Coromandel International hits 52-week low on weak Q3 earnings

The company has signed a definitive share purchase agreement to acquire promoters' stake up to a maximum of 56.28% in Liberty Phosphate at Rs 241 a share.

Coromondel International has dipped 7% to Rs 216 after reporting 48% year-on-year (yoy) drop in its consolidated net profit at Rs 68.39 crore for the third quarter ended December 31, 2012 (Q2) due to fall in operational income and higher interest cost.

“Total income from operation has declined by 5% yoy at Rs 2,424 crore, while interest burden increased 75% to Rs 53.64 crore over the same quarter previous year,” Coromandel International said in a statement.

Meanwhile, the company said it has signed a definitive share purchase agreement to acquire promoters' stake up to a maximum of 56.28% in Liberty Phosphate at Rs 241 a share.

Coromandel will also make an open offer to acquire a further 26% stake from all public shareholders of Liberty Phosphate at a price of Rs 241 a share, it added.

The stock opened at Rs 227 and hit a 52-week low of Rs 210 on the NSE. A combined 355,016 shares have changed hands on the counter so far on both the exchanges.