India's Coromandel International posts Q2 profit drop as costs rise

Coromandel International

24/10/2024 12:57

Oct 24 (Reuters) - Indian agricultural chemicals firm Coromandel International  CORF.NS  posted
a fourth straight fall in quarterly profit on Thursday, hurt by higher costs.
    Consolidated profit after tax fell 12.3% to 6.64 billion rupees ($79 million) for the quarter ended
Sept.30 from 7.57 billion rupees a year earlier.
    Revenue from operations rose 6.4% to 74.33 billion rupees, while total expenses jumped 9.3% to
65.93 billion rupees, led by higher cost of materials consumed.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3M00U6.
    
KEY CONTEXT
    Analysts have flagged the high fertiliser and agricultural chemicals inventory and destocking for
the past few quarters, which has pressured prices.
    Brokerage Elara Capital said in a pre-earning note that agrochemical demand has improved but
continued supplies from China have meant that there is little visibility of price increase in the near
term, which is making it tough for many domestic companies to sell at a profit.    
    Peer SRF  SRFL.NS  posted a steeper-than-expected drop in its September quarter profit on Tuesday,
hurt by sustained weak demand in its mainstay chemicals business and due to higher costs.
    
PEER COMPARISON
    
                               Valuation (next   Estimates (next 12  Analysts' sentiment          
                                 12 months)                 months)                               
                   RIC         PE      EV/EBIT  Revenue   Profit     Mean     No of     Stock to  Div
                                       DA       growth    growth     rating*  analysts  price     yield
                                                                                        target**  (%)
 Coromandel         CORF.NS     22.82    14.83    6.31      15.40    Buy             9    0.87     0.37
 International                                                                                    
 Ltd                                                                                              
 SRF Ltd            SRFL.NS     34.23    19.31   14.83      27.79    Hold           26    0.93     0.32
 BASF India Ltd     BASF.NS     33.66    21.62   11.89      30.14    Hold            1    1.24     0.19
 Deepak             DPFE.NS     14.91     8.57    NULL      32.74    Buy             1    0.86     0.86
 Fertilisers and                                                                                  
 Petrochemicals                                                                                   
 Corp Ltd                                                                                         
    
 
    
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock
is trading above the PT


JULY-SEPTEMBER STOCK PERFORMANCE                       
    
    
    

-- All data from LSEG IBES

-- $1 = 84.0460 Indian rupees    
        

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Coromandel International Sept Qtr 2024 vs Peers    https://tmsnrt.rs/40fjqqp
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 (Reporting by Ashish Chandra in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))