Coromandel International (COROMANDEL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong performance with revenue from operations rising 27% year-over-year to ₹6,935 crore, EBITDA up 102% to ₹722 crore, and PAT up 123% to ₹508 crore, driven by robust monsoon, improved crop sowing, and favorable agri output estimates.

• Government initiatives, including irrigation projects and fertilizer subsidies, supported industry growth and ensured fertilizer availability, with a notable shift from DAP to NPK in northern markets.

• All business segments saw volume growth, with plants operating at high capacity and new product launches contributing to performance.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2024, and declared an interim dividend of ₹6 per share.

• Plans to establish a wholly owned subsidiary in the Netherlands with an investment up to €100,000.

Financial highlights

• Consolidated revenue from operations for Q3 was ₹6,935 crore, up 27% year-over-year; nine months: ₹19,097 crore, up 5%.

• Q3 consolidated EBITDA was ₹722 crore (vs. ₹358 crore last year); nine-month EBITDA was ₹2,202 crore (vs. ₹2,126 crore).

• Net profit after tax for Q3 was ₹508 crore (vs. ₹228 crore last year); nine-month net profit was ₹1,476 crore.

• Basic EPS for Q3 FY25 at ₹17.39, up from ₹7.84 year-over-year; nine months: ₹50.53.

• Net debt to equity remains at 0.0 times, indicating a strong balance sheet.

Outlook and guidance

• Expectation of continued stable raw material prices and strong agri demand due to favorable weather and government support.

• Volume growth to be driven by debottlenecking, new capacity additions, and expansion into northern markets; retail store count to double by FY27.

• Margin improvement anticipated from value-added products, backward integration, and new plant commissioning.

• Interim dividend of ₹6 per share to be paid on or after February 19, 2025; record date set as February 5, 2025.

• Forward-looking statements highlight growth prospects and evolving business strategies, with caution on potential deviations due to market, regulatory, and economic factors.