 "fertilisers")
Fertiliser maker Coromandel International, part of the Murugappa Group, has posted a 57 per cent dip in consolidated net profit during the third quarter of the financial year 2023-24 to Rs 228 crore, as compared to Rs 527 crore during the October to December period of the previous financial year.
The dip in profit was mainly owing to a decline in the company’s income. Total income in the third quarter was at Rs 5,523 crore versus Rs 8,349 crore over the previous year, registering a de-growth of 34 per cent. “The agri inputs industry experienced a challenging quarter with external headwinds such as below-normal monsoons and lower crop sowings. The Nutrient Based Subsidy (NBS) rates for the Rabi season underwent a steep downward revision which, coupled with the rising raw material prices, further impacted the industry’s performance,” said Arun Alagappan, Executive Vice Chairman, Coromandel International.
Nutrient and Allied Business
The revenue for the quarter ended December 2023 was at Rs 4,892 crore as against Rs 7,710 crore during Q3 of FY2023. Profit before interest and tax for the quarter was Rs 257 crore versus Rs 697 crore for the quarter ended December 2022.
Crop Protection Business
The revenue for the quarter ended December 2023 was at Rs 612 crore as against Rs 651 crore for the quarter ended December 2022. Profit before interest and tax for the quarter was Rs 82 crore versus Rs 81 crore for the quarter ended December 2022.
“Overall, the phosphatic industry’s primary sales witnessed a de-growth in volumes by 17 per cent during the quarter. Despite the challenges, Coromandel’s Nutrient and Allied businesses improved its market share during the quarter amidst a decline in sales volumes. The Crop Protection business of the company reported a healthy volume growth of 21 per cent, improving its performance in exports and domestic markets. Coromandel has also continued its engagement on Contract Development and Manufacturing Organisation (CDMO) opportunities and has initiated marketing of Specialty Chemicals products from its existing manufacturing facilities,” Alagappan added.
