Coromandel Intl reaps bounty

Coromandel International is right up there among the top five gainers on the BSE since opening bell. Enthused by its good performance for Q2FY20, the stock price rose 5.6% to Rs.442, outperforming the sector by over 3%. In fact the fertilsier sector has shown a gain of over 2%.

Despite a 3% (YoY) drop in consolidate total revenue at Rs.4858 crore, the company ended the quarter with a 38% rise in net profit at Rs.504 crore.

The jump in profit, to a large extent can be attributed to the lower tax provision of Rs.111 crore v/s Rs.194 crore (YoY).

The company stated that its nutrient and allied businesses segment registered a very good performance during the quarter. Business improved its manufactured product sales by 8% over previous year, supported by stable raw material prices.

EBITDA for the quarter stood at Rs.713 crore, up 7% while margins jumped 130 bps to 14.7%.