Coromandel net profit falls 41% in Q3 FY2015-16

Indian fertiliser and pesticide maker Coromandel International Ltd recently reported a 41% fall in net profit in the quarter ended 31 December,2015 due to erratic rainfall impacting the farm sector and higher expenses.

The consolidated net profit for the company, controlled by the Rs.26,900-crore Murugappa Group, stood at Rs.81.8 crore as against Rs.139 crore a year ago.
Total income from operations fell 18% to Rs.2,749 crore.

“Weak monsoon in addressable markets and rupee depreciation impacted sales and margins,” said Sameer Goel, managing director.

“In spite of a challenging environment, Coromandel has increased its market share in home markets and has taken initiatives to provide value-added products and services to the farming community,” he said.

India’s worst June-September monsoon in six years ended with a 14% deficit, impacting crop output in the rain-dependent kharif season. The autumn harvest is likely to drop to 124 million tonnes (mt) in 2015, compared with 126.3 mt last year and 128.7 mt in 2013-14, according to the first advance estimate released by the farm ministry on 16 September.

Some of the areas that suffered the worst rainfall deficits include Maharashtra, eastern Madhya Pradesh, Gujarat, northern interior Karnataka and Telangana.