India's Coromandel Int'l Q3 profit beats view on robust demand

Agricultural chemicals maker Coromandel International Ltd (CORF.NS) reported a better-than-expected rise in third-quarter profit on last Thursday, as demand for its products was bolstered by healthy sowing, above average monsoon and firm crop prices.

The company's consolidated net profit after tax rose 38.1% to 5.27 billion rupees ($64.24 million) from a year earlier, while analysts on average had expected a profit of 4.35 billion rupees.

The company saw a higher nitrogen, phosphorous, potassium fertilizer sales along with higher subsidy realization in the nutrients business, thus boosting their revenue, it said.

For the crop protection segment, domestic formulation and B2B business grew which was offset with headwinds faced in the export markets, said Arun Alagappan, executive vice chairman, Coromandel International.

Revenue from operations climbed 63.8% to 83.10 billion rupees.

The company's revenue was boosted by a 72% growth in nutrient and other allied businesses, while earnings from the crop protection segment rose about 5%.

The company also approved interim dividend of 6 rupees per share, which will be paid on or after Feb. 27, with the record date set as Feb. 17.

Peer UPL Ltd (UPLL.NS) reported a smaller-than-expected rise in third-quarter profit earlier this week, hurt by higher raw material costs.