India's Coromandel International posts Q1 profit fall on weak demand

Coromandel International

27/07/2023 09:44

BENGALURU, July 27 (Reuters) - Indian agricultural chemicals maker Coromandel International Ltd  CORF.NS 
reported a marginal drop in first-quarter profit on Thursday, hurt by slowing demand.
    Consolidated net profit after tax for the quarter fell 1% to 4.94 billion rupees ($60.3 million) from 4.99
billion rupees a year earlier.
    Analysts, on average, expected a profit of 4.22 billion rupees, as per Refinitiv data. 
    Revenue from operations fell 0.6% to 57.29 billion rupees.
    For further earnings highlights, click Full Story.
    
    KEY CONTEXT
    Analysts at Kotak Institutional Equities said inventory destocking by clients and weak demand from certain
end users are projected to continue for the majority of the first half of the current fiscal in the chemicals
industry.
    Rival Deepak Fertilisers posted a near-75% fall in first-quarter profit on Wednesday.
    Coromandel had reported a rise in profit for four consecutive quarters before posting a 15% fall in
March-quarter profit. 
    
    PEER COMPARISON
    
                                 Valuation (next   Estimates (next 12         Analysts' sentiment        
                                   12 months)           months)                                          
                      RIC        PE     EV/EBITD  Revenue     Profit    Mean     # of     Stock to       Div
                                        A         growth      growth    rating*  analyst  price          yield
                                                                                 s        target**       (%)
 Coromandel            CORF.NS   14.14      9.56    -14.42      4.87    Buy            9      0.83           1.21
 International Ltd                                                                                       
 SRF Ltd               SRFL.NS   27.55     16.73     7.58       2.71    Buy           25      0.81           0.38
 Deepak Fertilisers    DPFE.NS    7.98      6.03     1.31       NULL    Buy            1      0.80           1.81
 and Petrochemicals                                                                                      
 Corp Ltd                                                                                                
 Sumitomo Chemical     SUMH.NS   34.77     25.13    11.31      13.92    Buy            8      0.84           0.29
 India Ltd                                                                                               
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    APRIL-JUNE STOCK PERFORMANCE
    
   
 
    
-- All data from Refinitiv

-- $1 = 81.9374 Indian rupees

    



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 (Reporting by Kashish Tandon in Bengaluru; Editing by Sohini Goswami)
 ((Kashish.Tandon@thomsonreuters.com;))