Coromandel International posts Q2 results

October 28, 2021

Coromandel International Limited, India’s leading Agri solutions provider is in the business of Fertilisers, Crop Protection, Bio pesticides, Specialty Nutrients, Organic Fertilizer and Retail. The Company has reported the financial results for the quarter ended 30 September 2021.

Highlights – Standalone Results:

Total Income in Q2 was at Rs. 6,184 Cr compared with Rs. 4,605 Cr of same period previous year, registering a growth of 34% over previous year
EBITDA for Q2 was Rs. 740 Cr, declined by 12% over Q2 of previous year.
PAT for Q2 was Rs. 519 Cr, vs Rs. 582 Crs. in Q2 of previous year
Total Income in H1 was at Rs. 9,850 Cr compared with Rs. 7,828 Cr of same period previous year, registering a growth of 26% over previous year.
EBITDA for H1 was Rs. 1,220 Cr, vs. Rs. 1,250 crs. in H1 of previous year.
PAT for H1 was Rs. 849 Cr vs Rs. 830 Crs. of previous year.

Review of Businesses

Nutrient and Allied Business

The Revenue for the quarter was at Rs. 5,503 Crs. compared with Rs. 4,000 Crs. in the corresponding quarter of the previous year, growing at 38%. Profit before interest and tax for the quarter was Rs.611 Cr as against Rs. 706 Cr in the corresponding quarter of the previous year.

The Revenue for H1 was at Rs. 8,563 Cr compared with Rs. 6,807 Cr in the corresponding period of the previous year, growing at 26%. Profit before interest and tax for H1 was Rs. 1,010 Cr as against Rs. 1,076 Cr in the corresponding period of the previous year.

Crop Protection Business

The Revenue for the quarter was at of Rs.695 Cr compared with Rs. 637 Cr in the corresponding quarter of the previous year, growing at 9%. Profit before interest and tax for the quarter was Rs.118 Cr, compared with Rs. 133 Cr in the corresponding quarter of the previous year.

The Revenue for H1 was at Rs. 1,318 Cr compared with Rs. 1,056 Cr in the corresponding period of the previous year, growing at 25%. Profit before interest and tax for H1 was Rs. 197 Cr as against Rs.188 Cr in the corresponding period of the previous year.

Consolidated Results

Coromandel’s total income for the quarter was at Rs.6,166 Cr as against Rs.4,620 Cr in the corresponding quarter of the previous year. The profit after tax for the quarter was at Rs. 519 Cr as against Rs.589 Cr in the corresponding quarter of the previous year.

Commenting on the financial results, Mr. Sameer Goel, Managing Director, Coromandel International Ltd.

“Coromandel registered revenue growth of 34% during the quarter, driven by both nutrient and crop protection business. Coromandel ensured that agri inputs are made available to the farmers in its key operating markets and promoted the use of balanced nutrition including organic fertilizer to help to rejuvenate the soil and farm productivity.

Our Sourcing team ensured timely availability of key raw materials and the operational flexibility at the plants helped in high-capacity utilisation during the quarter. The company has increased its Bio extraction capacity, built a new liquid fertilizer plant and commissioned its 10th evaporator. Several capital projects for enhancing storage and de-bottlenecking the capacity in its plants are planned to be completed during this year. The New Products introduced by the company during the first half have received encouraging response from the market. The company continues to focus on new product development & applications and has a rich product pipeline for future growth.

The company ensured safe plant operations and worked with the local administration and communities to prevent the spread of COVID. The company ran an organisation wide vaccination program for its employees and its workmen. In this quarter, the company has installed seven oxygen generating plants at the Government hospitals to support healthcare infrastructure.

With healthy reservoir levels and good soil moisture conditions, we expect good traction in the upcoming Rabi season. Coromandel will continue to work on integrated crop management solution and ensure timely availability of agri-inputs to support the needs of the farming community.

About Coromandel

Coromandel International Limited is amongst India’s pioneers and leading Agri solutions provider, offering diverse products and services across the farming value chain. It operates in two major segments: Nutrient and other allied businesses and Crop Protection. These include Fertiliser, Crop Protection, Bio pesticides, Specialty Nutrients and Organic compost businesses. The Company is 2nd largest manufacturer and marketer of Phosphatic fertiliser in India. The Company’s Crop Protection products are marketed in India as well as in international geographies, offering wide range of technical and formulation products. The Specialty Nutrients business of the Company focuses on water soluble fertiliser and secondary & micronutrients segments. The Company is leading marketer of Organic fertiliser in India and has recently added bio pesticide solutions to its portfolio. It also operates a network of around 750 rural retail outlets across Andhra Pradesh, Telangana, Karnataka and Maharashtra. Through these Retail outlets, the Company offers farming services including crop advisory, soil testing and farm mechanization to around 3 million farmers. The Company has a strong R&D and Regulatory setup, supporting the businesses in process development and new product introduction. The Company has 16 manufacturing facilities, producing wide range of Nutrient and Crop Protection products, which are marketed through an extensive network of dealers and its own retail centers.

The Company clocked a turnover of Rs. 14,163 Crores during FY2021. Its efforts towards environment have been well recognized by international organizations like UNDP and has also been voted as one of the ten greenest companies in India by TERI. Coromandel is a part of the INR 417 Billion (41,713 Crores) \Murugappa Group.

About Murugappa Group

Founded in 1900, the INR 417 Billion (41,713 Crores) Murugappa Group is one of India’s leading business conglomerates. The Group has 29 businesses including ten listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., CG Power and Industrial Solutions Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd. and Wendt (India) Ltd.

The Group holds leadership position in several product lines including Abrasives, Technical Ceramics, Electro Minerals, Auto Components & Systems, Bicycles, Fertilisers, Sugar, Tea and Spirulina (Nutraceuticals). The Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Montra, Mach City, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The Group fosters an environment of professionalism and has a workforce of over 53,000 employees.

For more details, visit www.murugappa.com