Coromandel reports 88.5% dip in net profit

The company's turnover during the period declines 27% to Rs 1,948 cr

Coromandel International Limited (CIL), a manufacturer of fertilisers and crop protection products, reported an 88.5 per cent decline in net profit to Rs 14 crore in the fourth quarter of 2012-13, compared with a profit of Rs 122 crore posted in the same quarter previous year. Turnover during the period declined 27 per cent to Rs 1,948 crore from Rs 2,672 crore.

In the year ended March 2013, net profit stood at Rs 444 crore, down 36 per cent over the previous year's Rs 693 crore. Turnover was lower by 13 per cent to Rs 8,560 crore (previous year Rs 9,823 crore).

“Deficit monsoon in the key addressable markets during the year and growing price disparity between urea and phosphate prices impacted the demand for phosphatic and potassic fertilisers,” CIL managing director, Kapil Mehan, stated while commenting on the financial results.

Despite the adverse conditions, the company had improved its market share in the home state of Andhra Pradesh (AP) while maintaining it in the overall domestic market. “With monsoon expected to be normal in the forthcoming kharif season, we expect high pipeline inventories of all agricultural inputs to normalise,” Mehan said.

During the quarter under consideration, CIL commissioned its third complex fertiliser plant at Kakinada besides entering into a share purchase agreement to acquire 8.13 per cent stake in AP Gas Power Corporation Limited. The company had also acquired 48.62 stake in Liberty Phosphate Limited (LPL) and made a public announcement to acquire an additional 26 per cent equity share capital of LPL.

CIL, along with LPL, currently has 5 million tonnes  per annum capacity to manufacture complex fertiliser and single super phosphate.