Coromandel International reports financial decline in Q3 FY24 amidst market challenges
Coromandel International Limited (BSE: 506395, NSE: COROMANDEL), a leading Indian Agri solutions provider, has reported its financial results for the quarter ended 31st December 2023. The company, which operates in sectors like Fertilisers, Crop Protection Chemicals, and Organic Fertilizer, witnessed a significant downturn in its financial performance, reflecting broader market challenges.
For the quarter ending December 31, 2023, Coromandel International reported a total income of Rs. 5,510 Cr, marking a substantial de-growth of 34% compared to the previous year. The company’s EBITDA for Q3 stood at Rs. 358 Cr, a 54% decrease from the previous year’s figure of Rs. 781 Cr. Moreover, the Profit After Tax (PAT) for Q3 experienced a 55% decline, dropping to Rs. 243 Cr from Rs. 539 Cr in the previous year.
Over the nine-month period ending December 31, 2023, the total income was reported at Rs. 18,281 Cr, indicating a 25% de-growth from the previous year. EBITDA and PAT for this period also saw reductions of 15% each, standing at Rs. 2,132 Cr and Rs. 1,510 Cr respectively.
Coromandel International Faces Downturn in Agri Inputs Industry, Looks to Future Expansion
In the Nutrient and Allied Business segment, revenue for the quarter was Rs. 4,892 Cr, a decrease from Rs. 7,710 Cr in the same period last year. The Crop Protection Business, however, reported a slight increase in profit before interest and tax for the quarter, rising to Rs. 82 Cr from Rs. 81 Cr in the previous year.
On a consolidated basis, Coromandel’s total income for the quarter was Rs. 5,523 Cr, a decrease from Rs. 8,349 Cr in the previous year. The profit after tax for the quarter was Rs. 228 Cr, compared to Rs. 527 Cr in the previous year.
Arun Alagappan, Executive Vice Chairman of Coromandel International Limited, acknowledged the challenging quarter due to external factors like below-normal monsoons and lower crop sowings. He noted, “Despite the challenges, Coromandel’s Nutrient and Allied businesses improved its market share during the quarter amidst decline in sales volumes.” He also highlighted the company’s commitment to invest in value creation opportunities, including the expansion of its Kakinada Fertiliser unit.
Coromandel International Limited’s latest financial report indicates a challenging period for the company, largely attributed to external market conditions. However, the company’s strategic planning and commitment to expansion and efficiency improvements show a proactive approach to navigating these challenges and sustaining growth in the long term.