Coromandel International sees significant decline in Q3 2023 financials

India’s Coromandel International Limited disclosed its financial results for the quarter ending 31st December 2023, revealing a downturn across major financial indicators. The company’s total income for Q3 experienced a 34% drop, amounting to Rs. 5,510 Cr ($665.86mn) compared to Rs. 8,350 Cr ($1.01bn) in the previous year. Similarly, quarterly EBITDA and PAT saw declines of 54% and 55%, respectively.

Nutrient and allied businesses saw the financials drop, with the revenue for Q4 2023 at Rs. 4,892 Cr ($591.18mn) as against Rs. 7,710 Cr ($931.72) for  Q3 2023. The revenue for the nine months ending Dec 31 2023 was at Rs. 16,391 Cr ($1.98bn) compared with Rs. 22,281 Cr ($2.69bn) in the corresponding period of the previous year.

Its crop protection business showed a less pronounced decline, with the revenue for the quarter ending December 2023 at Rs. 612 Cr ($73.96mn), as against Rs. 651 Cr ($78.67mn) for the quarter ending December 2022.

The executive vice chairman of Coromandel, Arun Alagappan, attributed the weak financial results to external factors like subpar monsoons and decreased crop sowings, compounded by adverse changes in NBS rates and rising raw material costs. Despite these hurdles, Coromandel achieved market share growth in its nutrient and allied businesses and reported volume growth in its crop protection Bbsiness.

Looking forward, Coromandel said it remains committed to investing in value creation, with plans to expand its Kakinada Fertiliser unit and enhance cost efficiency, which aligns with the country’s vision of self-reliance. The company is also pioneering drone technology in agriculture, signaling a strategic effort to address short-term challenges in the agri-inputs industry.