Coromandel International Posts Q4 & Full Year Results; Arun Alagappan Shares Financial Insights & Growth Strategy

Coromandel International, 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 and year ended 31st March 2024. The Board of Directors of Coromandel International Limited approved the financial results of the company for the quarter and year ended 31st March 2024. The Board has recommended a final dividend of Rs. 6 per share for the financial year 2023-24.

Highlights: Standalone Results

For the Quarter

• Total Income in Q4 was at Rs. 4,027 Cr vs Rs. 5,519 Cr in Q4 of previous year, registering a decline of 27%.

• EBITDA for Q4 was Rs. 269 Cr vs Rs. 399 Cr in Q4 of previous year, registering a decline of 33%.

• PAT for Q4 was Rs. 209 Cr vs Rs. 262 Cr in Q4 of previous year, registering a decline of 20%.

For the Year

• Total Income for the year ended 31^st March 2024 was at Rs. 22,308 Cr vs Rs. 29,784 Cr over previous year, registering a decline of 25%.

• EBITDA was Rs. 2,401 Cr vs Rs. 2,918 Cr in previous year, registering a decline of 18%.

• PAT was Rs. 1,719 Cr vs Rs. 2,035 Cr in previous year, registering a decline of 16%.

Review of Businesses

Nutrient and Allied Business

The Revenue for the quarter ended March 2024 was at Rs. 3,358 Cr as against Rs. 4,881 Cr during Q4 of Previous Year. Profit before interest and tax for the quarter was Rs. 248 Cr vs Rs. 339 Cr for the quarter ended March 2023.

The Revenue for FY23-24 was at Rs. 19,749 Cr compared with Rs. 27,162 Cr in the previous year. Profit before interest and tax for the year was Rs. 2,176 Cr vs Rs. 2,594 Cr in the previous year.

Crop Protection Business

The Revenue for the quarter ended March 2024 was at Rs. 564 Cr as against Rs. 610 Cr during Q4 of Previous Year. Profit before interest and tax for the quarter was Rs. 63 Cr vs Rs. 89 Cr for the quarter ended March 2023.

The Revenue for FY23-24 was at Rs. 2,454 Cr compared with Rs. 2,617 Cr in the previous year. Profit before interest and tax for the year was Rs. 288 Cr vs Rs. 358 Cr in the previous year.

Consolidated Results

Coromandel’s Total income for the quarter ended March 2024 was at Rs. 3,996 Cr vs. Rs. 5,523 Cr for the quarter ended March 2023. The profit after tax for the quarter was at Rs. 164 Cr as against Rs. 246 Cr for the quarter ended March 2023.

Coromandel’s total income for FY23-24 was at Rs. 22,290 Cr vs. Rs. 29,799 Cr in the previous year. The profit after tax for the year was at Rs. 1,641 Cr as against Rs. 2,013 Cr in the previous year.

Commenting on the financial results, Arun Alagappan, Executive Chairman, Coromandel International said: “FY2023-24 was marked by a challenging business environment as sub-normal monsoons and lower reservoir levels in Coromandel’s key operating markets impacted the agri-inputs consumption. Further, the sharp corrections in subsidy rates in the second half of the year coupled with global headwinds in Crop Protection resulted in margin pressure. Despite this, Coromandel adapted well to register a satisfactory performance and has taken progressive steps to strengthen its operations during the year.”

“Fertilizer Plants operated at higher capacity at 95% levels and improved its backward integration capabilities. Crop Protection registered a strong 20% volume growth across the international and domestic markets and plans to introduce new molecules through captive and in-licensing arrangements. Retail stores improved farm-level outreach and are expanding its footprint in new markets in FY25. Company has also scaled up its drone spraying services and during the year covered 25000+ acres.”

“As part of its diversification strategy, the Company forayed into Speciality chemicals by leveraging its existing infrastructure and continued its engagement on CDMO opportunity. Investment in drone company Dhaksha is progressing well with a strong order book of around Rs 250 crores from Defence and Agriculture segments. Going forward, the company is committed to strengthen its core businesses and invest in novel technologies and adjacent opportunities. The forecast of an above normal monsoon and correction in NBS rates bodes well for the industry and we expect the market fundamentals to improve in the coming period,” he added.