Coromandel International Limited

notes
Economic Outlook:

• The global economy is experiencing a muted recovery with inflationary pressure and geopolitical issues persisting.
• The Indian economy is projected to be the fastest-growing large economy, with a revised GDP growth of 6.1% in 2023.

Agriculture:

• The Southwest monsoons in India have picked up, resulting in improved crop sowing and favorable agri input consumption.
• The government has approved NBS rates for the first half of the year and has announced the PM Pranam scheme to promote balanced fertilizer usage.
• The Nutrient and Allied business segment has seen a sales volume growth of 18% in phosphatic fertilizers.
• The Crop Protection segment has been affected by industry headwinds and sub-normal rainfall.
• The company has established approximately 8,800 stores as part of the Pradhan Mantri Kisan Samriddhi Kendra initiative.
• The agri inputs consumption is expected to pick up in the second quarter with improved monsoon coverage.
• The company is committed to driving integrated farm management practices and introducing novel technologies for agricultural solutions.

New Products:

• Coromandel has conducted a soft launch of Nano DAP, a nanotechnology-based fertilizer, and plans to introduce it in the second half of the year.
• The company has acquired majority shareholding in Dhaksha Unmanned Systems, a drone start-up, and is exploring growth opportunities in adjacent and step-out areas.

Financial Performance:

• Coromandel International has posted steady performance in Q1 with volume growth in fertilizer and sustained profitability.
• Coromandel recorded a consolidated total income of INR 5,738 crores in Q1 with an EBITDA of INR 709 crores.
• The company’s long-term credit rating continues to be strong, and it follows a conservative approach in hedging forex exposure.

Export Market:

• The Crop Protection business has grown by 17% in the export market, with plans to launch novel combination and technical products.