Coromandel International (COROMANDEL) Q2 24/25 earnings summary

Executive summary

• Strong monsoon, favorable reservoir levels, and government policy support, including higher MSPs and early NBS rate announcements, drove robust Kharif and expected Rabi seasons, increasing crop acreages and food grain output year-over-year.

• Operationally, fertilizer plants ran above 100% capacity, with 13% production growth and record sales volumes; market share in NPK and SSP increased.

• Revenue from operations for Q2 FY25 rose 6% year-over-year to ₹7,433 crore, while H1 FY25 revenue declined 4% to ₹12,162 crore compared to H1 FY24.

• Net profit after tax for Q2 FY25 was ₹659 crore, down 13% year-over-year; H1 FY25 PAT fell 22% to ₹968 crore.

• Expansion initiatives included restarting acid plants, progressing on Kakinada projects, acquiring a majority stake in BMCC, and investing in international subsidiaries.

Financial highlights

• Q2 FY25 income was ₹7,498 crore, up 7% year-over-year; H1 FY25 income was ₹12,281 crore, down 4% due to lower subsidy rates.

• Q2 FY25 EBITDA was ₹975 crore (down 8% YoY); H1 FY25 EBITDA was ₹1,481 crore (down 16% YoY).

• Q2 FY25 basic EPS was ₹22.6, down from ₹25.7 in Q2 FY24; H1 FY25 EPS was ₹33.1, down from ₹42.5 in H1 FY24.

• Net cash position at quarter-end was ₹4,214 crore; cash and cash equivalents at period end were ₹517.47 crore.

• Q2 FY25 finance cost was ₹66 crore, up from ₹46 crore in Q2 FY24.

Outlook and guidance

• Expectation of continued strong Rabi season and above-normal monsoon, supporting further volume growth.

• Capacity expansion projects underway, including a new NPK fertilizer complex, fungicide technicals plant, and granulation capacity at Kakinada to be commissioned by March 2026.

• Focus on scaling up Nano DAP and specialty fertilizers, with new capacities and product launches planned.

• Fixed processing plant at BMCC Senegal expected to start operations from Nov'24.

• Continued investment in technology and international expansion, including new subsidiaries.