Coromandel International Wins Appeal Against Rs 589-Crore Recovery Order
The Office of the Commissioner (Appeals), Central Tax and Customs, Guntur, quashed the order on Jan. 20.
An order to recover Rs 589.2 crore, including penalty and interest, from Coromandel International Ltd. has been quashed following an appeal, according to an exchange filing on Thursday.
The additional commissioner of central tax of the Visakhapatnam Central GST Commissionerate had filed the recovery order against the company. The Office of the Commissioner (Appeals), Central Tax and Customs, Guntur, quashed the order on Jan. 20, the company said.
In November, the fertiliser manufacturer received a goods and services tax demand order of Rs 11 crore from the Raigad tax authority. It had received a GST notice of Rs 7,30,70,120 as well as a fine of Rs 3,75,73,912.
Q2 Performance
Coromandel International's revenue grew to Rs 7,432.8 crore, representing a 6.4% rise for the Sept. 30, 2024, quarter as compared to Rs 6,988.1 crore for the same period last year.
The agrochemical manufacturer's net profit slipped 13% to Rs 659.1 crore for the July-September quarter as against Rs 754.6 crore for the year ago period.
The company's earnings before interest, tax, depreciation and amortisation fell to Rs 974.8 crore, denoting 8% fall for the second quarter of the current fiscal 2025 from Rs 1,058.7 crore in the same quarter in the previous financial year. Its margins narrowed to 13.1% for the quarter under review as contract to 15.2% for same period in the corresponding year.
Shares of Coromandel International closed 4.04% higher at Rs 1,848.75 apiece on the National Stock Exchange, compared to a 0.22% rise in the benchmark Nifty 50. The share price has risen 9.26% in the last 12 months.
Out of 11 analysts tracking the company, eight maintain a 'buy' rating on the stock, one maintains 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 7.3%.
