Coromandel International Ltd
NSE:COROMANDEL
Coromandel International Ltd
Coromandel International Ltd. emerges as a prominent player in the agri-solutions domain, deeply rooted in India's agricultural heartland. Established with the intent to bolster the farming community, Coromandel extends its reach across a series of verticals that ensure a robust value chain from manufacture to marketplace. The company excels in the production of fertilizers, marketing a diverse portfolio ranging from phosphatic to complex fertilizers, crafted to cater to the varying needs of the soil and crops. With a strategic focus on innovation, Coromandel also forays into specialty nutrients and crop protection solutions, which includes pesticides, fungicides, and other agri-protection products, fortifying crops against adversities and enhancing yield. This holistic approach not only fosters productivity for the farmers but significantly amplifies food security for the nation.
Coromandel International’s operational model adeptly combines manufacturing prowess with a wide-reaching distribution network. The company leverages its advanced manufacturing facilities, which are strategically located to harness efficient supply chain logistics and optimize production capabilities. Meanwhile, Coromandel's extensive retail network, comprising numerous rural retail outlets, serves as the critical conduit to reach millions of farmers, offering not just products but also indispensable advice and services. This dual strategy—of ensuring high-quality product delivery while nurturing a strong, consultative relationship with the end-user farmers—creates a profitable loop. The farmers’ success translates into repeat business and a solidified market presence for Coromandel. As a result, the company's financial robustness is bolstered by this intricate synergy of production efficiency, market penetration, and relentless focus on agricultural enhancement.
Coromandel International Ltd. emerges as a prominent player in the agri-solutions domain, deeply rooted in India's agricultural heartland. Established with the intent to bolster the farming community, Coromandel extends its reach across a series of verticals that ensure a robust value chain from manufacture to marketplace. The company excels in the production of fertilizers, marketing a diverse portfolio ranging from phosphatic to complex fertilizers, crafted to cater to the varying needs of the soil and crops. With a strategic focus on innovation, Coromandel also forays into specialty nutrients and crop protection solutions, which includes pesticides, fungicides, and other agri-protection products, fortifying crops against adversities and enhancing yield. This holistic approach not only fosters productivity for the farmers but significantly amplifies food security for the nation.
Coromandel International’s operational model adeptly combines manufacturing prowess with a wide-reaching distribution network. The company leverages its advanced manufacturing facilities, which are strategically located to harness efficient supply chain logistics and optimize production capabilities. Meanwhile, Coromandel's extensive retail network, comprising numerous rural retail outlets, serves as the critical conduit to reach millions of farmers, offering not just products but also indispensable advice and services. This dual strategy—of ensuring high-quality product delivery while nurturing a strong, consultative relationship with the end-user farmers—creates a profitable loop. The farmers’ success translates into repeat business and a solidified market presence for Coromandel. As a result, the company's financial robustness is bolstered by this intricate synergy of production efficiency, market penetration, and relentless focus on agricultural enhancement.
Revenue Growth: Coromandel reported Q3 revenue of INR 8,863 crores, up 26% year-on-year, with 9-month revenue reaching INR 25,759 crores, a 33% increase.
Profitability: Q3 net profit fell slightly to INR 488 crores from INR 508 crores last year, but EBITDA rose to INR 805 crores, up from INR 722 crores, driven by strong crop protection performance.
Crop Protection Outperformance: Crop Protection revenue grew 24% to INR 783 crores in Q3, with EBIT margins jumping from 14% to 30%. Mancozeb exports and new product launches were key drivers.
Fertilizer Volumes & Margins: Fertilizer production hit a record 9.9 lakh tonnes in Q3, up 18%, but margins came under pressure from higher raw material costs and rupee depreciation.
Backwards Integration Progress: Backward integration projects for sulfuric and phosphoric acid at Kakinada are on track and expected to support margins; management maintains annual EBITDA/tonne guidance of INR 5,000–5,500.
Subsidy Flows Robust: Timely subsidy collections continued, supporting cash flow, although subsidy outstanding rose year-on-year.
Retail Expansion: Retail business grew 20% YoY in Q3, adding 84 stores and bringing the total to 1,113 outlets.
Outlook: Despite industry challenges from weather and input costs, management remains confident in delivering annual targets and further growth, especially in Crop Protection and value-added fertilizer segments.
