Fertiliser manufacturer Coromandel International, part of the Murugappa Group, reported a slight 1 per cent decrease in its consolidated net profit for the first quarter of 2023-24, with a profit of Rs 494 crore compared to Rs 499 crore for the same quarter in 2022.
The company's total income for the quarter ending June 2023 also marginally decreased to Rs 5,738 crore, compared to Rs 5,783 crore for the same quarter in the previous year. "Despite the challenging business environment resulting from a delayed monsoon that affected crop sowings and agri-input applications, Coromandel posted a steady performance in Q1, registering strong volume growth and maintaining profitability," stated Arun Alagappan, Executive Vice Chairman of Coromandel International Ltd.
Considering only the nutrient and allied business, the profit before interest and tax for the quarter rose by 12 per cent to Rs 672 crore from Rs 602 crore. The revenue for the quarter ending June 2023 was Rs 5,192 crore, compared to Rs 5,111 crore for the same quarter in the previous year, marking a year-on-year growth of 2 per cent.
The crop protection business saw a profit before interest and tax of Rs 55 crore for the quarter, down from Rs 85 crore for the same quarter in 2022. Revenue for the quarter ending June 2023 was Rs 556 crore, a decrease from Rs 654 crore for the same quarter in the previous year.
Alagappan added, "The performance of the Nutrient and Allied businesses was propelled by a robust 18% sales volume growth in phosphatic fertilisers. The Crop Protection segment's performance during the quarter was hampered by industry headwinds and below-average rainfall in its key markets. The business continued to work on enhancing its manufacturing efficiencies, expanding its product portfolio, and has plans to launch innovative combinations and technical products during the year."