Coromandel International Limited — Q4 FY24
Coromandel's Q4 FY24 consolidated revenue declined 28% YoY to INR 3,996 crore, driven by lower subsidy rates and raw material prices, though EBITDA rose 34% to INR 273 crore wit...
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.
82%Questions answered1Evaded / deflected11Questions auditedContradictedNumbers vs filing
Answered
High priority
Fertilizer EBITDA margin guidance for next year
Asked by Somaiah Valliyappan, Avendus Spark
Management gave a specific range for EBITDA per ton.
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Question
So we used to give guidance earlier, around 5,000 to 5,500 EBITDA per ton. So, I mean, in the current context of subsidy rates, how do we see this for the next year?
Jayashree Satagopan (President Corporate and CFO)
The margins for next year, we are expecting in the range of about INR 4,500-5,000 per ton in terms of EBITDA. This considers the NBS rate that has been announced by the government.
Partial answer
Medium priority
Scope for price increase in fertilizers
Asked by Somaiah Valliyappan, Avendus Spark
Management acknowledged the question but did not commit to any price increase, citing market dependence.
no specific price increase commitmentdeferred to market conditions
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Question
From an industry price increase, how do we see things? Because earlier, I mean, in one of the calls earlier, we were saying it is also a function of demand. So how do we see demand or inventory that is there in the system, and what is the scope for a price increase for this?
Sankar Subramanian (Executive Director of Nutrient Business)
Overall, price is a function of global prices of input, raw materials and commodity prices. We have seen some softness in the global DAP prices... If that warrants a correction, we may look at it, but as you see, at this point of time, we should be able to manage with the announced subsidy and the MRPs.
Answered
High priority
Brownfield expansion plans in fertilizer segment
Asked by Somaiah Valliyappan, Avendus Spark
Management provided specific capacity expansion numbers and timeline.
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Question
One final question on the brownfield expansions on the fertilizer front. So now that we have announced backward integration projects, and we are also doing work in progress on crop protection, so how would we think about it, and when do we actually will start, you know, planning for this?
Jayashree Satagopan (President Corporate and CFO)
Currently, the focus for fertilizer is to get the SA and PA plant... definitely we announce the and going forward, the business is looking at the opportunity to add further 3.5 lakh tons in the existing capacity. Which means from the current 34.5 lakh tons we are expecting another 3.5 lakh tons to be added.
Answered
High priority
Plans for Dhaksha drone business and margins
Asked by Prashant Biyani, Elara Securities
Management gave specific capacity, order book, and margin guidance.
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Question
Ma'am, what would be the plans for Dhaksha this year? Some comments on enhancing its capabilities, what area are they working on in R&D, and what could be the normal business margins as it scales up?
Jayashree Satagopan (President Corporate and CFO)
Dhaksha is on a solid start... We have set up a new state-of-the-art manufacturing facility... capacity to manufacture about 400 drones per day, per month... order book of INR 250 crore... Margin should be into with the high teens to begin with.
Declined
Low priority
Phosphoric and sulphuric acid production in Q4 and full year
Asked by Prashant Biyani, Elara Securities
Management did not provide the numbers on the call, offering to share offline.
deferred to offline
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Question
Ma'am, on the phosphoric acid and sulphuric acid production, how much it was in 4Q and full year?
Jayashree Satagopan (President Corporate and CFO)
We can pull it up in our notes, or Anuj will be able to give you the details offline.
Answered
High priority
CapEx investment for FY2025
Asked by Prashant Biyani, Elara Securities
Management provided a specific CapEx range.
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Question
And, ma'am, lastly, on CapEx side, how much are we investing this year?
Jayashree Satagopan (President Corporate and CFO)
We have, for FY 2025, estimated between INR 1,200 crore to INR 1,500 crore overall in terms of CapEx investment.
Answered
High priority
Outlook for specialty chemicals and nano fertilizer businesses
Asked by Ankur Periwal, Axis Capital
Management provided specific revenue figures and replacement targets.
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Question
First question on the two other new businesses, specialty chemicals as well as the nano fertilizer side. If you could, you know, help share some outlook on the CapEx, the revenue timelines, and how should one look at these businesses?
Jayashree Satagopan (President Corporate and CFO) and Sankar Subramanian
On the specialty chemical side... last year, we would have clocked close about INR 50 crore in terms of sales to the specialty chemicals base customers... On the Nano DAP... we hope to expand the volumes in next year... we hope to see 20-25% replacement happening over the next three to four years.
Partial answer
Medium priority
Medium-term thoughts on EBITDA mix between subsidy and non-subsidy businesses
Asked by Ankur Periwal, Axis Capital
Management discussed direction but did not provide a quantitative EBITDA mix target.
no specific mix target given
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Question
What are your thoughts on that EBITDA mix, let's say, three, four years out, if you could highlight that?
Jayashree Satagopan (President Corporate and CFO)
Each of the business have their own attractiveness and the growth trajectory. The intent, obviously, is to see how we can propel the growth for the non-subsidy businesses... investments are happening in some of the newer chemistries... drones and other aspects.
Answered
High priority
Retail store strategy and SNP business size and growth
Asked by Bharat Sheth, Quest Investment
Management provided specific revenue and store count numbers.
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Question
If you can give little more and color on the retail store strategy, as well as the SNP, where how much is currently the total size, and how do we see the SNP going along with, which is, once we were talking of a big potential?
Jayashree Satagopan (President Corporate and CFO)
Last year, I would say that we had somewhere close to INR 1,700 crore of revenue from all our retail centers. We have about 750-odd stores. We're planning to expand by 55 stores... SND is about INR 600 crore at this point in time.
Evasive
Medium priority
Cash on balance sheet and its impact on fertilizer profitability under government circular
Asked by Arjun Khanna, Kotak Mahindra Asset Management
Management acknowledged the issue but did not quantify the impact or provide a clear response.
no specific impact givendeferred to government clarification
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Question
The reason I ask this is in the context of the government circular in terms of profitability for fertilizers. So the cash on balance sheet works as a negative for us since it's on a PBT basis, and the income on cash would actually decrease the margins...
Jayashree Satagopan (President Corporate and CFO)
Here we are representing to the government, because the surplus is of a corporate and linked as a corpus for certain purposes... We are awaiting some clarifications.
Answered
High priority
Timeline for CapEx monetization into revenue and profits
Asked by Ramesh Sankaranarayanan, Nirmal Bang Equities
Management provided specific timelines for when benefits will flow.
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Question
Can you give us an idea in terms of, when you expect this, CapEx of INR 1,200-INR 1,500 crores to be monetized in terms of revenue and profits?
Jayashree Satagopan (President Corporate and CFO)
SA and PA plant will take two years to get completed, and hopefully in FY 2026 end or early FY 2027 is when those plants will be up and running... On the MPPs... could take again 18months-20 months' time... you should look at a two-year window.
Answered
High priority
Feasibility of achieving INR 4,500-5,000 EBITDA per ton margin guidance
Asked by Rohan Gupta, Nuvama Wealth Management
Management explained the factors supporting the margin guidance.
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Question
Given the current Kharif season rates, subsidy rates are already out by the government, and we do not see that any further revision in near term. If that doesn't happen, then do you think that this margin, which you're talking about, will be difficult to achieve?
Jayashree Satagopan (President Corporate and CFO) and Sankar Subramanian
There has been a reduction in the NBS rates... one could look at INR 1,500-INR 2,000 increase in the overall subsidy... we are seeing a trend for RM to be soft and stable... plus, the sulfuric acid plant... will also bring in more operational efficiencies.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA per ton guidance for next year: INR 4,500-5,000 | 4,750 | 7 | Overstated vs filing |
| Dhaksha order book of INR 250 crore | ₹250 cr | ₹3,913 cr | Understated vs filing |
| Specialty chemicals sales last year: INR 50 crore | ₹50 cr | ₹3,913 cr | Understated vs filing |
| Retail revenue last year: INR 1,700 crore | ₹1,700 cr | ₹3,913 cr | Understated vs filing |
| SNP business size: INR 600 crore | ₹600 cr | ₹3,913 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.