Coromandel International Posts Q1 Results

Coromandel International Limited, India's leading Agri solutions provider is in the business of Fertilisers, Crop Protection Chemicals, Bio products, Specialty Nutrients, Organic Fertilizer and Retail. The Company has reported the financial results for the quarter ended 30th June 2024.

Highlights – Standalone Results:

• Total Income in Q1 was at Rs. 4,768 Cr vs Rs. 5,740 Cr of previous year.

• EBITDA for Q1 was Rs. 507 Cr vs. Rs. 710 Cr in Q1 of previous year.

• PAT for Q1 was Rs. 331 Cr vs Rs. 505 Cr in Q1 of previous year.

Review of Businesses

Nutrient and Allied Business

The Revenue for the quarter ended June 2024 was at Rs. 4,198 Cr as against Rs. 5,192 Cr for the quarter ended June 2023, registering a year on year de-growth of 19%. Profit before interest and tax for the quarter was Rs. 436 Cr vs. Rs. 672 Cr for the quarter ended June 2023.

Crop Protection Business

The Revenue for the quarter ended June 2024 was at Rs. 551 Cr as against Rs. 556 Cr for the quarter ended June 2023. Profit before interest and tax for the quarter was Rs. 63 Cr vs. Rs. 55 Cr for the quarter ended June 2023.

Consolidated Results

Coromandel’s total income for the quarter ended June 2024 was at Rs. 4,783 Cr vs. Rs. 5,738 Cr for the quarter ended June 2023. The profit after tax for the quarter was at Rs. 309 Cr as against Rs. 494 Cr for the quarter ended June 2023.

Commenting on the financial results, S Sankarasubramanian, Managing Director & CEO, Coromandel International Ltd. said:

“During the quarter, Coromandel made sequential recovery, registering healthy volume sales in Nutrients and Crop Protection businesses despite the delay in onset of monsoons. However, margins for the fertilizers business were impacted due to lower subsidy rates and rise in input costs.

Strengthening its backward integration capabilities has been one of the core focus areas for the company. Towards this, the fertilizer business has commenced activities for its Phosphoric acid (650 tpd)-Sulphuric acid (2000 tpd) complex at Kakinada. Further, to improve the operational efficiency and throughput at its phosphate mines at BMCC, Senegal, the company is setting up a fixed processing plant which is expected to be commissioned during the 2nd quarter of the year. During the quarter, the company commissioned Nano DAP plant at Kakinada and has set up Urea Super Phosphate unit at Nimrani, MP.

Crop Protection business volumes improved by 5% driven by growth in technicals and formulations. The company introduced ten new products during Q1 including four patented products. Its in-licenced formulation ‘Prachand’ has received very encouraging response from the market and business intends to introduce such novel formulations in coming periods by partnering with global innovators. The business has also finalized plans for setting up multi product plants for herbicide and fungicide manufacturing and activities for the same will commence during the year.  The company continues to take progressive steps in strengthening its capabilities in Speciality chemicals and CDMO space.

As part of its diversification strategy, Coromandel has been actively pursuing technology-based investments. During Q1, it increased its shareholding in drone-based company Dhaksha to 58%, along with investing in clean tech start-up Ecozen increasing its shareholding to 5.5%."

"With the improved business scenarios like above normal southwest monsoons in key markets, increase in crop acreages and improving global agrochemical scenario, we expect favourable environment in the agri inputs sector,” he added.