs. 110 Cr vs. Rs. 88 Cr for the quarter ended September 2023.
The Revenue for the first half was at Rs. 1,306 Cr compared with Rs. 1,278 Cr in the corresponding period of the previous year. Profit before interest and tax for the first half was Rs. 173 Cr vs. Rs. 143 Cr in the corresponding period of the previous year.
Consolidated Results
Coromandel’s total income for the quarter ended September 2024 was at Rs. 7,498 Cr vs. Rs. 7,033 Cr for the quarter ended September 2023. The profit after tax for the quarter was at Rs. 659 Cr as against Rs. 755 Cr for the quarter ended September 2023.
Coromandel’s total income for the first half was at Rs. 12,281 Cr vs. Rs. 12,771 Cr in the corresponding period of the previous year. The profit after tax for the first half was at Rs. 968 Cr as against Rs. 1,249 Cr in the corresponding period of the previous year.
New Projects
The Board of Directors of Coromandel International Limited today approved capital projects with an investment outlay of around INR 800 Crore mainly pertaining to:
(i) Enhancement of granulation capacity by 7.5 lakh tons per annum for manufacture of complex and unique fertilisers at Kakinada, Andhra Pradesh, and
(ii) Setting up of a state-of-the-art Multi-Product Plant for manufacture of recently off-patented Fungicides at Ankleshwar, Gujarat
The capacity enhancement will involve setting up of a new granulation train for NPKs at Coromandel’s existing fertiliser manufacturing unit at Kakinada. The new granulation train will have an annual production capacity of 7.5 lakh tons, taking the total production capacity of the Kakinada site to 30 lakh tons. Earlier this year, company announced the setting up of Phosphoric acid plant with a capacity of 650 tons per day (TPD) and sulphuric acid plant with a capacity of 2000 TPD at a cost of INR 1000 Crore.
The strategic location of the Kakinada facility on the east coast of India provides Coromandel with logistical advantages, ensuring efficient supplies to markets across India. The proposed granulation plant will be equipped with state-of-the-art technology, adhering to the highest environmental and safety standards, while ensuring energy-efficient operations. The investment will enable production of high-quality phosphatic fertilisers to meet the growing demand of Indian farmers.
Coromandel’s Board has also approved the establishment of a state-of-the-art Multi-Product Plant (MPP) for manufacturing Crop Protection Technicals at its Ankleshwar unit in Gujarat. This move aligns with the company’s growth ambitions in crop protection segment and capitalizes on India’s emerging role as a key player in the global AgChem supply chain.
The investment reflects Coromandel's long-term vision to become a leading player in crop protection, leveraging its expertise in complex chemistries to introduce next-generation molecules. Recently, the company has also launched 10 new crop protection products aimed at strengthening its domestic formulations business. The proposed MPP will further enhance Coromandel’s backend manufacturing capabilities and help meet the growing demand for the identified products in both domestic and export geographies.
Besides these major capex projects, the Board has also approved fund infusion into company’s mining entity Baobab Mining Chemical Corporation (BMCC) at Senegal for its ongoing capex program. Also, during the quarter, Coromandel through its wholly owned subsidiary, Coromandel Chemicals Limited, has announced acquisition of additional 8.8% stakes in BMCC, subject to regulatory approvals, which will take its overall shareholding in BMCC to 53.8%.
Commenting on the financial results, Sankarasubramanian S, Managing Director & CEO, Coromandel International Ltd., said: “Company registered a healthy performance in Q2, led by higher sales volumes and improved operational efficiencies across the businesses. The company continues to make sequential recovery quarter on quarter, despite lower subsidy rates and firming up of raw material prices. Favourable agricultural environment like above normal monsoon and higher crop sowing supported agri inputs consumption.”
