India's Coromandel International posts 35% fall in Q4 profit on soft agrochemical demand

SRF

25/04/2024 11:34

Indian agricultural chemicals firm Coromandel International  CORF.NS  reported a nearly 35% fall in fourth-quarter profit on
Thursday, hurt by subdued demand in its mainstay fertilizer and nutrient chemicals business.
    Net profit fell to 1.60 billion rupees ($19.2 million) for the quarter ended March 31 from 2.46 billion rupees a year
earlier. 
    Revenue from operations fell about 28% to 39.13 billion rupees, making it the company's fourth consecutive quarter of
decline.
    For further results highlights, (click)
    
    KEY CONTEXT
    Factors such as excessive inventory in the domestic market, water scarcity in southern India and unfavorable subsidies
hit the financial performance of agrochemical and fertilizer companies in the fourth quarter. 
        Analysts, however, expect 
    above average
     monsoon rainfall and more chemicals subsidies from fiscal year 2025 to change the fortunes of firms including
Coromandel.
    The company is the first among its peers to report its quarterly results.
    
    PEER COMPARISON
                                       Valuation (next    Estimates (next 12  Analysts' sentiment                 
                                       12 months)         months)                                                 
                            RIC        PE      EV/EBITDA  Revenue    Profit   Mean     No. of     Stock to price  Div yield
                                                          growth%    growth%  rating*  analysts   target**        (%)
 Coromandel International    CORF.NS   16.40   10.27      8.11       19.44    Buy      9          0.92            1.09
 Ltd                                                                                                              
 SRF Ltd                     SRFL.NS   40.46   22.58      18.22      43.42    Buy      25         1.04            0.28
 Deepak Fertilisers and      DPFE.NS   9.54    6.14       16.50      NULL     Buy      1          0.83            1.80
 Petrochemicals Corp Ltd                                                                                          
 Sumitomo Chemical India     SUMH.NS   42.30   30.46      19.31      40.83    Buy      8          0.94            0.30
 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
    
    JANUARY-MARCH STOCK PERFORMANCE
 
 
    -- All data from LSEG
    -- $1 = 83.3028 rupees



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CORF STOCK JAN-MARCH    https://tmsnrt.rs/49OVUBS
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 (Reporting by Yagnoseni Das in Bengaluru; Editing by Sonia Cheema)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))