Coromandel International Q1 net slumps 38% to ₹309 crore on lower revenue

Coromandel International's Q1 net profit drops 38% to ₹309 crore, despite healthy sales; new MD expects favourable agri inputs sector.

Agriculture solutions provider Coromandel International reported consolidated net profit for June quarter declined almost 38% to ₹309 crore, from the ₹494 crore a year earlier.

The lower net profit came amid total income falling more than 16% to ₹4,783 crore (₹5,738 crore).

Executive Director-Nutrient Business S.Sankarasubramanian, who on Wednesday was appointed Managing Director and CEO by the Board, said “during the quarter, Coromandel made sequential recovery, registering healthy volume sales in nutrients and crop protection businesses despite the delay in onset of monsoons. However, margins for the fertilisers business were impacted due to lower subsidy rates and rise in input costs.”

For the quarter ended March, the Murugappa Group company had reported a net profit of ₹163.91 crore and a total income of ₹3,996.25 crore.

With improved business scenarios like above normal south west monsoons in key markets, increase in crop acreages and improving global agrochemical scenario, the company expects a favourable environment in the agri inputs sector, the new MD and CEO said in a release.

On Mr.Sankarasubramanian’s elevation, the company said his association with the Group goes back to 1993. He started his career at E.I.D Parry (India) in Corporate Finance, where he progressed through various roles before joining Coromandel International Limited in 2003, the company said.

Providing a review of its businesses, the company said revenue from Nutrient and Allied business for the June quarter was 19% lower y-o-y at Rs.4,198 crore (Rs.5,192 crore). Crop Protection business revenue stood at Rs.551 crore (Rs.556 crore). The company plans to set up multi product plants for herbicide and fungicide manufacturing and activities for the same will commence during the year.