Coromandel International Limited — Q2 FY25
Coromandel reported a strong Q2 FY25 with consolidated revenue of INR 7,498 crore (+7% YoY) driven by 13% volume growth in fertilizers and a 20%+ volume growth in domestic crop...
bullish
high
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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.
67%Questions answered1Evaded / deflected12Questions audited
Answered
High priority
What drove profitability improvement in crop protection and non-subsidy non-CP business?
Asked by Prashant Biyani, Elara Securities
Management provided specific drivers: new products, cost measures, and domestic growth.
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Question
Ma'am, what drove the profitability improvement in crop protection and especially the non-subsidy, non-CP business?
Jayashree Satagopan (President and CFO)
As the crop protection business, we've seen a good growth happening in the domestic formulation business. ... the company had introduced 10 new products, including one patented molecule of ISK. ... cost measures ... have also led to a better cost position.
Partial answer
High priority
Rock phosphate inventory coverage and phosphoric acid price outlook.
Asked by Prashant Biyani, Elara Securities
Management gave directional answer but no specific month or price level.
no specific month givenno specific price level given
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Question
rock prices have increased of late ... how are we stocked up on the inventory of rock phosphate, till which month? And do you also expect phosphoric acid prices to increase from here?
Sankarasubramanian S (MD and CEO)
phosphoric price for the Q3 is yet to be settled, so but there will be definite increase ... In terms of the rock prices ... we always ensure that we cover for the three to four months ahead.
Partial answer
Medium priority
How will ammonia price spike affect NPK mix in H2?
Asked by Prashant Biyani, Elara Securities
Management expects normalization but did not quantify impact on mix.
no specific mix change quantified
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Question
going forward, if you see the ammonia prices, subsidy on N has reduced, but prices have increased. So how would it change the complex portfolio mix for you going into H2?
Sankarasubramanian S (MD and CEO)
This has been a temporary phenomenon. ... prices should soften. ... we do keep optimizing the grades, and that is the flexibility what we have in switching over from one NPKs to another NPKs.
Partial answer
Medium priority
Revenue from Nano fertilizer and Dhaksha in Q2.
Asked by Prashant Biyani, Elara Securities
Management gave volume but not revenue; Dhaksha not addressed.
no revenue figure givendeferred Dhaksha answer
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Question
how much was the revenue from Nano fertilizer as well as Dhaksha in Q2?
Sankarasubramanian S (MD and CEO)
Nano fertilizer ... roughly, in terms of the volumes, I can tell you, 16 lakh bottles ... 16.8 lakh bottles is what we have done, one liter bottles. And in terms of the Dhaksha, probably we'll address it separately.
Evasive
High priority
Which products will the new MPP target in domestic and export?
Asked by Parth Mehta, Vallum Capital
Management declined to identify specific products, citing competitive reasons.
refused to name productsgeneric description only
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Question
you mentioned that the new MPP in the crop protection side will help meet the growing demand ... which are the products that you've identified, and in the domestic and the export geographies?
Raghuram Devarakonda (Executive Director)
at the moment, whatever Shankar mentioned, for the obvious reasons, we don't want to divulge the specific names. ... Suffice to say that these are relatively younger products.
Answered
High priority
What drove better-than-expected operational profitability in fertilizer?
Asked by Vishnu Kumar, Avendus Spark
Management listed specific operational improvements and cost savings.
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Question
In terms of the fertilizer business, the operational profitability is better than expected ... what has led to kind of slightly better ...?
Sankarasubramanian S (MD and CEO)
Last year we commissioned sulfuric acid plant ... we could produce sulfuric acid at a much lower price. ... power generation ... significantly reduced the conversion cost. ... product flexibility ... all this has been helpful.
Answered
High priority
How much structural cost savings from sulfuric acid and power?
Asked by Vishnu Kumar, Avendus Spark
Management provided specific annual savings figures.
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Question
How much would probably be a structural cost saving for us, like, as you, sir, mentioned on the power and the RO and water ...?
Sankarasubramanian S (MD and CEO)
The sulfuric acid alone has, can potentially give us, close to INR 160-170 crore per annum ... last year will be somewhere between INR 40-45 crore, and that can get doubled.
Answered
High priority
Timeline for 0.75 million ton capacity and market approach before launch.
Asked by Vishnu Kumar, Avendus Spark
Management gave timeline and interim strategy.
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Question
This 0.75 million tons of capacity, when are we likely to have it ... in terms of commercial sales, when should we begin? And in the interim ... are we going to do additional marketing?
Sankarasubramanian S (MD and CEO)
The plant will take two years to come in ... we can't be waiting for the capacity to come in and start selling. ... we'll be also focusing on newer geographies ... develop market for these grades.
Partial answer
Medium priority
Strategy for retail store expansion over next 2-3 years.
Asked by Risham Jain, DSP Asset Managers
Management gave a range but no firm target; strategy still evolving.
no specific target number givenstill in discussion
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Question
you mentioned that you've opened 45 new store in this quarter ... what is the strategy on the retail front, let's say, over the next two, three years?
Sankarasubramanian S (MD and CEO)
We are very keen to increase the footprints ... currently we are around 750 to 800 stores. Our aim would be to increase it by another 20% at least in the coming two, three quarters. ... I don't see why can't we double it in next two, three years' time.
Answered
High priority
Three-year capacity and backward integration for nutrients including SSP.
Asked by Bharat Singh, Quest Investment Advisors
Management provided specific capacity and backward integration percentage.
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Question
what would be our capacity for this nutrient business, including SSP? And how do we see what kind of a backward integration at that point of time we'll have ...?
Sankarasubramanian S (MD and CEO)
overall capacity will go up to 45 lakh tons in the next two years' time. ... we'll be close to 60% of the total intermediate capacity requirement.
Partial answer
High priority
Capital allocation plan given net cash of over INR 4,000 crore.
Asked by Bharat Singh, Quest Investment Advisors
Management gave general principles but no specific allocation numbers.
no specific allocation breakdown given
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Question
since we are sitting with 4,000-plus crore kind of a net cash, so what will be our capital allocation, including for Dhaksha, additional investment, then other facility?
Jayashree Satagopan (President and CFO)
it will be mainly for the business growth within Coromandel ... each of the businesses come with their own proposals for the growth. ... if there are interesting opportunities ... those also could be funded through this pool of surplus.
Partial answer
High priority
EBITDA per ton guidance and impact of backward integration.
Asked by Himanshu Binani, Anand Rathi
Management reaffirmed range but did not provide updated guidance.
no specific revised guidance given
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Question
how do we see the EBITDA per ton moving forward? Our guidance has been somewhere around INR 4,500-INR 5,000 per ton. Do you see that it should, like, increase going forward?
Sankarasubramanian S (MD and CEO)
The sustainable EBITDA, the range what you're indicating, we are quite comfortable with that. ... If the environment improves, definitely the margins will also go up.