Coromandel International Q2 Results Review - Superior Margins Drives Outperformance: Prabhudas Lilladher

Prabhudas Lilladher Report

Coromandel International Ltd. reported revenue/Ebitda/profit after tax growth of 65%/42%/43% YoY respectively. Results were ahead of our and consensus estimates led by superior margins. Key highlights are-

1. overall fertiliser sales volumes were up 12% YoY;

2. crop protection posted flat YoY growth (up 1% YoY);

3. derived Ebitda/tonne stood at up Rs 6600 (H1 FY23 up Rs 6900 as against Rs 5000/tonne in H1 FY22);

4. market share stood flat at 19.2% in Q2 FY23 (for H1 FY23 at 16.2% as against 18.4% in same period last year);

5. Phosphorous acid contracted for Q3 FY23 at $1175/tonne down 31% QoQ;

6. subsidy outstanding at Rs 41.76 billion as on September 30, 2022 (up Rs 24.7 billion YoY, up Rs 14.5 billion QoQ).

Citing better margins for H1 FY23, Coromandel has revised upward their Ebitda/tonne guidance to up Rs 5500/tonne for FY23 as against their earlier guidance of Rs 4000-4500/tonne.

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