Share price of this mid-cap stock moved up by 7.5 percent on BSE to hit an intraday high at Rs. 1,199 in the morning trading session of Friday, despite reporting a fall in net profit as well as revenue from operations.
With a market capitalisation of Rs. 34,533.7 crore, at 11:02 a.m. the shares of Coromandel International Limited were trading in the green at Rs. 1,173.6, up by 5.22 percent.
The fluctuations in the share prices were observed after the company announced its financial results on 26th April for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges.
The consolidated revenue from operations stood at Rs. 3,912.72 crore in Q4 FY23-24, decreasing by 28.4 percent QoQ from Rs. 5,464.15 crore in Q3 FY23-24 and fell by nearly 28.5 percent YoY from Rs. 5,475.82 in Q4 FY22-23.
Further, the net profit of one of India’s leading agri solutions provider decreased by 28.14 percent QoQ from Rs. 228.11 crore in Q3 FY23-24 to Rs. 163.91 crore in Q4 FY23-24 and fell on a year-on-year basis by 33.5 percent from Rs. 246.44 crore in Q4 FY22-23 to Rs. 163.91 in Q4 FY23-24.
According to the regulatory filings on the stock exchanges, the FY23-24 was marked by a challenging business environment, with sub-normal monsoons and lower reservoir levels in the company’s core operating markets affecting the agri-inputs consumption.
Further, the sharp corrections in subsidy rates in the second half of the year, along with worldwide headwinds in Crop Protection, caused margin pressure.
Despite the unsatisfactory financial results, Coromandel International’s share prices experienced an upward movement, attributed to several factors.
Fertilizer Plants operated at higher capacity at 95 percent levels and improved its backward integration capabilities, whereas, Crop Protection experienced a strong 20 percent volume growth in both the international and domestic markets and plans to introduce new molecules through captive and in-licensing arrangements.
Retail stores increased farm-level outreach and expanded its footprint in new markets in FY2, and the company has also scaled up its drone spraying services, covering over 25000 acres during the year.
As part of its diversification plan, Coromandel entered into Speciality chemicals by using its existing infrastructure and maintained its focus on
CDMO opportunities.
Investment in drone company Dhaksha is progressing well with a strong order book of around Rs. 250 crores from the Defence and Agriculture segments.
Moreover, the Board of the company has recommended a final dividend of Rs. 6 per equity share of the face value of Re. 1 each (600%) for FY23-24 despite lower profitability, subject to the approval of shareholders’ approval.
The final dividend, if approved, will be paid on or after August 27, 2024, but within 30 days from the date of the AGM. The record date for payment of dividend will be July 26, 2024.
The company has delivered positive returns of about 5.8 percent in the last six months, and nearly 25.6 percent in the last one year. However, so far in 2024, it has given around 5.4 percent of negative returns.
Coromandel International Limited is India’s second-largest manufacturer and marketer of Phosphatic fertiliser and amongst India’s leading Agri solutions providers, offering diverse products and services across the farming value chain.
The company operates in two major segments: Nutrient and other allied businesses and Crop Protection, including fertiliser, crop protection, bioproducts, specialty nutrients and organic businesses.
Written by Shivani Singh
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