Coromandel International (COROMANDEL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a swift recovery in monsoons, improved reservoir levels, and a 3% increase in crop sown area year-over-year, supporting strong agricultural demand.

• India's leading agri solutions provider, serving 20 million farmers with a pan-India presence and exports to 80+ nations.

• Focus on integrated operations, innovation, and sustainability, with strong R&D and technology orientation.

• Strategic investments in core businesses, adjacencies, and technology-led step-outs like drones and agtech.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, with auditors issuing an unmodified review report.

Financial highlights

• Q1 FY25 consolidated revenue from operations was ₹4,728.83 crore, down from ₹5,738 crore in Q1 FY24, mainly due to lower subsidy rates.

• EBITDA at ₹506 crore, down 29% year-over-year; PAT at ₹309.24 crore, down 37% year-over-year.

• Basic EPS for Q1 FY25 was ₹10.57, compared to ₹16.80 in Q1 FY24.

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

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

Outlook and guidance

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

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

• Nano DAP is expected to substitute 20–25% of DAP consumption industry-wide over 3–5 years.

• Incremental 10–15% growth targeted from new initiatives and adjacencies over 3–5 years.

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