Coromandel Intl

The second largest phosphatic fertilizer company of India, the company, for Q1FY18 posted a jaw dropping 90% (YoY) jump in consolidated net profit at Rs.75 crore. This was on the back of a 10% rise in net revenue at Rs.2289 crore, helped mainly by an early onset of monsoon which in turn meant early sowing, leading to robust demand. What also helped was the reduction is total costs, led mainly by lower interest outgo and other expenses; total expenses were at 95% of total revenue v/s 99% (YoY).

EBITDA for the quarter was up 94% at Rs.172 crore and margins rose sharply from 4.4% to 7.7%.

Equity is at Rs.29.19 crore and EPS for Q1FY18 came in at Rs.2.6 (FV of Re.1).

The company is very optimistic about Q2 and has stated that with solid forecast of normal south west monsoons and implementation of agrarian and policy reforms targeting soil health and balanced nutrition, the agriculture scenario is get to get better.