Coromandel International (COROMANDEL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a recovery in Indian agriculture with above-normal monsoon, improved reservoir levels, and strong industry demand, supporting crop sowing and fertilizer demand.

• Focus on integrated operations, backward integration, product innovation, and sustainability, with investments in technology, drones, and agtech.

• Strategic expansion into adjacencies like specialty chemicals, nano fertilizers, and technology-led step-outs.

• Board approved unaudited financial results for Q1 FY25 and appointed Mr. Durgashankar Subramanian as Non-Executive & Independent Director.

• Serving 20 million farmers with a pan-India presence and exports to 80+ nations.

Financial highlights

• Q1 FY25 consolidated revenue from operations was ₹4,728.83 crore, down from ₹5,738 crore in Q1 FY24; EBITDA at ₹506 crore, down 29% year-over-year.

• Net profit after tax for Q1 FY25 was ₹309.24 crore, with basic EPS at ₹10.57.

• Non-subsidy EBITDA mix improved to 25% from 16% last year.

• Zero net debt; strong balance sheet with AAA/Stable credit ratings.

• 283% stock appreciation over 5 years; market capitalization at ₹471 Billion as of June 30, 2024.

Outlook and guidance

• Expectation of a strong rabi season due to high reservoir levels and normalized channel inventory.

• Margin improvement anticipated in Q2 from efficiency gains, improved captive production, and better product mix.

• Nano fertilizer volumes expected to rise, with 1 million liters already positioned in the channel.

• Plans to expand drone spraying services to 2 lakh acres and open 100 new retail stores in FY25.

• Guidance for fertilizer segment EBITDA per ton remains intact at INR 4,500–5,000.