Coromandel Intl net down 20%

Hyderabad-based Coromandel International Limited posted a consolidated net profit of Rs 278.82 crore, down 20 per cent, for the second quarter ended September 2011, as compared with Rs 350.10 crore due to flat growth in sales among other factors.

Sales stood at Rs 2,792.97 crore as compared with Rs 2,773.36 crore while expenditure grew 6.5 per cent though expenses from consumption of raw material remained flat at Rs 1,428.32 crore (Rs 1,440.77 crore).

For the half year ended September 2011, the company posted a net profit of Rs 438.55 crore (Rs 471.55 crore). Kapil Mehan, managing director, Coromandel International, maintained that the dip in net profit in first half was mainly due to higher net income accrued on account of prior year subsidy income of Rs 197 crore. The quarter under review, which represents peak fertiliser demand in kharif season, was also impacted by the decline in consumption of phosphatic and potash fertilisers, which according to Mehan, is 10-11 per cent across the industry during the current kharif season.