Coromandel International (COROMANDEL) Q4 04/05 earnings summary

Executive summary

• FY05 performance improved on higher production and sales volumes, improved operating efficiency, and lower distribution and borrowing costs, despite delayed and inadequate subsidy compensation for rising input costs.

• Record complex-fertiliser production and sales, plus growth in specialty pesticide formulations, supported stronger profitability.

Financial highlights

• Total income was ₹1,554.17 crore vs ₹1,222.59 crore; sales from operations were ₹1,525.08 crore vs ₹1,211.57 crore, a stated 26% increase.

• Profit before interest, depreciation and tax was ₹147.99 crore vs ₹132.13 crore; PBT was ₹92.87 crore vs ₹70.77 crore; PAT was ₹69.20 crore vs ₹43.10 crore.

• Standalone EPS was ₹27.24 vs ₹16.97; PBT included a ₹1.29 crore diminution-in-investment extraordinary item.

• Proposed equity dividend was 75%, up from 65% in FY04, subject to member approval.

Outlook and guidance

• FY06 outlook assumed a normal monsoon; priorities included efficient raw-material sourcing, operating improvements, cost control, and wider product reach.

• A 300 TPD sulphuric-acid plant at Visakhapatnam was under construction and expected to be commissioned by November 2005, supporting higher complex-fertiliser volumes.

• High raw-material and freight costs remained concerns; pesticide plans emphasized specialty products, new molecules, export expansion, and entry into new geographies and crop segments.