Coromandel International (COROMANDEL) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 marked record phosphatic fertiliser production of 519,158 MT, up 20% YoY, and record net profit of Rs.52.88 crore.

• Growth was supported by higher production, improved efficiencies, sourcing savings and commissioning of the third granulation train; subsidy reductions, higher fuel costs and weak rainfall pressured profitability.

• Strategy targets 6 lakh MT production in FY02 and doubling the business in less than three years through capacity use, strategic growth and acquisitions.

Financial highlights

• Operating income was Rs.598.79 crore vs Rs.603.59 crore YoY; total income was Rs.612.82 crore vs Rs.613.86 crore.

• Profit before tax was Rs.70.38 crore vs Rs.71.55 crore; net profit rose to Rs.52.88 crore from Rs.48.05 crore.

• EPS reached Rs.27.18 vs Rs.22.79; proposed equity dividend was 65%, following a 55% interim dividend in the prior year.

• Five-year CAGR through FY01: top line 13%; bottom line 17.5%, against industry growth of ~3% annually.

Outlook and guidance

• FY02 production target: 6 lakh MT; 7 lakh MT is planned subject to required approvals and further utilisation of the Vizag plant.

• Ambition is to double the business in less than three years, with organic growth complemented by acquisitions, mergers, outsourcing and capacity additions.

• Domestic 'P' nutrient growth is forecast at 3.5%-4% over the next three years; near-term performance is expected to depend on customer focus, promotion and subsidy-policy clarity.