India's Coromandel International posts Q1 profit drop on soft agrochemical demand

SRF

07/08/2024 11:32

BENGALURU, Aug 7 (Reuters) - Indian agricultural chemicals firm Coromandel International  CORF.NS 
reported a 37.1% fall in first-quarter profit on Wednesday, hurt by weakness in its fertiliser and nutrients
business.
    The company's net profit after tax fell to 3.11 billion rupees ($37.05 million) for the April-June quarter
from 4.94 billion rupees a year earlier.   
    Revenue from operations dropped about 17% to 47.29 billion rupees, making it the company's fifth consecutive
quarter of decline.
    For further results highlights, click (Full Story).
    

    KEY CONTEXT
    Agrochemical and fertilizer companies have reported a lackluster performance as excessive inventory in the
domestic market pressured their sales volumes and margins. 
    However, domestic demand is expected to pick up on the prospects of above-average monsoon rains this year and
a bumper harvest, analysts said.
    Peer SRF  SRFL.NS  posted a drop in its profit for the quarter, hurt by weak demand in its chemicals business,
while Deepak Fertilisers and Petrochemicals  DPFE.NS  posted profit rise, helped by lower input cost.

    
    PEER COMPARISON
                                      Valuation     Estimates (next 12         Analysts' sentiment        
                                      (next 12           months)                                          
                                       months)                                                            
                      RIC           PE     EV/EBI  Revenue     Profit    Mean     # of     Stock to       Div
                                           TDA     growth %    growth %  rating*  analyst  price          yield
                                                                                  s        target**       (%)
 Coromandel            CORF.NS      24.07   15.66     5.17      14.46    Buy            9      1.17           0.37
 International                                                                                            
 SRF                   SRFL.NS      42.05   22.85    14.88      23.13    Hold          25      1.08           0.29
 BASF India            BASF.NS      34.09  20.84   9.68        20.47     Hold     1        1.43           0.26
 Deepak Fertilisers    DPFE.NS      16.04    8.51    13.74      43.97    Buy            1      0.85           0.91
 and Petrochemicals                                                                                       
 Corp                                                                                                     
 * 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 LSEG IBES
    -- $1 = 83.9340 rupees




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COROMANDEL INTERNATIONAL APRIL-JUNE STOCK    https://tmsnrt.rs/4dyFAam
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 (Reporting by Yagnoseni Das and Meenakshi Maidas in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com;))