BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Coromandel International Ltd.'s operating performance beat our estimate, largely led by strong volume growth of 21% YoY in total manufactured phosphatic fertiliser (di-ammonium phosphate and nitrogen-phosphorous-potassium) to 0.91 metric million tonne (our estimate: 0.83 mmt) and better Ebitda/million tonne.
The company reported a revenue of Rs 83.1 billion (our estimate: Rs 68 billion) in Q3 FY23, up 64% YoY, led by strong sales volume in NPKs and higher subsidy realisation in the nutrients business. The nutrient and other allied business segment grew 72% YoY to Rs 77.1 billion. The crop protection segment grew 5% YoY to Rs 6.5 billion, led by slowdown in export challenges in Mancozeb
Coromandel's better margins were on account of backward integration, better outsourcing of raw materials, and favorable agricultural environment in most of its key operating markets.
Factoring in strong Q3 FY23 operating performance, we raise our Ebitda estimates for FY23/FY24/FY25 by 6%/5%/7%, respectively, on improving Ebitda/mt of fertiliser business.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
