Coromandel International shares jump over 6% despite 33% decline in Q4 PAT

Coromandel International on Thursday reported a 33% year-on-year (YoY) decline in its fourth quarter consolidated net profit at ₹164 crore. Total income for the quarter fell 27.65% to ₹3,996 crore. Shares of the company were trading 6.77% higher on Friday.

For the fiscal year 2024, the company reported a 25% YoY fall in consolidated total revenue to ₹22,290 crore while net profit fell 18.48% to ₹1,641 crore.

The nutrient and allied business revenue for the quarter stood at ₹3,358 crore while the crop protection business revenue stood at ₹564 crore. The board recommended a final dividend of ₹6 per share for FY24.

Arun Alagappan, executive vice chairman at Coromandel International said FY24 was marked by a challenging business environment as sub-normal monsoons and lower reservoir levels in the company’s key operating markets impacted the agri-inputs consumption. “Further, the sharp corrections in subsidy rates in the second half of the year coupled with global headwinds in crop protection resulted in margin pressure,” he said.

“Fertiliser plants operated at higher capacity at 95% levels and improved its backward integration capabilities. Crop protection registered a strong 20% volume growth across the international and domestic markets and plans to introduce new molecules through captive and in-licensing arrangements. Retail stores improved its farm level outreach and is expanding its footprint in new markets in FY25,” he added.

The company also pointed out that as part of its diversification strategy, it has forayed into specialty chemicals by leveraging its existing infrastructure. The firm said its investment in drone company Dhaksha is progressing well with a strong order book of around ₹250 crore from the defence and agriculture segments.

Coromandel International also stated that A Vellayan has retired from the position of Chairman and Non-Executive Director with effect from the close of April 25, 2024. The board has approved the appointment and redesignation of Arun Alagappan as Executive Chairman.

Shares of the company have fallen 4.84% since the beginning of the year. The stock has risen over 26% in the last one year.