Coromandel International posts Q2 FY19 results

Coromandel International Limited, India's second largest Phosphatic fertiliser company, in the business of Fertilisers, Crop Protection, Specialty Nutrients, Organic Manure and Retail, has reported the financial results for the quarter ended 30th September 2018.

Consolidated performance for the quarter ended 30th September 2018

During the quarter ended 30 September 2018, the Company's consolidated total income is Rs. 5,018 crores in comparison to the corresponding quarter last year of Rs. 3,693 crores, registering a growth of 36%. Profit before depreciation, interest, taxes and exceptional item (EBITDA)for the quarter ended 30 September 2018 hasgrown by 16% to Rs.666 crores VS. Rs. 575 crores during corresponding quarter of last year. Consolidated net profit after tax for the quarter is Rs. 366 crores in comparison to Rs.349 crores for the corresponding quarter last year.

For the half year ended 30 September 2018, the Company's consolidated total income is Rs. 7,555 crores (Half year ended 30 September 2017 Rs.6011 crores), profit before tax is Rs.692 crores (Half year ended 30 September 2017 Rs.638 crores) and profit aftertax is Rs.456 crores (Half year ended 30 September 2017 Rs.421 crores).

Standalone performance for the quarter ended 30th September 2018

During the quarter ended 30 September 2018, the Company's total income is Rs.5,018 crores in comparison to the corresponding quarter last year of Rs.3,689 crores, registering a growth of 36%. Profit before depreciation, interest, taxes and exceptional item (EBITDA) for the quarter ended 30 September 2018 hasgrown by 16% to Rs.665 crores VS. Rs.573 crores during corresponding quarter of last year. Net profit after tax for the quarter is Rs. 366 crores in comparison to Rs.348 crores for the corresponding quarter last year.

For the half year ended 30 September 2018, the Company's total income is Rs.7,545 crores (Half year ended 30 September 2017 Rs.5993 crores), profit before tax is Rs.690 crores (Half year ended 30 September 2017 Rs.635 crores) and profit after tax is Rs.454 crores (Half year ended 30 September 2017 Rs.419 crores).

Commenting on the financial results, Mr. Sameer Goel - Managing Director, Coromandel International Limited, said: "Coromondel had a strong performance in 02, driven by its improved customer reach and marketing capabilities, differentiated product offerings, smart sourcing and efficient manufacturing. This was despite below normal monsoons, rising raw material prices, sharp rupee depreciation and higher financing cost encountered during the quarter.

Phosphatic Fertiliser business of the Company has improved its market share and registered 28% year-on-year (yoy) growth in sales volumes during Q2.

Crop Protection Business registered yoy revenue growth of 14% during the quarter. Business has introduced four new products during H1, including two in-house patented combination molecules. These have received very encouraging response from the market. Further, the integration of Bio Pesticide business has supported its expansion into complimentary product segments and geographies.

Our focus on R&D and technology has helped in introducing four differentiated product offerings in water soluble fertiliser and value added Single Super Phosphate.

With improved reservoir levels in Southern markets and prediction of normal North East monsoons, we expect favourable agri environment during the second half of the year. Further, with the stabilization of Direct Benefit Transfer in fertiliser and reduction in GST rates on Phosphoric acid, working capital situation is likely to improve, going forward.

Coromandel will continue to invest towards infrastructure augmentation and capability development to offer differentiated solutions to the farming community. We have been focusing on leveraging agri technologies to improve our farm value proposition and increase customer connectivity. The Company is well positioned to support the farmers and enhance their prosperity by offering sustainable agri solutions".