Coromandel International Limited has posted Q1 FY24 total Income in at Rs. 5,740 crore vs Rs. 5,776 crore over previous year, registering a de-growth of 1%. EBITDA for Q1 was Rs. 710 crore vs. Rs. 683 crore in Q1 of previous year, registering a growth of 4% over Q1 of previous year. PAT for Q1 was Rs. 505 crore vs Rs. 496 crore 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 crore as against Rs. 5,111 crore for the quarter ended June 2022, registering a y/y growth of 2%. Profit before interest and tax for the quarter was Rs. 672 crore vs. Rs. 602 crore for the quarter ended June 2022.

Crop Protection Business

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

Consolidated Results

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

Commenting on the financial results, 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 was led 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.”