Coromandel International Q2 results: Net profit rises 2% to Rs 755 crore

Fertiliser maker Coromandel International, part of the Murugappa Group, has posted a 2 per cent rise in net profit during the second quarter of the financial year FY24 ended September 2023, to Rs 755 crore as against Rs 741 crore for the quarter ended September 2022.

Coromandel's total income for the quarter ended September 2023 was at Rs 7,033 crore, versus Rs 10,145 crore for the quarter ended September 2022. "Coromandel displayed a resilient performance in a challenging business environment, sustaining its profitability and improving its working capital position during the quarter. The company's key operating markets were impacted by sub-normal monsoons affecting the agri inputs offtake," said Arun Alagappan, executive vice chairman of Coromandel International.

Nutrient and Allied Business

The revenue for the quarter ended September 2023 was at Rs 6,307 crore as against Rs 9,461 crore for the quarter ended September 2022. Profit before interest and tax for the quarter was Rs 998 crore versus Rs 955 crore for the quarter ended September 2022.

"The Nutrient and Allied businesses focused on nutrient consumption during the quarter. It has introduced Nano DAP, a patented nanotechnology-based fertiliser and the initial customer feedback has been quite encouraging. The business commissioned its 1650-tonne-per-day state-of-the-art sulphuric acid plant at Visakhapatnam with an investment of Rs 400 crore to improve its backward integration capabilities. In addition, it has set up a 6 mld desalination plant to meet its water requirements," he said.

Crop Protection Business

The revenue for the quarter ended September 2023 was at Rs 722 crore as against Rs 702 crore for the quarter ended September 2022. Profit before interest and tax for the quarter was Rs 88 crore versus Rs 103 crore for the quarter ended September 2022.

"The Crop Protection business of the company had a healthy volume growth, improving its performance in exports and domestic formulations segments; however, global industry headwinds viz. higher channel inventory and decline in commodity prices impacted price realisation. The business is closely evaluating the opportunities in the specialty chemicals and CDMO space and has initiated regulatory and infrastructure activities at the new Dahej site," he added.