Coromandel International Limited — Q2 FY24
Coromandel reported Q2 FY24 consolidated revenue of INR 7,033 crore, down ~31% YoY due to lower subsidy rates, but EBITDA remained flat at INR 1,059 crore and PAT grew 2% to INR...
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
Medium priority
Cost savings and payback period for sulfuric acid plant CapEx of INR 400 crore.
Asked by Noel Vaz, Union Asset Management
Management gave a payback range but did not quantify cost savings.
no specific cost savings figure givenpayback range provided but not precise
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Question
So the CapEx is about INR 400 crore. What is the extent of cost savings that we are looking at the payback period?
Jayashree Satagopan, President Corporate and CFO
The purpose of setting up the sulfuric acid plant was mainly for securing our supplies... with the current prices that are prevailing, we think in about 2-3 years, we should get a payback on this project.
Partial answer
High priority
Provisions for NBS subsidy changes in H2.
Asked by Noel Vaz, Union Asset Management
Acknowledged provision but did not disclose amount.
no quantification of provision
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Question
I just want to know if there's any kind of provision that we are expecting in the second half of the financial year.
Jayashree Satagopan, President Corporate and CFO
We will see that the subsidy realization in the second half is going to be lower because of the lower NBS rates. Having said that, we've also made some reasonable estimates and have factored it in our Q2 financials.
Answered
High priority
Per ton margin outlook for H2 vs H1 and previous year.
Asked by Tarang Agrawal, Old Bridge Asset Management
Provided a specific full-year EBITDA per ton guidance.
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Question
purely on a per ton margin basis, how do you see H2 period versus what you've seen in H1 and the previous year as well?
Jayashree Satagopan, President Corporate and CFO
with the current visibility that we have, I think it should be in the range of INR 5,000 per ton for the full year.
Partial answer
Medium priority
Volume growth outlook for H2 and CapEx split for H1.
Asked by Tarang Agrawal, Old Bridge Asset Management
Gave qualitative outlook but no quantitative volume growth or H1 CapEx split.
no specific volume growth numberCapEx split not provided by quarter
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Question
how are we looking at H2? And the third one, if you could give us a split of the INR 580 crore CapEx in H1 FY 2024.
Jayashree Satagopan, President Corporate and CFO
with the expectations of a near normal monsoon in the second half for the Rabi season, we expect that the consumption should go up. ... All of this put together should add up to say about INR 500 crores of CapEx during the year.
Partial answer
High priority
Impact of NBS policy on Q3 profitability for backward integrated players.
Asked by Prashant Biyani, Elara Securities
Gave qualitative comparison but no specific numbers.
no specific margin impact quantification
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Question
for Q3, whether there will be a significant dip for the industry in profitability, or there will be no profit at all on major grades of fertilizer that we are selling as an industry.
Jayashree Satagopan, President Corporate and CFO
For companies who are backward integrated, the impact could be much lower compared to companies who are buying and manufacturing. ... definitely there is going to be an impact on margin, no doubt at all.
Answered
Medium priority
Backward integration percentages for phosphoric and sulfuric acid.
Asked by Prashant Biyani, Elara Securities
Provided specific percentages.
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Question
how much are we backward integrated in phosphoric acid manufacturing and how much in sulfuric acid?
Jayashree Satagopan, President Corporate and CFO
for phos acid, slightly above 50%, and sulfuric acid could be within 60% or so.
Declined
High priority
Quantification of provision for subsidy rate change in Q2.
Asked by Akshat Mehta, Samiksha Capital
Explicitly declined to provide the provision amount.
refused to quantify
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Question
in quarter two, have we taken some kind of provision for the reduction in subsidy rate that has come in recently? If you would quantify that?
Jayashree Satagopan, President Corporate and CFO
No, I wouldn't be in a position to quantify it now, but we have considered some impact on account of the NBS rate that has been announced.
Answered
Medium priority
Nano DAP plant capacity and revenue potential.
Asked by Vishal Biraia, Bandhan AMC
Provided capacity and MRP, enabling revenue calculation.
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Question
for this Nano DAP plant that is coming up, could you tell us as to what is the extent of capacity and what is the kind of revenue that you would look forward to?
Jayashree Satagopan, President Corporate and CFO
The capacity that we are looking at is 1 crore bottles per year, which is 1 liter bottle. ... For these bottles, the MRP is about INR 600.
Answered
Medium priority
Target operating margins for Nano DAP on steady state.
Asked by Vishal Biraia, Bandhan AMC
Provided a specific margin range.
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Question
On a steady state basis, once this business stabilizes, what would be the kind of operating margins that you would target?
Jayashree Satagopan, President Corporate and CFO
It should be in the range of 20-odd%.
Answered
High priority
Will fertilizer EBITDA be positive in H2 if no price hikes occur?
Asked by Vishnu Kumar, Avendus Spark
Gave a clear positive outlook for Coromandel.
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Question
if the price hikes don't come, will the fertilizer EBITDA still be positive, or can it tend to be a bit negative?
Jayashree Satagopan, President Corporate and CFO
Given the backward integration that we have, we expect the margins to be positive.
Answered
High priority
Details on crop protection volume growth in domestic and export markets.
Asked by Ankur Periwal, Axis Capital
Provided specific export growth percentage and customer addition numbers.
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Question
how has been the growth in exports and, you know, especially given the negative commentary from most of the global and other domestic players as well, how are we seeing the market there?
Jayashree Satagopan, President Corporate and CFO
Our export growth has grown by 29%. We were successful in onboarding new customers. We got more than 20 new customers.
Answered
High priority
Volume growth in crop protection and timeline for INR 1,000 crore CapEx.
Asked by Ramesh Sankaranarayanan, Nirmal Bang Equities
Provided export volume growth percentage and CapEx timeline.
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Question
can you give us some details on the volume growth in the crop protection business in domestic and export markets for the second quarter? And, even give us some sense in terms of when you expect to complete the INR 1,000 crore CapEx in crop protection.
Jayashree Satagopan, President Corporate and CFO
the export market had the maximum volume growth, close to about 30-odd%. ... it could take a period of about 24-36 months in all, for us to consume this entire capital.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Export growth of 29% in crop protection | 29% | -30.7% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.