COROMANDEL / Q3-FY24 / claim-ledger

Audit the questions that mattered.

Coromandel International · Analyst questions, management answers, and the quality of the response where the ledger is available.

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NegativeQ3-FY24 · 2024-01-24Back to quarter ↗

Questions audited

12

Answered directly

88%

Numeric claims

0

Consistency

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Question ledger

What was answered, and how?

Sumant Kumar · Motilal Oswal Financial Services Ltd.

direct

Impact of new government margin guidelines on Coromandel's profitability.

The government has issued an office memorandum... integrated manufacturers will be able to get a 12% margin... manufacturers who do not have backward integration... could get about a 10%, and importers about 8%.

Sumant Kumar · Motilal Oswal Financial Services Ltd.

direct

Inventory loss and phosphoric acid capacity expansion.

On the PA capacity, we are looking at, adding about 650 tons per day capacity... inventory, hit is concerned for the quarter... in the range of about INR 30 crore or so.

Arjun Khanna · Kotak Mahindra Asset Management Company

direct

Clarification on Coromandel's classification under new guidelines.

Yeah, because we have both granulation as well as phosphoric, sulfuric plants here, we would be an integrated manufacturer.

Arjun Khanna · Kotak Mahindra Asset Management Company

partial

Impact of unreasonable profit clause on previous year.

This guideline is effective first of April 2023... my initial assessment is it's not likely to have an impact for the company.

Arjun Khanna · Kotak Mahindra Asset Management Company

direct

Treatment of retail subsidiary margins under new guidelines.

It will be taken as the same, and the margin that we make on the sales will be considered as the overall margin for the company.

Vishnu Kumar · Avendus Spark

partial

Impact of cash-rich balance sheet on margin calculation.

One can interpret it that way... I don't think it's going to impact to a very great extent, considering the current situation.

Dheeresh Pathak · WhiteOak Capital

direct

Whether 12% PBT margin is on actual or normalized costs.

It will be on actual.

Dheeresh Pathak · WhiteOak Capital

direct

Why current margins are below 12% PBT despite flexibility.

Not every year is going to be the same... Last quarter has been tough. The NBS rates have been sharply corrected... there is no point in increasing the MRP and not being able to sell.

Bharat Sheth · Quest Investment Advisors Pvt Ltd

direct

Phosphoric acid capacity and backward integration details.

The phosphoric plant that we are looking at is a 200,000-ton capacity per annum... after this plant comes in place, we will still have about 200,000 tons or so, which we might have to import.

Gagan Thareja · ASK Investment Managers

partial

Historical average margins vs new guideline ceilings.

I may not be able to answer you at the industry level, but if you look at the performance of the company over a period in time, I don't think that companies have hit this line of cap at all.

Ankur Periwal · Axis Capital Ltd.

direct

Progress on crop protection business and Dhaksha drones.

In Q3, we grew handsomely, in volume terms... we have close to INR 300 crore of an order book for Dhaksha at this point in time.

Tarun · Old Bridge Asset Management

direct

Reason for stark reduction in per ton margins in Q3.

The impact of channel inventory has been taken in Q2 numbers, but the sales in Q3, the subsidy realization is also very low... raw material prices slightly going up.