India's Coromandel International posts 15% drop in Q4 profit as costs rise

Sumitomo Chemical India

15/05/2023 13:20

BENGALURU, May 15 (Reuters) - Indian agricultural chemicals maker Coromandel International Ltd
 CORF.NS  reported a 15% fall in its quarterly profit on Monday, as soaring costs offset growing demand.
    Consolidated net profit after tax for the quarter rose to 2.46 billion rupees ($30.08 million), compared
with 2.9 billion rupees a year earlier.
    Revenue from operations rose nearly 30% to 54.76 billion rupees, but was outpaced by a 32% increase in
total expenses.
    
    WHY IT MATTERS
    Coromandel has reported a rise in quarterly profit in the last four quarters, as increased crop sowing
and firm crop prices bolstered the demand for its products. 
    While the fertiliser sector witnessed high channel inventory in the fourth quarter driven by slight
growth in demand and cooling raw material prices, reduced pest infestations have dented the consumption of
pesticides, analysts said. 
    Last week, peer UPL Ltd  UPLL.NS  reported a 42% fall in its Q4 profit, hurt by rising raw material
costs. 
    
    PEER COMPARISON
    
                               Valuation    Estimates              Analyst                          
                               (next 12      (next 12              s'                               
                                months)      months)               sentime                          
                                                                   nt                               
                      RIC    PE     EV/EBI  Revenue     Profit     Mean     # of     Stock to       Div
                                    TDA     growth      growth     rating*  analyst  price          yield
                                                                            s        target**       (%)
 Coromandel                                                    Buy                              
 UPL Ltd                                                                                        
 Sumitomo Chemical                                             Buy                              
 SRF 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
    
    JAN-MARCH STOCK PERFORMANCE
    
    
    -- All data from Refinitiv

    -- $1 = 81.78 Indian rupees
    

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Coromandel Int'l shares vs peers    https://tmsnrt.rs/3M6fnUv
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 (Reporting by Kashish Tandon and Hritam Mukherjee)
 ((Kashish.Tandon@thomsonreuters.com;))