Coromandel International posts Q1 results

Hyderabad, July 27, 2022: Coromandel International Limited (BSE: 506395, NSE: COROMANDEL), India’s leading Agri solutions provider is in the business of Fertilisers, Crop Protection, Bio Pesticides, Specialty Nutrients, Organic Fertiliser and Retail. The Company has reported the financial results for the quarter ended 30th June 2022.

Highlights – Standalone Results:

• Total Income in Q1 was at Rs.5,776 Cr compared with Rs.3,677 Cr of same period previous year, registering a growth of 57% over previous year.
• EBITDA for Q1 was Rs.683 Cr registering growth of 42% over Q1 of previous year.
• PAT for Q1 was Rs.496 Cr vs Rs. 329 Cr in Q1 of previous year registering a y/y growth of 50%

Review of Businesses

Nutrient and Allied Business

The Revenue for the quarter was at Rs.5,111 Cr compared with Rs.3,070 Cr in the corresponding quarter of the previous year. Profit before interest and tax for the quarter was Rs. 602 Cr as against Rs. 399 Cr in the corresponding quarter of the previous year.

Crop Protection Business

The Revenue for the quarter was at Rs. 654 Crs Vs. Rs. 623 Crs compared to same quarter previous year. Profit before interest and tax for the quarter was Rs. 85 Cr compared with Rs. 79 Cr in the corresponding quarter of the previous year.

Consolidated Results

Coromandel’s total income for the quarter was at Rs.5,783 Cr as against Rs. 3,686 Cr in the corresponding quarter of the previous year. The profit after tax for the quarter was at Rs. 499 Cr as against Rs.338 Cr in the corresponding quarter of the previous year.

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

“Coromandel registered a strong performance in Q1 with a 57% revenue growth over the same quarter last year, with growth in both nutrient and crop protection businesses due to high price of raw materials.

The company focused on leveraging the operational efficiencies at the plants, smart sourcing enabled timely availability of raw materials and marketing efforts backed by agronomist activities ensured meeting the agricultural needs of the farming community. During the quarter, the company launched 4 new products in the Crop Protection Segment which have been well received by the farmers. Further, the company’s R&D team has developed a rich product pipeline of technically superior products which are planned to be introduced during the year. The company is successfully conducting drone spraying trials in the farmer’s fields with speciality nutrition and crop protection products.

The company’s capital expansion program is on track with the proposed Sulphuric Acid plant at Vizag and is building a multi-Purpose plant for Crop protection. The investment in the mining company, BMCC, Senegal through its 100% subsidiary Coromandel Chemicals Ltd is expected to be completed in the coming quarter which will help in securing our critical phosphate rock needs. The company through its 100% subsidiary, Dare Ventures Limited, invested in two Agri start-ups EcoZen and String Bio.

We are witnessing adequate monsoon coverage and higher reservoir levels which augers well for Indian agriculture in our key operating markets. We are ensuring timely availability of agri-inputs to the farming community through our dealers and our Retail outlets. Coromandel, with its diversified presence across the agri value chain, will continue to provide Balanced Nutrition and Integrated Pest Management solutions to maximise farm productivity.”

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 Products, Specialty Nutrients and Organic 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. The Bio Products business of the company focusses on plant extractions for various applications. It also operates a network of around 750 rural retail outlets across Andhra Pradesh, Telangana and Karnataka. 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 17 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.19,255 Crores during FY21-22. 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 547 Billion (INR 54,722 Crores) of the Murugappa Group.

About Murugappa Group

Founded in 1900, the INR 547 Billion (INR 54,722 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, Power Conversion Equipment, Transformers & Reactors for the Power T&D segment, Solutions for Railways in Rolling Stock & Signalling Equipment, 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, Rhodius, 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 59,000 employees.

For more details, visit https://www.murugappa.com/