Coromandel International Q2 Results: Profit Dips 13% Yet Meets Estimates
Coromandel International Ltd.'s net profit dipped 13% year-on-year in the July–September quarter of the current financial year, missing analysts' expectations.
The agrochemicals company posted a profit of Rs 659 crore in the quarter ended Sept. 30, as compared to a Rs 624 crore estimate by Bloomberg analysts.
The fertilisers, pesticides and speciality nutrients manufacturers revenue during the quarter under review rose 6.4% to Rs 7,433 crore from Rs 6,988 crore in the corresponding quarter of the previous fiscal. The Bloomberg estimate for the company's revenue was Rs 6312 crore.
The earnings before interest, taxes, depreciation and amortisation were at Rs 975 crore against Bloomberg's estimate of Rs 859 crore, whereas the Ebitda margin contracted to 13.1% from 15.2% against the Bloomberg estimate of 13.6%.
Coromandel International Q2 Earnings Highlights (Consolidated, YoY)
Revenue up 6.4% to Rs 7,432.83 crore versus Rs 6,988.13 crore.
Net profit down 13% to Rs 659.10 crore versus Rs 754.59 crore.
Ebitda down 8% to Rs 974.77 crore versus Rs 1,058.71 crore.
Margin at 13.1% versus 15.2%.
Capex Plans
Coromandel International is set to enhance its operations at the Kakinada facility with the establishment of a new granulation train aimed at increasing production capacity by 7,50,000 metric tonnes per annum. This expansion will raise the total production capacity of the Kakinada site to 3 million tonnes.
The investment required for this project is Rs 513 crore, which will be financed through a combination of internal accruals and external funding. The new granulation train is expected to be operational within 24 months and will enable the production of high-quality phosphatic fertilisers to meet the growing demands of Indian farmers.
Coromandel is also set to establish a multiproduct plant for the manufacturing of crop protection technicals at its Ankleshwar unit in Gujarat. The investment required for this expansion is Rs 164 crore and is expected to be operational within 18 months.
Shares of Coromandel International closed 2.32% higher at Rs 1,639.80 apiece, as compared to a 0.15% decline in the benchmark NSE Nifty 50.
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