Coromandel International 24.17 Percent Increase in Profit at Rs 90.21 crore

Fertiliser and allied products manufacturer Coromandel International Limited’s consolidated total income for the quarter ended June 2018 stood at Rs 2,537 crore as compared to Rs 2,318 crore in the corresponding quarter of last financial year, registering a growth of 9.4 per cent.

Similarly, consolidated net profit after tax for the quarter stood at Rs 90 crore, registering a growth of 23.3 percent as compared to Q1FY18. “Coromandel had a strong performance during the quarter, improving its capacity utilization, operational and sourcing efficiencies. This was despite erratic monsoon distribution in our key markets. The normal south-west monsoons, improved reservoir levels, recent pick up in crop-sowing, higher support price and farmer welfare schemes in our key markets are expected to augment agriculture growth,” said Sameer Goel, Managing Director, Coromandel International Limited, commenting on the results.

“Also, the recently announced Goods and Services Tax (GST) rate reduction on fertilizer grade phosphoric acid from 12 to five percent is likely to bring down the company’s GST credit accumulation and improve the working capital situation,” Goel said.

India's second-largestphosphate fertilizer maker Coromandel International posted a 24.17 per cent increase in consolidated net profit at Rs 90.21 crore during the first quarter of 2018-19 fiscal on higher income.

Its net profit stood at Rs 72.65 crore in the same quarter of the last financial year, the company said in a BSE filing.

Net income increased on a consolidated basis to Rs 2,537.29 crore during the April-June quarter of the 2018-19 fiscal from Rs 2,317.60 crore in the year-ago period.

Expenses remained higher at Rs 2,404.54 crore as against Rs 2,204.78 crore in this period.

During the first quarter, the company said it acquired on a slump sale basis the assets and liabilities of Bio Business of EID Parry (India) Ltd with effect from 1 April, 2018 and its subsidiary Parry America Inc with effect from 19 April, 2018.

The company's scrip closed lower by 0.94 percent at Rs 400.70 apiece on the BSE.