Q1 2025 Coromandel International Ltd Earnings Call Transcript
Key Points
- Coromandel International Ltd (BOM:506395) reported a strong recovery in the Southwest monsoons, leading to improved agricultural conditions and higher reservoir levels.
- The company saw a significant increase in phosphatic consumption, with NPK consumption up by 42%, indicating a positive shift towards balanced nutrition.
- The new sulphuric acid plant at Vizag is operating close to full capacity, enhancing backward integration and generating capital power from Waste Heat Recovery.
- The Crop Protection segment saw a 5% increase in volumes, driven by growth in both technicals and formulations, with 10 new products introduced in Q1 FY '25.
- The company has received all statutory clearances for its proposed phosphoric acid and sulphuric acid plant in Kakinada, with major orders already released.
- The consolidated total income for Q1 FY '25 decreased to INR4,783 crores from INR5,738 crores in Q1 of the previous year, mainly due to lower subsidy rates.
- The consolidated EBITDA for the quarter dropped to INR506 crores from INR709 crores in the corresponding period last year, impacted by lower NBS rates and increased raw material prices.
- Subsidy claims received during the quarter were significantly lower at INR987 crores compared to INR2,069 crores in the same period last year.
- The company continues to face price pressures in the technical export market, particularly due to dumping from China, affecting margins.
- The new technical plant for DMPAT will only cover 20-25% of the company's requirements, indicating limited immediate cost savings.
Ladies and gentlemen, good day, and welcome to the Coromandel International Limited Q1 FY '25 earnings conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Prashant Biyani from Elara Securities Private Limited. Thank you, and over to you, sir.
Good afternoon, everyone. Thank you for joining our Q1 FY '25 earnings con call of Coromandel International. From the management side, we have Mr. S. Sankarasubramanian, MD and CEO; Ms. Jayashree Satagopan, President Corporate and CFO; and Dr. Raghuram Devarakonda, Executive Director, CPC, Bio and Retail business.
First of all, many congratulations to Mr. Sankarasubramanian on being elevated to the role of MD and CEO for the company. I would request the management to give their opening remarks on the results, post which we'll start with Q&A session. Thank you, and over to the management team.
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