Coromandel International financial results: Q2 FY 24 shows resilience despite challenges

Coromandel International Limited, a pivotal player in India‘s agricultural sector, has unveiled its financial results for the quarter that wrapped up on September 30, 2023. At the forefront of fertilisers, bio products, and crop protection chemicals, the company’s latest financial performance paints a detailed portrait.

Standalone Results Illuminate Declines and Growth

Total Income Sees a Dip: The Q2 figures reveal a total income of Rs. 7,031 Cr, marking a decline of 31% in comparison to Rs. 10,140 Cr the previous year.

EBITDA Exhibits Mild Growth: Standing at Rs. 1,064 Cr, the EBITDA for Q2 showcases a 1% uptick from the Rs. 1,055 Cr of the preceding year.

PAT Increases Slightly: With a Q2 PAT of Rs. 762 Cr, there’s a 3% growth juxtaposed against Rs. 738 Cr from the previous year’s Q2.

Diving into the first half of the fiscal year, total income touched Rs. 12,771 Cr, marking a 20% degrowth from the earlier Rs. 15,916 Cr. However, both EBITDA and PAT noted 2% and 3% growth respectively.

Business Review: Nutrient and Crop Protection Segments

Nutrient and Allied Business: This sector reported Q2 revenues of Rs. 6,307 Cr, seeing a dip from Rs. 9,461 Cr in Q2 2022. Meanwhile, the profit before interest and tax observed a slight rise, reaching Rs. 998 Cr compared to Rs. 955 Cr in 2022.

Crop Protection Business: This division clocked in Q2 revenues of Rs. 722 Cr, a slight increase from Rs. 702 Cr of 2022’s Q2. Conversely, the profit before interest and tax decreased to Rs. 88 Cr from Rs. 103 Cr.

Consolidated Results Showcase Mixed Outcomes

Coromandel’s consolidated income for Q2 FY 24 was Rs. 7,033 Cr, contrasting the Rs. 10,145 Cr of 2022. Meanwhile, the PAT saw a marginal rise, sitting at Rs. 755 Cr in contrast to Rs. 741 Cr of the preceding year.

When evaluating the first half’s consolidated results, total income was Rs. 12,771 Cr, while the PAT marginally increased to Rs. 1,249 Cr from the previous Rs. 1,240 Cr.

Executive Insights from Arun Alagappan

Arun Alagappan, the Executive Vice Chairman of Coromandel International Ltd., shed light on the company’s enduring resilience amidst trying business climates. He remarked on how adverse monsoons affected the agricultural inputs. He further elaborated on the promising inception of Nano DAP, a nanotechnology-based fertilizer, and investments in startups like Dhaksha and XMachines. Looking forward, he expressed optimism given the forecast of a normal North-East monsoon.