Coromandel International Q1 net profit at Rs. 494 Cr

Date:07-28-2023

Coromandel International Limited (BSE: 506395, NSE: COROMANDEL), 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 ended 30th June 2023.

Highlights – Standalone Results:

• Total Income in Q1 was at Rs. 5,740 Cr vs Rs. 5,776 Cr over previous year, registering a de-growth of 1%.

• EBITDA for Q1 was Rs. 710 Cr vs. Rs. 683 Cr in Q1 of previous year, registering a growth of 4% over Q1 of previous year.
  

• PAT for Q1 was Rs. 505 Cr vs Rs. 496 Cr in Q1 of previous year, registering a growth of 2%.

Review of Businesses

Nutrient and Allied Business

The Revenue for the quarter ended June 2023 was at Rs. 5,192 Cr as against Rs. 5,111 Cr for the quarter ended June 2022, registering a y/y growth of 2%. Profit before interest and tax for the quarter was Rs. 672 Cr vs. Rs. 602 Cr for the quarter ended June 2022.

Crop Protection Business

The Revenue for the quarter ended June 2023 was at Rs. 556 Cr as against Rs. 654 Cr for the quarter ended June 2022. Profit before interest and tax for the quarter was Rs. 55 Cr vs. Rs. 85 Cr for the quarter ended June 2022.

Consolidated Results

Coromandel’s total income for the quarter ended June 2023 was at Rs. 5,738 Cr vs. Rs. 5,783 Cr for the quarter ended June 2022. The profit after tax for the quarter was at Rs. 494 Cr as against Rs. 499 Cr for the quarter ended June 2022.

Commenting on the financial results, Mr. Arun Alagappan, Executive Vice Chairman, Coromandel International Ltd. said:″Coromandel posted a steady performance in Q1, registering strong volume growth and sustaining its profitability. This was despite the challenging business environment as delayed monsoon onset impacted crop sowings and agri-inputs applications. 

Nutrient and Allied businesses performance wasled by robust 18% sales volume growth in phosphatic fertilisers. During the quarter, company conducted soft launch of ‘Nano DAP’, a cutting-edge nanotechnology-based fertilizer, developed at its R&D centre. The product is expected to be introduced in second half of the year and can provide impetus to sustainable farming practices by providing site specific nutrition and improving nutrient use efficiency. Major capital expenditure projects like Sulphuric acid and Desalination Plant are progressing as per schedule and are expected to be commissioned in August’23.

Crop Protection segment performance during the quarter was affected by industry headwinds and sub normal rainfall in its key markets. The business continued to work towards improving its manufacturing efficiencies. It is expanding its product portfolio and plans to launch novel combinations and technical products during the year. It has started the preparatory work for establishing large scale Multi product plant and has acquired 50 acres land at Dahej.

The Bioproducts business of the Company is expanding its non-Azadirachtin portfolio and is working on alternate plant extract-based product. Pilot trials have been successful, and business expects to commercialise the product during the year.

As part of its expansion into Speciality chemicals segment, the Company has identified few complementary chemistries and plans to introduce products in Q2 by leveraging its technical capabilities and existing Plant infrastructure.

In addition to strengthening its core business activities, the Company is focusing on new opportunities in adjacent and step out areas. As part of this approach, Coromandel acquired majority shareholding in Dhaksha Unmanned Systems Pvt. Ltd (Dhaksha), a Chennai based differentiated drone start-up. Dhaksha is a leading player in drone space in India, providing complete range of Unmanned Aerial Systems (UAS) technology solutions across Agriculture, Defence, Surveillance and Enterprise applications.

With the improved coverage of South-West monsoons across India, we expect the agri inputs consumption to pick up in Q2. We are committed to drive integrated farm management practices and introduce novel technologies that can enhance the efficiency of agricultural solutions and improve sustainability of Indian farms.″

Unaudited Financial Results For The Quarter Ended 30Th June, 2023 can be read here.