Coromandel International September quarter net profit declines 32%
Net profit fell to `160.08 crore in September quarter from `236.9 crore the year ago; total income rose 20% at `3,215.4 crore
Hyderabad: Coromandel International Ltd, the fertilizer maker controlled by the Murugappa group, said second-quarter profit fell 32.4% because of higher expenses.
Net profit, including those of its units, fell to ₹ 160.08 crore in the three months ended 30 September from ₹ 236.9 crore in the year earlier. Total income from operations rose by 20% at ₹ 3,215.4 crore.
In the previous year, there was an exceptional item of ₹ 107 crore related to realization of subsidy and tax advantage, said Kapil Mehan, managing director of Coromandel.
Excluding that, the company registered earnings before interest, taxes, depreciation and amortization (Ebitda) of 20%, Mehan added.
The company’s subsidiaries, Sabero Organics and Liberty Phosphate Ltd (LPL), reported a turnover of ₹ 220.34 crore and ₹ 86.75 crore, respectively.
The performance of LPL, a maker of powdered and granulated single super phosphate (SSP), which Coromandel acquired in January has been flat due to pricing pressures and reduction in subsidy.
LPL is the largest manufacturer of powdered and granulated SSP with around 14% market share with an installed capacity of 9.6 metric tonnes.
“Strong and active monsoon has had a positive effect on all the agri-inputs business of the company during the quarter," Mehan said.
A correction of raw material prices globally helped to offset the impact of 20% rupee depreciation, giving stability to fertilizer prices, Mehan added.
“Coromandel results were good, mainly driven by volume growth, at a time the market was going through a challenging period," said an analyst of a Mumbai-based brokerage house who did not want to be named, citing his company’s policy.
Shares of Coromandel gained 1.27% to ₹ 232.05 on the BSE, while the exchanges’s benchmark Sensex declined 0.13% to 20,864.97 points.
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