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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹5,464 Cr
verified against source
Revenue YoY
-33.8%
reported change
EBITDA
₹358 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Coromandel's Q3 FY24 results were sharply down YoY, with consolidated revenue of ₹5,523 crore (-33.8%), EBITDA of ₹358 crore (-54.2%), and PAT of ₹288 crore (-69.3%). The steep decline was driven by lower fertilizer volumes (down 11%), a sharp downward revision in NBS subsidy rates, and rising raw material costs. The crop protection segment was a bright spot, with 21% volume growth and EBIT margin expansion from 12.4% to 13.8%. Management highlighted the government's new reasonableness margin guidelines (12% PBT for integrated manufacturers) as manageable and not a deterrent to investment. The company is investing ₹2,000 crore in backward integration (sulfuric/phosphoric acid plant) and has a strong order book of ₹300 crore for its drone subsidiary Dhaksha. Near-term risks include continued subsidy rate pressure and potential margin compression if raw material costs remain elevated.
Colored figures show movement against the previous available record.
Guidance to track
- Board approved setting up a sulfuric acid plant at Karnataka fertilizer unit and a 200,000-ton phosphoric acid plant at Kakinada, with total capex of ~₹2,000 crore.
- Management is evaluating debottlenecking options at existing plants to increase capacity, with details to be shared in the next call.
- Company's patented Nano DAP has received encouraging market response; Kakinada nano plant to be ramped up.
- Company plans to add 50 new retail stores by end of FY24, expanding footprint in new markets.
Risks flagged
- NBS rates were sharply revised downward for Rabi season, and raw material prices have risen since August. Management is representing for an interim correction, but it seems unlikely.
- New government guidelines cap PBT margins at 12% for integrated manufacturers. While management sees no immediate impact, the cap could limit upside in high-margin years.
- An ammonia gas leak occurred at the Ennore facility in December, leading to plant closure. Safety measures are being taken, but operational disruption and potential liability exist.
- Elevated inventory, demand slowdown, and declining commodity prices globally continue to pressure the crop protection business, despite volume growth.
Key quotes
- The government has issued an office memorandum in January, which gives the broad guidelines in terms of the reasonableness margin for all the fertilizer companies.
- Our nano plant in Kakinada has to come full stream, and we also want to wait and see how these new technology adoptions are happening.
- Happy to state that some commercial transactions have happened during the quarter. So that beginning has happened.
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