Coromandel International Limited, India’s leading agri solutions provider is in the business of Fertilisers, Crop Protection, Bio Pesticides, Specialty Nutrients, Organic Manure and Retail. The Company has reported the financial results for the quarter ended Sep 2020.
Consolidated performance for the quarter ended Sep 2020
During the quarter ended Sep 2020, the Company’s consolidated total income stood at Rs4,620cr in comparison to the corresponding quarter last year of Rs4,867cr. Profit before depreciation, interest, taxes and exceptional item (EBITDA) for the quarter ended Sep 2020 has grown by 18% to Rs845cr vs. Rs713cr during corresponding quarter of last year. Consolidated net profit after tax for the quarter is Rs589cr in comparison to Rs504cr for the corresponding quarter last year registering a year on year growth of 17%.
For the half year ended Sep 2020, the Company’s consolidated total income is Rs7,843cr (Half year ended Sep 2019 Rs7,008cr), EBITDA is Rs1,260cr, grown by 39% in comparison to Half year ended Sep 2019 Rs909cr and profit after tax has grown by 48% at Rs840cr (Half year ended Sep 2019 Rs566cr).
Standalone performance for the quarter ended Sep 2020
During the quarter ended Sep 2020, the Company’s standalone total income stood at Rs4,605cr in comparison to the corresponding quarter last year of Rs4,865cr. Profit before depreciation, interest, taxes and exceptional item (EBITDA) for the quarter ended Sep 2020 has grown by 17% to Rs837cr vs. Rs713cr during corresponding quarter of last year. Standalone net profit after tax for the quarter is Rs582 in comparison to Rs503cr for the corresponding quarter last year registering a year on year growth of 16%.
For the half year ended Sep 2020, the Company’s standalone total income is Rs7,828cr (Half year ended Sep 2019 Rs7,007cr), EBITDA is Rs1,250cr, grown by 38% in comparison to Half year ended Sep 2019 Rs908cr and profit after tax has grown by 47% at Rs830cr (Half year ended Sep 2019 Rs566cr).
Commenting on the financial results, Mr. Sameer Goel — Managing Director, Coromandel International Ltd. said: “Coromandel had a strong performance in Q2 FY21, despite the unprecedented external environment posed by COVID 19 pandemic. Better than normal rainfall in the country specially in the Company’s key markets, good soil moisture conditions and pro-active steps taken by the Government for Agriculture have resulted in increased crop sowing area and very good demand for agricultural inputs. However, the excessive and continuous rainfall in September has resulted in crop losses and postponement of some agricultural applications.
The Fertilizer business registered a good performance during the first half and improved the phosphatic sales volume by 15% over the corresponding period last year. The early onset of monsoon and the resultant advancement in demand led to lower channel inventory. The manufacturing plants continued its operations and operated at 90 % capacity vs. 86% of last year for Q2. The business benefitted from the backward integration of its second phosphoric acid plant at Vizag. De-bottlenecking of operations at Vizag and Kakinada is progressing as per plan. Crop Protection segment bounced back with a solid performance during the quarter and first half of the year. Overall, the business grew by 35% for the first half and 26% in Q2 vs. the same period prior year.
The business registered strong growth in the domestic market on both B2B and B2C segments backed by a good monsoon, customer connect initiatives and scale-up of its new product portfolio. The business performed well in select export markets, while the Biopesticides business registered impressive growth in the developed global markets. The business has strengthened its new product development and has set up Strategic Partnerships with global players. It has been successful in launching new products to strengthen its product portfolio. The new products are now resulting in over 25% of the domestic formulation business turnover.
During the quarter, the business introduced a broad-spectrum post emergence herbicide under the brand name “Lottery” to strengthen its offerings in the corn segment. The business continues to focus and accelerate its efforts in this area, including 9/3 registrations and introducing combination molecules for both domestic and international markets. Coromandel! continues to promote Greener Solutions through its Organic fertilizers and Bio Pesticides business. Organic, Bio and Speciality Nutrient businesses continued to grow stronger with the focused product approach. All the Retail Stores were fully functional during the half-year, enabling farmers to procure agri-inputs and avail farm advisory solutions. Retail stores have started providing direct delivery of products to the farmer’s field and continued to explore alternate delivery models.
Retail business successfully launched its “Centre of Excellence” to further strengthen its operations and selectively expand its footprint. The Company leveraged digital technology ensuring last-mile connectivity with channel partners and farmers providing value delivery. It further strengthened the engagement with Agri Research Institutions, Farm Produce Organisations and entered into collaborative alliances with key players in the industry. The Company navigated well through the Covid pandemic taking utmost care of the safety of its employees and the sustainability of its operations. Awareness creation, education, relief and rehabilitation interventions were continued in and around its area of operations.
With a healthy reservoir position and good soil moisture conditions, the outlook for Rabi appears positive. Coromandel! will continue its focus on business excellence and driving its long-term strategic initiatives for sustained growth. Coromandel as a leading agri solution provider will continue to drive farm productivity and support farmer’s prosperity.”
Coromandel International Ltd is trading at Rs732.40 per piece up by Rs13.5 or 1.88% from its previous closing of Rs718.90 on the BSE, at 10:46 am.