Coromandel Int'l rallies 8%, hits 52-week high on strong Q4 results

Q4FY20 Ebitda surged 51 per cent to Rs 391 crore, while margins expanded 380 basis points to 13.6 per cent from 9.8 per cent in Q4FY19

Shares of Coromondel International rallied 8 per cent to hit a 52-week high of Rs 700 on the BSE on Wednesday after the company’s consolidated profit before depreciation, interest, taxes and exceptional item (EBITDA) for the quarter ended March 31, 2020 (Q4FY20) increased by 51 per cent to Rs 391 crore as against Rs 259 crore clocked during the corresponding quarter last year. EBITDA margins expanded 380 basis points to 13.6 per cent from 9.8 per cent in Q4FY19.

Besides, revenue from operations during the quarter under review grew 8.75 per cent to Rs 2,869 crore from Rs 2,638 crore in the year ago quarter. The board has recommended a dividend of Rs 12 per equity share (representing 1,200 per cent) on the equity shares of Re 1 each fully paid up for the financial year 2019-20.

The company attributed the strong performance during the quarter to Nutrient and allied businesses and a good recovery in crop protection business. The performance was further supported by external factors like above normal monsoon, good reservoir levels which resulted in improved sowing and agri input consumption in the Company's key markets, it said.

Backed by recent agricultural reforms announced by the Government, combined with good reservoir levels and forecast of a normal monsoon, the company expects healthy agricultural growth in the upcoming Khariff season.

Coromondel International is a leading agri solutions provider is in the business of fertilisers, crop protection, bio pesticides, specialty nutrients, organic manure, and retail.

At 09:30 am, the stock was trading 3.3 per cent higher at Rs 672 on the BSE, as compared to an unchanged S&P BSE Sensex at 30,610 points. The trading volumes on the counter more-than-doubled with a combined 470,000 shares changing hands on the NSE and BSE till the time of writing of this report.