The shares of the fertilizer manufacturer gained up to 2 percent after the company’s net profit and revenue increased by 113 percent and 57 percent in Q2FY25, respectively.
With a market capitalization of Rs 47,714.11 crore, the shares of Coromandel International Limited were trading at Rs 1,620.00 per share, increasing around 1.07 percent as compared to the previous closing price of Rs 1,639.75 apiece.
Financial Performance:-
According to the company filing, Coromandel International Limited has announced its financial performance, revenue zoomed by 6 percent on year on year basis from Rs 6,988 crore in Q2FY24 to Rs 7,433 crore in Q2FY25, however in Quarter on a Quarter basis revenue increased by 57 percent from Rs 4,729 crore in Q1FY25 to Rs 7,433 crore in Q2Y25.
Moreover, net profit is magnified drastically by 360 percent on a yearly basis from Rs 5 crore in Q2FY24 to Rs 23 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit jumped multifold times by 128 percent from Rs (83) crore in Q1FY25 to Rs 23 crore in Q2FY25.
Capex Plan:-
Moreover, the company announced corps of Rs 800 crore for the expansion of granulation facility at Kakinada, AP, and setting up of Multi-Product Plant for Pesticides at Ankleshwar, Gujarat, besides other capex programs.
Furthermore, the investment aims to enhance granulation capacity by 7.5 lakh tons annually for complex and unique fertilizers in Kakinada, Andhra Pradesh. Additionally, it will establish a state-of-the-art Multi-Product Plant for manufacturing newly off-patent fungicides in Ankleshwar, Gujarat.
In addition to major capex projects, the Board approved a fund infusion into Baobab Mining Chemical Corporation (BMCC) in Senegal for its ongoing expansion. Coromandel also announced acquiring an additional 8.8% stake in BMCC, pending regulatory approvals, raising its total shareholding to 53.8%.
Segment Performance:-
In Q1, nutrient segment sales for NPK and DAP reached 8.4 lakh tons, with NPK sales rising to 87% and unique products at 31%. POS sales increased 32% to 4.8 lakh tons, boosting market share to 11.7%. Plants operated at 96% capacity, while a new sulphuric acid plant at Vizag improved integration. Statutory clearances for phosphoric and sulphuric acid plants in Kakinada were secured, and a processing plant is being set up at BMCC Senegal.
Management Guidance:-
Management is optimistic about margin normalization as reservoir levels improve and demand rises. They plan to focus on core strengths while exploring opportunities in specialty chemicals and phosphoric-based value-added products. An improvement in margins is expected for Q2 due to efficient procurement and increased captive production.
New Product Developments:-
The company introduced Urea Super Phosphate and Paramfos Plus for balanced nutrition, with a new nano facility in Kakinada promoting the product as an alternative to conventional DAP. Crop protection volumes grew 5%, supported by 10 new product launches, including four patented products, and plans for multiproduct herbicide and fungicide plants.
Company Overview:-
Coromandel International Limited is engaged in the manufacturing and trading of farm inputs consisting of fertilizers, crop protection, specialty nutrients and organic compost. The Company’s segments include Nutrient and other allied businesses, and Crop Protection.
Written by:- Abhishek Singh
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