On October 26, 2023, Coromandel International Ltd.: BSE, NSE: COROMANDEL) announced its Q2 2023-24 financial results, with Total Income low compared to the same quarter of the previous year, but PAT higher than Q2 of the previous fiscal year.
Table of Content
Prominent Highlights
Here are the highlights for Q2 (Standalone Results):
- The Total Income stood at ₹7,031 Cr as against ₹10,140 Cr in the same quarter of the previous year. This reflects a de-growth of 31%.
- EBITDA for Q2 stood at ₹1,064 Cr for this past quarter Q2, while it was ₹1,055 Cr in Q2 of the previous fiscal year. Here, the growth is at 1%.
- For Q2, PAT stands at ₹762 Cr versus ₹738 Cr in Q2 of the previous fiscal year. This is a growth of 3%.
Businesses Reviewed
The Q2 report of Coromandel International also had some key highlights regarding the different businesses under its purview:
- Allied and Nutrient Business
For this business segment, the Revenue for Q2 stood at ₹6,307 Cr relative to ₹9,461 Cr for Q2 in the previous fiscal year. The Profit before Interest and Tax stood at ₹998 Cr versus ₹955 Cr in Q2 of the previous fiscal year.
- Crop Protection Business
The Revenue for Q2 for this business segment stood at ₹722 Cr relative to ₹702 Cr in the same quarter of the previous fiscal year. The Profit before Interest and Tax stood at ₹88 Cr relative to ₹103 Cr in the same quarter of the previous fiscal year.
Also Read: Coromandel International Share Price
Management Commentary
The Executive Vice-Chairman of Coromandel International, Arun Alagappan, has some reflections on the Q2 results:
- Coromandel has exhibited a healthy performance for the quarter in spite of a challenging market environment.
- Profitability has been sustained while the working capital has seen an enhancement in Q2.
- The company’s main operating markets were affected by sub-normal monsoon conditions and this has impacted the agri inputs offtake.
- POS sales in the Allied and Nutrient businesses recorded a boost.
- With the introduction of a patented nanotechnology-based fertiliser, NANO DAP, the feedback from customers has been positive.
- The Crop Protection business has recorded strong growth in terms of volume.
- The company has recently invested in a diverse drone startup, Dhaksha.
- In Q2, Coromandel International acquired equity of 16.53% in XMachines, a robotics-based AI startup.
- Drone investment and investment in startups has been done with a view towards the progress of company operations in the agricultural sector.
- As a normal North-East monsoon has been forecasted, the upcoming months are predicted to be conducive to a positive demand cycle.
Financial Results Of Coromandel International
| Metrics | Q2 FY2023-24 | Q2 FY2022-23 | % Growth |
| Total Income | ₹7,031 Cr | ₹10,140 Cr | -31% |
| EBITDA | ₹1,064 | ₹1,055 Cr | 1% |
| Profit After Tax | ₹762 Cr | ₹738 Cr | 3% |
About Coromandel International Ltd.
As one of India’s leading and pioneering agri-solutions providers, offering a wide variety of products and services spanning the value chain of farming, Coromandel started its humble operations from Ranipet, in Tamil Nadu, housing India’s first fertiliser plant, in 1906. The company has been evolving for more than a century ever since then. It is in the business of offering customised farming solutions and consultation services. The company is known to adopt a “Farmer First” approach, and the focus on quality and consumer relation initiatives has enhanced the company in gaining farmers’ loyalty and trust, establishing a “Gromor” attitude.
The trust and reliability grown over the years have catapulted Coromandel to the top as India’s biggest private sector fertiliser company involved in the production of phosphate fertilisers. The company is also the largest manufacturer of neem-based biopesticide manufacturer in the world and the leader in organic fertiliser marketing. The icing on the cake for Coromandel is that the company has the largest agri-retail chain in India, with more than 750 stores.
Source:
https://www.coromandel.biz/investors/financial-results-quarterly/
