Coromandel International Q1 Results Review - Lower Subsidy, Higher Cost Hit Nutrient Segment: Nirmal Bang

Nirmal Bang Report

Coromandel International Ltd. Q1 FY25 revenue came in at Rs 47.29 billion –1.1% above our estimates and a tad lower than street estimates- The Nutrient segment revenue beat our estimates by 2.1% and the CPC segment revenue missed by 12.4%. profit after tax was a miss by 14.9% versus our estimate and 19.6% miss versus street estimates due to a hit on Nutrient Ebit margin and higher depreciation and interest expenses.

Gross margin at 26.4% saw a miss of 101 basis points as cost of goods sold was 2.5% above our estimate. Ebitda margin at 10.7% was in line.

Gross contribution was 2.7% below our estimates whereas absolute Ebitda saw a tad beat versus our estimate and 9.1% miss versus street estimate. The tad beat at Ebitda was primarily due to other expenses coming lower by 6.6% than our estimates

Nutrient segment Ebit (adjusted for corporate expenses) stood at Rs 3.85 billion, a miss of 1.4% versus our estimate; adjusted Nutrient Ebit margin at 9.2% was a 33 basis points miss. The 6% miss was on the Nutrient segment volume and 7.8% miss on Ebit/tonne of Manufactured Nutrient.

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